ADA COUNTY REAL ESTATE MARKET CONTINUES TO HIT NEW RECORDS
The median sales price for homes sold across Ada County has reached a record breaking $400,000. This is a staggering year-over-year increase of 12.7%, and surpasses the previous median sales price record of $390,000 (recently set in July 2020).
Simply put, demand for real estate across the valley is far surpassing the supply of pre-existing homes listed for sale. To further illustrate the situation with supply (inventory), our real estate market currently has a Months Supply of Inventory (MSI) of 0.3 months. MSI is used to quantify how many months it would take a market (in its current condition) to absorb the entire active inventory . For reference, in a balanced market (meaning neither a strong Seller's or Buyer's Market), MSI is typically between 4 - 6 months. This lack of inventory is putting tremendous pressure on home prices.
In addition to the basic supply and demand situation noted above several other additional factors impacting prices include:
- Low mortgage rates which have increased homebuyers buying power.
- Mix of sales - with so few resale homes being listed on the market, many homebuyers are purchasing new construction, increasing the demand in that segment. This in turn impacts new construction prices, which are being driven by rising lumber prices. According to the National Association of Home Builders, “The price of lumber has staged a staggering increase in recent months, rising roughly 80% since mid-April… [which is adding] thousands of dollars to the cost of a typical newly-built home.”
- COVID-19's impact on compressing the buying timeline (the market strongly rebounded from the brief slowdown earlier this spring and now sits at an nearly even number of year-to-date closed sales - 7,737 and 7,547 sales, respectively).
Summary: If you group together both existing and newly constructed single-family homes and compare those numbers to the same month one year ago, inventory plummeted by an incredible 64.5% and the median sales price increased by 12.7% (and now sits at $400,000). It's important to note that even with such low (record-breaking) inventory, more homes sold (a notable increase of 18.9%).
If you then examine just existing/resale homes (and remove all the newly constructed homes from the statistics) the general year-over-year trends noted above remain similar - but the decrease in inventory is even more dramatic - down an incredible 72.1% and they are flying off the market (selling in, on average, just 19 days)! Keep in mind that last year at this time we thought inventory was low - and now it's significantly lower. If you're considering selling a home or property... let's chat!
And finally, if you look at just newly constructed homes, the overall trend remains pretty consistent. New homes are selling for a median price of $444,900 and there are substantially fewer of them available than there were one year ago (inventory is down an incredible 56.3%) - and yet, 29.2% MORE are selling.
Treasure Valley Housing Markets
Average Sold Price (August 17, 2020 - September 17, 2020)
- Boise: $436,162
- Eagle: $691,070
- Meridian: $427,979
- Star: $467,870
- Garden City: $323,205
- Kuna: $354,472
- Middleton: $402,134
- Nampa: $336,670
- Caldwell: $321,515
View all of our featured listings at Jonna Weber Premier Properties, or click on any of the houses below to learn more about the property.
If you've been considering a move, this would be a great time to connect with us to discuss the current value of your home and to see what's newly available on the market. To discover what your home is currently valued at, simply click here and we will happily provide you with an obligation-free, complimentary home or investment property evaluation.
If you’re hoping to buy, keep in mind that low inventory certainly isn’t the same as no inventory. There are options available, and rates are making mortgage payments more manageable. Click here or call us to discuss what you're looking for. Otherwise, keep reading to learn more about what's happening in Ada County's real estate market.
P.S. Should you hear of anyone else looking to Buy or Sell a home, we ask that you please do two things. First, please tell them about your experience with us. Next, simply hit the reply button to this email and tell us about them! We would love to be of service!