Idaho has reopened in terms of the COVID-19 pandemic. Although we are still under a mask mandate in Ada County, life has resumed a “new normal” for most people here in the Treasure Valley. Home prices continue to be driven by a shrinking supply of existing homes available for sale and low mortgage rates have increased buyer’s purchase power.
ADA COUNTY
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.
CANYON COUNTY
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.
Although the entire state of Idaho is still under COVID-19 restrictions this August, life has resumed a “new normal” for most people here in the Treasure Valley. Our home prices continue to be driven by a shrinking supply of existing homes available for sale compared to demand, more new homes selling at ever higher prices, increased purchase power due to low mortgage rates, and now, buyer activity being compressed into a shorter time period as a result of COVID-19.
ADA COUNTY
The median sales price for all homes sold in Ada County in August reached $400,000, up 12.7% year-over-year, surpassing the previous high in July 2020 of $390,000. The number of existing homes for sale has trended down for years now, and there were only 239 existing homes available for purchase at the end of August. This is a dramatic decrease of 72.1% compared to the same month last year, and a record low since BRR began tracking the metric in May 2006. To further illustrate this imbalance, the months supply of inventory for existing homes in Ada County was also at a record low of 0.3 months as of August. For reference, a balanced market would be between 4.0-6.0 months. This lack of inventory is putting tremendous pressure on existing home prices, which reached a median sales price of $385,500 in August.
Another factor impacting prices is the mix of sales. With fewer choices among existing inventory, many homebuyers are purchasing new construction, increasing the demand in that segment. In August, new homes made up 32.9% of all closed sales, at a median sales price of $444,900. In addition to greater buyer demand, new construction prices 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.”
Third, the historically low mortgage interest rates are allowing buyers to purchase at higher prices points. For comparison purposes, the rate in August 2006 (the market’s previous peak) was at 6.5% versus 2.9% in August 2020. This has kept monthly payments at roughly the same as what they were during the previous peak in 2006, despite the increase in home prices.
Finally, after a brief COVID-related slowdown earlier this spring, home sales rebounded in August with 1,251 homes closing during the month, up 18.9% compared to August 2019. Interestingly, closed sales year-to-date versus the same period last year were nearly even, with 7,737 and 7,547 sales, respectively.
CANYON COUNTY
Canyon County is experiencing similar numbers to Ada County. The low inventory has caused the median sales price to rise 14.6% to $282,000 while new construction pricing has sky rocketed to $331,490. Canyon County has been known as the area to move to if you’re looking for more house for less money. However, as inventory continues to drop and pricing rises, Canyon County is becoming just as competitive of areas of Ada County. Towns like Nampa and Caldwell are growing rapidly.
Off-market new inventory is allowing us to have consistent sales numbers despite low inventory. With so many buyers looking at new construction, builders can sell homes that are not yet built, and therefore, not yet reflected in the IMLS as inventory. In August, nearly 25% of newly built homes sold were not previously listed on the MLS showed up as a closed sale. This should give hope to homebuyers that while inventory is low, there are options available.
Identifying new construction opportunities, in addition to options in the existing market, is just one more way a REALTOR® can bring value to your home search. If you’re ready to make a move, contact ustoday!
Here is your market update for the Boise area real estate market for the month of July 2020 – featuring both Ada and Canyon counties. Although we are still experiencing restrictions around our community due to COVID-19, most restrictions are no longer affecting the real estate market directly. Agents can freely show homes and host open houses as long as social distancing protocols are followed. The true impact on our market is coming from sellers who are hesitant to list their properties and buyers who are experiencing lending troubles due to job loss or impacted income. However, overall, the Treasure Valley real estate market is still going strong.
For more information on Idaho’s COVID-19 guidelines and protocols, please visit the state’s website.
ADA COUNTY UPDATE
In July, the median sales price for homes sold in Ada County reached $390,000, inventory bottomed out at 743, closed sales hit a high mark at 1,402, and pending sales soared to 2,046. These were all new records since 2004 and the results of the spring and summer markets being compressed into a shorter time frame after COVID-related slowdowns in March and April.
At $390,000, the median sales price was up 11.7% compared to July 2019, and continues to be driven by the mix of sales. New homes made up 31.1% of all closed sales in July, at a median sales price of $425,000, which was up 9.1% from the same month last year. The median sales price for the existing segment rose as well, reaching $380,000 in July, an increase of 15.2% year-over-year. Looking more closely at the mix of sales, we see a drop in the number of homes listed and sold between $200,000-$299,999, and sharp increase in those priced above $500,000, which pushed up the median for the segment and market overall.
