ADA COUNTY HOMEBUYERS HAD MORE OPTIONS IN SEPTEMBER
Key Takeaways:
- Additional new construction inventory and a slight boost in existing inventory gave buyers more options in September than any month in 2019 so far, extending the homebuying season into the fall.
- Despite this increase in inventory, demand is still outpacing supply and the median sales price was $349,994 in September, up 9.7% from the year before but down 1.4% from August 2019.
- With more inventory available and low interest rates, fall may be a great time to buy for those who are ready to make a move.
Analysis:
Housing supply or inventory typically peaks in the summer months and then drops to lower numbers in the fall and winter. However, since 2017, the highest number of available homes for sale has been in September, rather than July or August, extending the homebuying season.
This shift can be attributed in large part to a 10.3% increase of new construction inventory in September 2019 compared to August 2019. New construction listings made up nearly half of the total inventory in September with 887 homes available for sale at the end of the month. Existing inventory increased 3.6% from the month prior with 889 homes available for purchase. As a result, these market conditions have started to blur the seasonality trend in the last few years.
However, despite this increase in inventory, demand is still outpacing supply. The median sales price was $349,994 in September, up 9.7% from September 2019, but down 1.4% from August. However, the higher home prices are being tempered by low mortgage rates, with the average 30-year fixed-rate mortgage at 3.64% on Thursday, September 26, 2019, according to Freddie Mac.
Overall, more housing supply is needed at all price points and those considering selling could still fetch a premium price for their home this year. And if you’re looking to buy, now is a great time to take advantage of low rates and you’ll have more options when house shopping with the added inventory. However, there’s really no ‘perfect time’ to buy or sell a home — it is more important that you consider what works for you and your finances.
SEPTEMBER 2019 ELMORE COUNTY HOUSING MARKET UPDATE
Housing inventory was up in Elmore County with 90 homes available for purchase at the end of September, an increase of 18.4% from August. However, inventory is still down year-over-year with a decrease of 15.1% from September 2018, continuing the now 56 consecutive months of year-over-year declines in inventory.
Sales were also up in Elmore County, with 52 homes sold in September, an increase of 4.0% from the month before, and a 40.5% increase year-over-year. 55 homes went under contract, or “pending”, in September, a decrease of 5.2% from the month before and a 20.3% decrease year-over-year.
The median sales price reached a record high of $188,225 — an increase of 23.0% compared to the same time last year. 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. Prices continue to be driven by home buyer demand and persistently low inventory.
To better understand the impact of demand and supply, we use the Months Supply of Inventory (MSI) metric. This compares pending sales (or homes under contract) which measures buyer demand and inventory (or homes for sale) which measures supply. In September 2019, there were 1.6 months of supply available. A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply.
While demand is still outpacing supply in the area, the small bump in inventory this month provides buyers with more options when looking for a home to purchase. If you are looking to buy, work with your REALTOR® to explore some of the new options now available in your area.
SEPTEMBER 2019 GEM COUNTY HOUSING MARKET UPDATE
As of September 2019, the median sales price for Gem County was at $239,260, an increase of 21.4% over the same period last year. We use a rolling 12-month median sales price to get a better idea of the overall trends due to the smaller number of transactions that occur in the area. Home prices have been driven by persistently low inventory versus demand.
There were 22 homes sales in September, down 38.9% from September 2018, and down 35.3% from last month. This left 64 homes available for sale at the end of the month, down 5.9% year-over-year.
Pending sales (or homes under contract) measures buyer demand, while inventory (or homes for sale) measures supply. The relationship between these two metrics is reported as Months Supply of Inventory (or MSI), which was at 2.2 months in September 2019, up from 1.6 months a year ago.
A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.
Inventory was down compared to last year, but we did see a 23% increase from the month prior. This is encouraging since the Gem County housing market needs more inventory to help bring the market back into balance and give buyers more options when searching for a home. If you’re considering selling, now would be a great time to talk to your REALTOR® about your options.
RESOURCES:
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 City Data Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.
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 report on Canyon County market trends. Members can access Canyon County snapshots and reports in the Market Report email, or reach out to us directly at cassie@boirealtors.com or annie@boirealtors.com.
# # #
This report is provided by Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, representing 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.
If you have questions about this report, please contact Cassie Zimmerman, Director of Communications for Boise Regional REALTORS®. If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.
The data reported is based primarily on the public statistics provided by the IMLS. 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. The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings).
