Home prices in Ada County were up again in September — a result of the competitive housing market which is being fueled by low mortgage rates and limited supply compared to demand.
The overall median sales price, including existing and new home sales, reached $409,945 last month, an increase of 17.2% year-over-year.
According to Freddie Mac, the average 30-year fixed rate mortgage was at 2.9% in September, down 19.7% year-over-year when compared to the September 2019 mortgage rate of 3.61%. While the actual interest rate a borrower receives is based on a variety of factors, the very low rates, as well as increasing rents (as reported by BoiseDev) may be encouraging more people to consider a home purchase.
One way to measure that supply vs. demand relationship is with the Months Supply of Inventory metric (or MSI) with a balanced market tracking at 4-6 months of supply. In September, MSI was at just 0.4 months, meaning, if no additional homes were listed for sale, Ada County would run out of homes to buy in under two weeks.
Homes are also going under contract faster — another indicator of a competitive market. In September, existing homes spent an average of only 17 days on the market, compared to 26 days in September 2019.
REALTORS® are a homebuyer’s best resource to help navigate inventory options and offer strategies, as well as help sellers’ field multiple offers or coordinate a simultaneous sale and purchase. They can also help connect consumers with lenders and other financial resources. Whether you are just getting started and you need help finding a lender or down payment assistance, or if you’re pre-approved and ready to find your next home, a REALTOR® can provide valuable expertise and guidance.
Home sales were up in Elmore County in September 2020 with 57 homes closing and 63 homes going under contract, for increases of 9.6% and 12.5%, respectively, from the year before. However, inventory levels dropped year-over-year for the month in a row, leaving 26 homes available for purchase at the end of the month, down 70.5% from September 2019.
The median sales price reached $230,425 — an increase of 22.0% 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 buyer demand outpacing the supply of homes for sale.
To better understand the impact of demand and supply, we use the Months Supply of Inventory metric (or MSI). This compares pending sales (or homes under contract) which measures buyer demand and inventory (or homes for sale) which measures supply. A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. In September 2020, for both existing and new construction combined, MSI was at just 0.5 months, meaning, if no additional homes were listed for sale, Elmore County would run out of homes to buy in approximately two weeks.
This is a slight uptick compared to July and August of 2020 when MSI was at 0.4 months, but still clearly shows the imbalance in the supply vs. demand relationship.
Buyer demand is high, even as we head into the winter months. Homeowners are realizing great values for their homes, so if you’re thinking about selling, don’t feel like you have to wait until spring. Talk to a REALTOR® to find out what your home might be worth and learn about your options.
Demand for Gem County homes continued to outpace the supply of available properties for sale, which drove up prices. In September, the median sales price was $282,533, up 20.8% 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.
There were 29 closed sales, up 31.8% compared to the same month last year, and 35 homes available for purchase at the end of the month, down 45.3% compared to September 2019.
The Months Supply of Inventory metric (or MSI) is helpful in illustrating the supply vs. demand dynamic, as it compares pending sales (buyer demand) to and inventory (supply). A balanced market — not favoring buyers or sellers — is between 4-6 months. In September 2020, for both existing and new construction combined, MSI was at just 0.8 months, meaning, if no additional homes were listed for sale, Gem County would run out of homes to buy in less than a month.
Buyer demand is high, even as we head into the winter months. Homeowners are realizing great values for their homes, so if you’re thinking about selling, don’t feel like you have to wait until spring. Talk to a REALTOR® to find out what your home might be worth and learn about your options.
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, City Statistics, 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
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 as well as weekly snapshots in the Market Report email, or login to our Market Statistics page.
In addition to the market reports and analysis BRR sends members each month, we send press releases to local media contacts in order to promote the local market expertise that REALTORS® bring to every transaction. BRR’s market report data and/or interviews are featured in the following articles. Feel free to share with your clients, adding your own analysis and comments.
- Ada Co. Housing Market Keeps Climbing — Fast from BoiseDev
- Boise livability still tops charts despite rising home prices from Idaho Business Review
# # #
Boise Regional REALTORS® has a variety of resources about mortgage assistance, unemployment assistance, how to avoid scams, and more, under the Resources for Property Owners and Resources for Renters sections of BRR’s Coronavirus Response website.
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 boirealtors.com/connect/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.
REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