At the end of July, there was a record low 743 homes available for sale in Ada County, down 56.8% year-over-year. Of those listings, 337 were existing and 406 were new construction. As mentioned in previous reports, we expected a rebound in closed and pending sales due to pent up buyer demand even before the pandemic hit, so the July sales numbers did not come as a surprise. There were 1,402 home sales in Ada County in July, up 22% compared to the year before and the highest number of sales on record since we began tracking the metric in 2004.
CANYON COUNTY UPDATE
There are a number of variables at play when it comes to home prices, but the bottom line is that buyer demand continues to outpace the supply of homes for sale. The existing homes that are available for purchase are often being listed and are selling at higher prices than in what we saw in 2019. Our market has faced low inventory for years now, and the ongoing COVID-19 pandemic and recession have put even more pressure on the supply/demand relationship.
And don’t expect things to slow down just yet: Pending sales hit an all-time high of 2,046 in July, which will be reflected in closed sales data in the coming months. The concept of a “traditional buying or selling season” has been forgotten in 2020. As the market continues to change, buyers and sellers are finding it is more important than ever before to rely on the guidance and expertise of a REALTOR®.
If you missed the market update for the month ofJune 2020,check out our blog post.
Here is your market update for the Boise area real estate market for the month of June 2020. COVID-19 restrictions went into place on March 25th in the state of Idaho. April and May were big months in terms of how Coronavirus was impacting the real estate market. Idaho is currently holding steady in Stage 4 of Gov. Brad Little’s Rebound Idaho plan.
ADA COUNTY UPDATE
Following two consecutive months of year-over-year declines, home sales in Ada County were up 3.4% in June 2020 compared to June of 2019. Pending sales, or properties with an accepted offer that should close within 30-60 days, were also up 17.0% year-over-year. This rebound in closed and pending sales was due to pent up buyer demand and the fact that our market was strong before the pandemic hit our region. While our local housing market may continue to be impacted by the ongoing COVID-19 crisis on some level or another, this uptick in sales and homes under contract is a good sign.
Home prices also increased in June with the overall median sales price reaching a new high at $375,000. This was 6.3% higher than in June of 2019, and less than a percent higher than the previous high from April 2020 of $374,900. Prices continue to be driven by a lack of existing supply compared to demand, and more than one-third of all home sales represented by new construction.
One way to measure the supply vs. demand relationship is by using the Months Supply of Inventory metric (or MSI), which compares the number of sales (buyer demand) to available inventory (supply). A balanced market — not favoring buyers or sellers — is between 4-6 months. In June 2020, the overall months’ supply of inventory was at just 1.0 months — the lowest number we’ve seen since January 2016 when we began tracking MSI. Inventory is constricted even further in the existing/resale segment with only 0.6 months’ supply in June.
CANYON COUNTY UPDATE
Overall, home sales in Canyon County were up 16.3% from June 2019. The median sales price in Canyon County is currently $287,900 compared to that of $247,608 this time last year. Pending sales are also on the rise, up 25.4%. Canyon County is in the same boat as Ada County in terms of low inventory. We saw just 0.8 months’ supply of inventory in June. Until inventory numbers start to rise into that 4-6 months’ supply mark, the Treasure Valley will be sitting in a seller’s market.
Inventory is needed across the board, but demand is especially high for existing homes. If you’re considering selling but want to limit interactions with the public, Data Driven Real Estate is keeping our seller’s health and safety in high regard. 3D virtual tours are now including in every listing in additional to professional photography, at no cost to our seller’s. We have also implemented tactics to minimize foot traffic, provide personal protective gear, and other ways to keep yourself and others safe.
If you missed last month’s market update, you can read up on the May statistics on our blog.
Here is your market update for the month of May 2020 in the Boise area real estate market. Please keep in mind that several of the restrictions placed on our community, as well as real estate professionals, happened on March 25th, 2020. Rebound Idaho began in May of 2020, so this data reflects the height of COVID-19 in Idaho.
