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 of June 2020, check out our blog post.
All market data referenced in this post was obtained by Boise Regional Realtors.
