August 2020 - Ada & Canyon County Market Update
Home prices in Ada and Canyon Counties continue to set record highs. Inventory continues to decrease in both counties along with record low interest rates both of which are contributing to driving up home prices.
During July in Ada County, the median sales price for new construction and existing homes increased by nearly 12% from a year ago to $390,000.
The City of Boise alone went up over 10% from a year ago with the median price hitting a record $370,000.
Canyon County saw a huge increase in both new construction and existing homes as their median sales price in July was $300,000, a nearly 20% increase from last year.
To visualize the increase check out the charts below to see the average price increase year over year in both Ada and Canyon Counties just for existing homes.
Ada County Average Home Price Year Over Year as of July 2020 (courtesy of KW Realty Boise Market Dynamics)
Canyon County Average Home Price Year Over Year as of July 2020 (courtesy of KW Realty Boise Market Dynamics)
As earlier mentioned one of the major factors driving up prices is the low inventory of both existing homes and new construction for sale. We are at just over a half month of inventory available in Ada County and exactly a half month of inventory in Canyon for existing homes.
If you review the two charts below (courtesy of KW Realty Boise Market Dynamics) you can see the dip in active listings in July compared to the previous year. July 2019 had 951 homes on the market in Ada County and a year later only 369 homes on the market.
Ada County Market Trends in July 2020
Canyon County Market Trends in July 2020
The demand hasn't decreased since 2019, in fact COVID-19 is drawing even more people to the affordable housing here compared to neighboring states. Also, the low interest rates are allowing renters for the first time to be able to afford to purchase a home which is contributing to the high demand for housing in the Treasure Valley which is up nearly 30% from a year ago. So, take less than half the homes available to purchase on the market compared to a year ago and add in 30% more buyers shopping for a home and voila, record high home prices and a very competitive market.
Buyers Must Understand The Competitive Market Before Shopping
For buyers to have success purchasing a home in this market it's essential for them to understand the facts. With low inventory and an increase of buyers in the buying pool you can expect multiple offers on homes in desirable neighborhoods throughout Ada and Canyon Counties. Homes under $400,000 in sought after areas are often seeing 10 or more offers on a home. This means buyers need to bring their BEST offer to the table and act quickly. It's becoming more frequent to see offers from buyers who have only visited the home online or to waive protective contingencies such as inspections, appraisal, financing to make their offer more appealing to Sellers.
I've helped many buyers during this challenging market and have had tremendous success getting offers accepted on their first attempt. Check out this video tutorial on tips to buy in a sellers market to get an idea of how to succeed in buying a home in this market.
Unprepared Sellers Are Potentially Missing Out On Thousands When Selling.
Many of those considering selling their home may read the above trends and feel they can put their home on the market today with little effort and sell it for top $$$. Although low inventory means buyers may be less picky, the market shows that homes that have not been properly prepped are selling for less than their full potential, up to 5-10% less than a comparable home prepped to sell. Cleaning, staging, and prepping a home to sell are imperative if you are looking to get the best price on your home, and can be done with minimal effort and cost. Sellers should keep in mind that even if they get a full asking price offer on their home this can often be negotiated down during the inspection period if repairs come up on the inspection report. Ideally, sellers should take care of as many repairs before listing their home to ensure they don't find themselves having to reduce the price because they are already so far into the sale.
Jennifer Louis is the owner and operator of Welcome to Boise and Beyond, a full service real estate company dedicated to those relocating to the area and locals looking to sell their home and maximize value. Jennifer writes and produces with her team weekly updates on the real estate industry in Boise and the surrounding Treasure Valley. Her blog contains insights into some of Boise's best local businesses, places to visit and neighborhoods to discover. If you'd like to schedule a free consultation please call: (208) 509-9122 or via email.