For the first time since October 2014, the median sales price for homes in Ada County dropped year-over-year. In November, the median sales price of homes sold was $525,000 — 2.5% lower than in November 2021 and 6.5% less than in October 2022.
Home prices are driven by supply versus demand. Higher mortgage interest rates, combined with the swift home price appreciation in the last several years, have decreased purchase power for buyers and lessened demand. As a result, some buyers have made budget adjustments and others have pressed pause on their home search.
Consequently, fewer buyers equated to fewer home sales for the county. There were 548 home sales in November, 39.0% less than a year ago. Of those, 380 were existing/resale homes, down 44.9% from November 2021, and 168 were new construction homes, down 19.2% from last year.
The chart below shows activity for single-family homes with or without acreage, between January 2017 and November 2022. Sales volume is impacted by several factors, one of which is mortgage interest rates as the majority of buyers finance their home purchase. The rapid increase of mortgage interest rates resulted in lower sales throughout 2022.
To attract the buyers who remain in the market, sellers are adjusting prices accordingly or offering buyer incentives like closing cost credits to buy down the interest rate. Lenders are also adapting and offering new programs to help buyers combat higher interest rates.
Those who are able to buy in today’s market have more options to choose from and more time to shop for a home than they would have a year or even six months ago. There were 1,843 homes available for purchase in Ada County in November, 131.5% more than in November 2021. Homes that closed in November spent an average of 47 days on the market before going under contract, compared to 29 days this time a year ago.
So, what’s next? Mortgage interest rates have declined in recent weeks, from the most recent high average of 7.08% on November 10, 2022, to 6.33% on December 8, 2022, according to Freddie Mac, retrieved from FRED, Federal Reserve Bank of St. Louis. While uncertainty remains around what mortgage interest rates will do — especially in response to any future Fed rate adjustments — real estate professionals are hopeful rates will continue to decline or at least stabilize in 2023.
BRR will provide the full 2022 housing statistics in our December Market Report next month, but in the meantime, here are a few forecasts from national economists for the coming year:
The rolling 12-month median sales price for Elmore County home sales was $340,435 in November 2022, a 10.2% increase from the year before. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price to get a better idea of the overall trends.
With 30 closings last month, the number of home sales decreased 55.9% compared to the same month a year ago. Of those, 25 were existing/resale homes and five were newly constructed homes. There were 24 pending sales — properties with an accepted offer that are expected to close within 30-60 days — a decrease of 68.8% compared to November 2021, and the ninth consecutive month of year-over-year declines.
Higher mortgage interest rates, combined with the swift home price appreciation in the last several years, have decreased purchase power for buyers and lessened demand. As a result, some buyers have made budget adjustments and others have pressed pause on their home search. To attract the buyers who remain in the market, sellers are adjusting prices accordingly and many are offering buyer incentives like closing cost credits to buy down the interest rate.
With lessened demand, listings have spent more time on the market, averaging 39 days in November 2022 compared to 35 days a year ago. These longer market times have allowed more housing inventory to accumulate, giving buyers more options to choose from. There were 80 available homes for purchase at the end of the month, an increase of 86.0% compared to November 2021. Of those, 67 were existing/resale listings and 13 were new homes.
The rolling 12-month median sales price for Gem County home sales was $489,875 in November 2022, a 33.4% increase from the year before. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price to get a better idea of the overall trends.
With 24 closings last month, the number of home sales decreased 14.3% compared to the same month a year ago, marking the sixth consecutive month of year-over-year declines. Of those sales, 18 were existing/resale homes and six were newly constructed homes. There were 30 pending sales — properties with an accepted offer that are expected to close within 30-60 days — a decrease of 43.4% compared to November 2021.
Higher mortgage interest rates, combined with the swift home price appreciation in the last several years, have decreased purchase power for buyers and lessened demand. As a result, some buyers have made budget adjustments and others have pressed pause on their home search. To attract the buyers who remain in the market, sellers are adjusting prices accordingly and many are offering buyer incentives like closing cost credits to buy down the interest rate.
With lessened demand, listings have spent more time on the market, averaging 58 days in November 2022 compared to 32 days a year ago. These longer market times have allowed more housing inventory to accumulate, giving buyers more options to choose from. There were 113 available homes for purchase at the end of the month, an increase of 34.5% compared to November 2021.
Additional information about trends within the Boise Region, by price point, by existing and new construction, and by neighborhood, are now available here: Ada County, Elmore County, Gem County, and Condos, Townhouses, and Mobile/Manufactured Homes Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.
Ada County
Canyon County
Elmore County
Gem County
Condos…
City Statistics
BRR is no longer able to access the resource we were using for these reports, so the City Statistics report has been retired for the time being. We apologize for any inconvenience.
Download the latest (print quality) market snapshot graphics for Ada County, Ada County Existing/Resale, Ada County New Construction, Elmore County, and Gem County. Since Canyon County is not part of BRR’s jurisdiction, we don’t publicly report on Canyon County market trends. Members can access Canyon County snapshots and reports in the Market Report email, or login to our Market Statistics page. Boise and Owyhee County snapshots can also be accessed on our Market Statistics page.
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The data reported is based primarily on the public statistics provided by the Intermountain MLS (IMLS), a subsidiary of Boise Regional REALTORS® (BRR). These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance. If you have questions about this report, please contact Cassie Zimmerman, Project Manager for Boise Regional REALTORS®. For notes on data sources, methodology, and explanation of metrics, visit boirealtors.com/notes-on-data-sources-and-methodology.
If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.
Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, represents real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.
“REALTOR®” is a federally registered collective membership mark which identifies a real estate professional who is member of the National Association of REALTORS® (NAR) and subscribes to its strict Code of Ethics.
