September 2020 - Ada & Canyon County Market Update
Those summer temperatures are finally starting to drop, yet (forgive me for sounding like a broken record) real estate prices in Idaho are not! Inventory is still at record lows, home prices continue to soar, the Valley continues to grow and mortgage rates are still unbelievably low. Well, that pretty much sums it up...enjoy Fall, everyone....
No, hang on a minute...for those considering selling or buying or just interested in the real estate market in the area, there were some new interesting stats and records for Ada and Canyon County that might be worth the 1 minute it will take to read this post.
In August Ada County hit a record with the median sales price reaching $400,000.
The City of Boise alone increased by nearly $10,000 in one month with the new median price hitting a record $379,900.
Canyon County had a major increase with the median price in August of $309,900 compared to one year earlier the median price was $250,000.
Inventory in Nampa went to a record low two week supply in August with only 119 homes for sale compared to 400+ homes for sale the same time the year before.
Mortgage interest rates remain under 3% going for over six weeks.
The charts below demonstrate the increase in average price for existing homes in both Ada and Canyon County. Please note: The above-mentioned market statistics demonstrate median sales price and include new construction.
Ada County Average Home Price Year Over Year as of August 2020 (courtesy of KW Realty Boise Market Dynamics)
Canyon County Average Home Price Year Over Year as of August 2020 (courtesy of KW Realty Boise Market Dynamics)
Home prices continue to increase throughout the Treasure Valley due to the record low inventory in the area. With a record less than a 2 week supply of homes for sale in both Ada and Canyon County we can expect prices to continue to increase throughout the rest of the year and to remain a seller's market. To have a balanced market, meaning the market is not in the favor of the seller nor the buyer we would need at least five or six months' worth of inventory or roughly 5,000+ homes available for sale during those months. As the charts below demonstrate we are nowhere near that balance.
Ada County Market Trends in August 2020 (courtesy of KW Realty Boise Market Dynamics)
Canyon County Market Trends in August 2020
The Price Trend Will Continue Throughout 2020
The pandemic has been one of the major factors in the decrease of homes for sale as homeowners have put their plans on hold to sell their homes and wait out the virus. While on the other hand, many home buyers are leaving densely packed, more expensive cities in search of more space at less cost. Southern Idaho has been one of the most sought after cities to move to for several years and even more so with the pandemic, as it offers less expensive homes compared to many of its neighboring states and space and natural setting many are seeking.
With the market as it is, one would expect any home for sale would be flying off the market in record time, yet that's not always the case. The homes for sale with multiple offers, selling over asking price and, in record time are those that are priced competitively for the state they are in or they offer features that are of particular interest in the current market. For example, one of the most desirable features a home can provide is a designated space for a home office. With so many companies allowing employees to work from home on a permanent status now, having a comfortable space in the home to work has become imperative. RV Parking and a spot to store all those outdoor activities are also a big seller in our area. With more people looking to camping as a source of recreation during the pandemic having adequate storage for those toys has become a must.
We can expect home prices to continue to increase monthly as we reach the end of 2020 and even into 2021. If interest rates remain low more buyers may begin their home search or start hunting for a larger home that meets some of their new needs that the pandemic created. As we approach winter we will continue to see a decline in homes for sale as we typically do during the colder months in the Valley and this will also contribute to more bidding wars on desirable homes for sale in the area.
If you would like to know more specific details about the current real estate market in Ada or Canyon Counties please contact firstname.lastname@example.org for more details.
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.