ADA COUNTY
For the second consecutive month, home sales in Ada County were lower than the same month in 2019, as REALTORS® and consumers heeded Idaho’s stay-home order for any non-essential transactions. Overall, closed sales were down 29.7% compared to May of 2019, but as this is a backward-looking metric, it primarily reflects buyer activity during March and April when more restrictions around showings and open houses were in place. However, pending sales, or properties with an accepted offer that should close within 30-60 days, were up 4.7% in May 2020 compared to last year, and up 25.4% compared to April. The 1,957 pending properties, which were almost evenly split between the new construction and existing/resale, will be reflected in the sales data in June and July.
While the Ada County housing market has indeed been impacted by the COVID-19 crisis, we believe the stage is set for a rebound in sales, due to the strong market position at the beginning of the year and continuing buyer demand compared to supply.
The median sales price in May 2020, for new construction and existing/resale combined, was $360,450, up 6.0% year-over-year but down 3.9% from the record high in April of $374,900. This month-over-month dip was primarily driven by the mix of sales. Previous record highs were the result of new construction making up a large share of closed sales. While still significant in May at 31.8%, the share of new construction sales was down from 35.0% in April, helping to bring down the overall median sales price for the county.
CANYON COUNTY
Canyon County is still seeing a steady rise in home prices as more and more home buyers venture out to towns like Nampa and Caldwell. However, like Ada County, we did experience a decrease in the number of homes sold (-24.9% for existing resale) from this month last year. We believe this is largely due to COVID-19 restrictions. Now that Idaho is in stage 4 of reopening, we believe this number will quickly bounce back.
Whenever you’re ready to buy or sell a home, REALTORS® are here to help. Across the valley, brokerages and builders are taking extra precautions to protect clients. Additionally, REALTORS® have access to local, up-to-date market data, and are able to customize it to your unique situation. Whether you are looking to BUY or SELL, Data Driven Real Estate is here for you.
Here is your market report for the Boise area real estate market for the month of April 2020. Please keep in mind that several of the restrictions placed on our community, as well as real estate professionals, happened on March 25th. Therefore, this data is a reflection of the real estate market during the height of COVID-19 in Idaho.
With the threat of COVID-19, Idaho entered a stay-home order on March 25th, 2020. Real estate dealings were deemed an essential business under Gov. Brad Little’s order, however REALTORS® and real estate agents had to make adjustments to business practices to account for social distancing requirements. This meant no longer hosting traditional open houses for listings and property showings looked a lot different – most happened virtually through video walkthroughs and 3D virtual tours. However, keeping real estate essential during this time ensured that current transactions were able to close, avoiding potential financial hardships for many families.
ADA COUNTY
There were 761 home sales in April 2020, down by 19.5% compared to the same month last year. This dip in sales was expected as REALTORS® and consumers heeded Idaho’s stay-home order for any non-essential transactions. Many agents noted that clients who did not have to buy or sell immediately were able to “press pause” for a bit in order to help limit unnecessary in-person interactions as the stay-home order intended.
Despite April’s dip in sales, the overall median sales price in Ada County reached a new record of $374,900, up 13.6% year-over-year and up 2.2% from March 2020. Such as last month, when the share of sales that are new construction increases, the overall median sales price rises, as well. In April, 35.0% of closed sales were for new homes and the segment had a median sales price of $416,287, compared to $345,000 for existing/resale. With the overall months’ supply of inventory sitting at just 1.7 months, we do not expect any downward pressure on home prices, as home buyer demand continues to outpace supply. Note: a balanced market is between 4-6 months of supply.
CANYON COUNTY
The number of homes sold in Canyon County has increased by 6.6% from this time last year at 483 homes sold in April 2020. New construction sales made of 184 of those homes. The median sales price for April was $273,234 which still makes areas like Nampa and Caldwell more affordable for home buyers. The average days on market for homes within Canyon County was 37 days, up 5.7% year-over-year. Despite home prices being on the rise in Canyon County, we did see a drop in the number of available homes – there were just 669 homes available to purchase within the county making for a 24.7% decrease over last year.
Overall, we expect sales to rebound over the coming months as the state moves through its phased re-opening plan and people restart the home search or sales process. The stay-home order and COVID-19 seem to have had less of an effective on the real estate market in the Treasure Valley than originally throughout, especially compared to the nation-wide concern. Several REALTORS® are comparing the end of March and April to just “an extremely slow month.” However, only time will tell if the market experiences an heightened effects.
Miss last month’s report? Click here to read the market report for March 2020. For weekly updates follow us on Instagram: @datadriven208
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