The Boise metro real estate market continues to climb — and the pace of sales is again speeding up. All while interest rates are quickly increasing, and the cost to rent a place is also at record highs.
It’s not new, but it bears repeating: living in the Treasure Valley continues to get more expensive.
The latest home sales data, for April, from the Intermountain Multiple Listing Service shows the median price of a home in both Ada County and Canyon County again high a record high.
On the Ada side, the median price jumped nearly 3.5% from last month — and a 42% jump from just a year ago, landing at $595,000. Canyon County prices are increasing even faster, up 5.2% from the last month and up 58.2% from a year ago, with a median of $476,500.
The median number is the “halfway point” of all homes sold – half the houses sold for more, and half sold for less.
The pace of home sales has also picked up, moving even faster than the month before. The average listing had a deal in place in 19 days in Canyon County and 16 days in Ada County, slightly faster than in March.
This is a much quicker pace than just a few months ago. In February the average listing went pending in 37 days in Ada Co. and 42 days in Canyon Co.
Supply, demand and price out of sync
The number of homes for sale (supply) did pick up, even though they are getting snapped up quickly and going for record prices. A total of 1,587 houses were for sale as of the last day of April, that’s the most since October of 2021 – and more than double the number of houses for sale on the same date a year ago.
The number of homes that actually sold (demand) is down from this same time a year ago. The MLS data shows 815 single-family homes sold in Ada Co. in April, 2022 – compared to 982 in April of 2021, a decrease of 17%. The number of homes sold in Canyon dipped less than two percent from last year, with 496 houses sold.
Said in a simpler way: the supply is up, the demand is down, but the price is also up. It’s unclear from the data why the price isn’t following the ‘law’ of supply and demand.
With interest rates continuing to climb nationally, housing affordability continues to dip. The Federal Reserve raised the prime rate by .5% last week, and indicated more rate increases are likely with inflation continuing to rage.