The median sales price for homes in Ada County was $561,500 in October, up 4.0% from the month prior and 5.4% higher than October 2021. Until last month, there have been month-over month declines in the median sales price since the peak of $602,250 in May 2022. We haven’t seen a year-over-year decline in the overall median sales price since October 2014.
Higher mortgage interest rates have decreased purchase power for buyers and cooled demand, causing some buyers to make budget adjustments and others to press pause on their home search. According to Freddie Mac, retrieved from FRED, Federal Reserve Bank of St. Louis, the average 30 year fixed-rate mortgage was 7.08% on October 27, 2022, more than double the 3.14% average in October 2021.
With the steady incline in rates and dampened demand, why didn’t prices dip last month? While there were 32.5% fewer home sales in October 2022 than in 2021, there were still 670 home sales, and the mix of those sales gives us a clue as to why the overall median sales price didn’t budge much in October.
There are two primary segments to housing inventory — existing/resale homes, and new construction homes. New home sales made up 31.9%, or nearly a third, of all home sales in October. The median sales price for new homes was $657,500, while the median sales price for existing homes was $500,000, down 3.7% from October 2021. This significant share of new home sales pulled up the overall median sales price.
Due to rising mortgage interest rates, we’ve watched price growth decelerate on a monthly basis since May of this year. The fact that October didn’t bring any major changes, price wise, indicates home values are not likely poised to plummet, though we may see more adjustments to come. Sales have slowed but won’t disappear — regardless of market conditions, life continues to go on, and some life events require a move.
Buyers who were able to purchase this fall had more negotiation power than we’ve seen in years and used creative tactics, like using closing cost credits to buy down the interest rate, to combat higher monthly payments. With price growth slowing and more inventory to choose from, buyers have been able to snag existing homes at a lower price point than they would have a year ago, with the option to refinance down the road if interest rates go down.
The rolling 12-month median sales price for Elmore County home sales was $340,435 in October 2022, a 11.9% 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 50 closings last month, the number of home sales decreased 10.7% compared to the same month a year ago. Of those, 46 were existing/resale homes and four were newly constructed homes. There were 32 pending sales — properties with an accepted offer that are expected to close within 30-60 days — a decrease of 61.9% compared to October 2021, and the eighth consecutive month of year-over-year declines.
Higher mortgage interest rates and higher home prices have impacted monthly mortgage payments, causing some potential buyers to make budget adjustments, and others to press pause on their home search for the time being. This has resulted in a sales slowdown compared to what we’ve seen in the last few years.
With lessened demand, listings have spent more time on the market, averaging 38 days in October 2022 compared to 18 days a year ago. These longer market times have allowed more housing inventory to accumulate, giving buyers more options to choose from. There were 88 available homes for purchase at the end of the month, an increase of 25.7% compared to October 2021. Of those, 73 were existing/resale listings and 15 were new homes.
Even with gains in inventory, demand continued to outpace supply. Month’s Supply of Inventory (MSI) was at 1.7 months, meaning, if no additional homes were listed, the supply of homes would run out in less than two months. A balanced market, or one that doesn’t favor buyers or sellers, is typically between 4-6 months of supply.
Buyers who were able to purchase this fall had more negotiation power than we’ve seen in years and used creative tactics, like using closing cost credits to buy down the interest rate, to combat higher monthly payments. With price growth slowing and more inventory to choose from, buyers have been able to snag existing homes at a lower price point than they would have a year ago, with the option to refinance down the road if interest rates go down.
The rolling 12-month median sales price for Gem County home sales was $489,875 in October 2022, a 34.2% 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 29 closings last month, the number of home sales decreased 6.5% compared to the same month a year ago. Of those, 21 were existing/resale homes and eight 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 41.2% compared to October 2021, marking the 15th consecutive month of year-over-year declines.
Higher mortgage interest rates and higher home prices have impacted monthly mortgage payments, causing some potential buyers to make budget adjustments, and others to press pause on their home search for the time being. This has resulted in a sales slowdown compared to what we’ve seen in the last few years.
With lessened demand, listings have spent more time on the market, averaging 57 days in October 2022 compared to 37 days a year ago. These longer market times have allowed more housing inventory to accumulate, giving buyers more options to choose from. There were 128 available homes for purchase at the end of the month, an increase of 29.3% compared to October 2021.
The recent inventory gains have moved the Gem County housing market into what’s considered a “balanced” market, or one that has between 4-6 months of supply and does not favor buyers or sellers. Months Supply of Inventory (MSI) reached 4.2 months in October.
Buyers who were able to purchase this fall had more negotiation power than we’ve seen in years and used creative tactics, like using closing cost credits to buy down the interest rate, to combat higher monthly payments. With price growth slowing and more inventory to choose from, buyers have been able to snag existing homes at a lower price point than they would have a year ago, with the option to refinance down the road if interest rates go down.
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.
