If it seems like we’re a broken record on broken records – we are.
The real estate market in Ada County again hit a new all-time high in July, with the median price of a home in the market hitting $390,000. That’s a significant uptick from June, when the market also set a new record. The median price jumped 4% from June, and 11.7% from July of 2019.
The data comes from Boise Regional Realtors, the advocacy group for local real estate agents. The group said the latest records are due in part to a “compressed” selling season due to a slow-down in sales during March and April when stay at home orders related to COVID-19 kept many people from venturing out.
Ada Co. real estate reports from BoiseDev:
Newly-constructed houses in Ada County made up nearly a third of all sales in July – 31.1%. The median price for a newly-built house stands at $425,000. For existing homes, the median price hit $380,000 – up 15.2% from the prior year.
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Supply of homes for sale drops
One major factor driving prices up is a continued lack of supply. Just 743 homes were on the market in July, which BRR said is a record low since it began tracking in 2004. The number of houses for sale dropped by half from July of 2019.
“There are a number of variables at play when it comes to home prices, but the bottom line is that buyer demand continues to outpace the supply of homes for sale,” BRR president Michelle Bailey said. “Our market has faced low inventory for years now, and the ongoing COVID-19 pandemic and recession have put even more pressure on the supply/demand relationship.”
The agency said it doesn’t expect a slowdown – with pending sales (houses under contract that haven’t yet closed) hit an all-time high of 2,046 in Ada County in July. BRR said a traditional buying or selling season has gone out the window in the pandemic-impacted year of 2020.
Housing affordability continues to be a significant concern in the Boise-area economy. At the $390,000 median sales price, with 10% down payment and a 3.5 interest rate, a 30-year mortgage would cost $1,875 per month or $22,500 per year.
Disclosure: Boise Regional Realtors is a BoiseDev sponsor. The group had no role in the selection or editorial process of this story.