Home prices in Ada County didn’t break another record in October, but they remain sky high.
The median sales price for homes sold last month was $406,684, which is a slight drop from September 2020’s record-breaking $409,945, according to data from advocacy organization Boise Regional Realtors. Even though this is a slight reprieve in skyrocketing costs, it’s up 14.7% over the same time last year.
Prices first topped $400,000 in September and high demand for homes in the Treasure Valley shows no signs of slowing down. This average comes from the sale of 1,112 homes, which is 11.9% higher than in October 2019. At the same time, significantly fewer homes were left on the market at the end of October than the same month last year. Only 443 single-family homes were available for purchase at the end of last month, a 73.7% decrease from last October.
Lack of inventory keeps pushing prices up, with homes spending an average of only 20 days on the market before going under contract. This is so quick BRR said some homes may not even be recorded in the reported inventory numbers.
Ada County real estate reports from BoiseDev
There are a variety of reasons for the low inventory. BRR found some homeowners are delaying listing their home for sale until they can find a new one, which takes longer due to the lack of availability or they are concerned about being able to afford a higher-priced home due to the rapid increase in prices. Mortgage refinancing, which has reduced some homeowners’ payments, makes it more affordable to stay in their current home instead of moving. Other homeowners may be hesitant to sell due to COVID-19 and the risk of interacting with people outside of their household or they are dealing with the stress of working from home and virtual schooling.
“These kinds of situations are when a Realtor can be incredibly valuable to a homeowner in helping them understand their options,” Michelle Bailey, President of Boise Regional Realtors said in a press release. “Discussing new construction opportunities for those worried they won’t be able to find their next home, or explaining how virtual open houses and showings can limit in-person visits while still exposing the home to the widest pool of potential buyers can help homeowners find a path forward.”
Newly built homes are also flying off the market. BRR found inventory for new homes was down “significantly” from October 2019 while sales were up 16.7%. Difficulty finding some home appliances or building materials and shortages of workers in the construction industry has forced some builders to alter their construction timelines and move to preselling units through model homes. Homes sold this way show up as a closed sale, but they will never be actively listed on the market for sale.
Despite these difficulties in building, BRR reported 3,374 permits were approved for single-family homes throughout Ada County between January and September and another 380 permits in October alone.