Ada & Canyon County Market Trends May 2020
Updated: May 14, 2020
COVID-19 IMPACTS ON THE IDAHO REAL ESTATE MARKET
Idaho’s mandated STAY-AT-HOME guidelines in place for over a month has led many to wonder about the impact this has had on the real estate market in The Treasure Valley. While there have been some changes, overall Ada and Canyon County Markets are still going strong. Here’s the latest:
Prices are still hitting record highs. In April 333 single-family homes in Boise sold with a median price of $350,000 compared to April of last year which averaged $324,000. That’s an over 7% increase from April 2019. The graph for Ada County above shows Average sold price YTD compared with previous years.
Canyon County also increased in price compared to the same time last year. In April 2020 there were 469 single family homes sold with a median price of $270,000 compared to April 2019 with 409 sales with a median sales price of $234,000. That's a 15% increase in just one year!
Low inventory and high demand. The most significant factors of home prices are supply, demand, and mortgages rates. The current supply is lower than it’s been in decades. In Ada County, the population has grown by nearly 100,000 in the past ten years leading to a dramatic increase in demand. Another contributor to high demand is the lowest mortgage rates in history.
ADA COUNTY MARKET TRENDS
CANYON COUNTY MARKET TRENDS
COVID-19 impacts the sale of certain homes. In April there was a 20-30% decline in homes going under contract, with price cuts and more days on market, especially lower-priced and the highest priced homes. This could be due to the fact that COVID-19 has affected many lower-priced home buyer’s abilities to purchase either due to loss of employment, or stricter regulations on obtaining financing. Higher-priced homes have been impacted in that many of those buyers may have lost money in their 401Ks or had a major shift in employment.
Virtual Real Estate. For out-of-state buyers, virtual tours became necessary as travel restrictions are still in place. With canceled open houses local buyers are viewing homes virtually and reducing the number of homes they visit in-person. Additionally, the current situation has pushed the industry to nearly all-virtual transactions. Even with a few bugs to work out, it has never been easier for sellers to show and sell their property. There are also plans to implement paperless closings via the SECURE Notarization Act. Eliminating the formal "closing" on a home is the last step to achieve a truly paperless real estate transaction.
Examining past recessions along with the current situation we can expect minimal changes to home pricing this year. However, we can look for a return to a more balanced market meaning homes selling in 3-4 months, rather than selling in a week or even days as we’ve seen for the past several years in The Treasure Valley. As Idaho slowly reopens and social distancing becomes more the norm buyers and sellers should be prepared to be patient. We should expect mortgage applications, showings, and even closings to take longer than in the past.
Curious about your home’s market value in the current market? Would you like to know the best/safest and most effective way to sell or invest in real estate during the pandemic? Set up a free virtual consultation with Jennifer Louis, Real Estate Agent. www.welcometoboiseandbeyond.com / email@example.com or by phone: (208) 509-9122