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.
All market data in this blog is provided by Boise Regional Realtors.
