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‘Insufficient supply:’ Local real estate market pops to another high driven by few homes for sale

The median price of a home in Ada County hit another record. The price stands at $425,000 in November,

Just one year ago, the median price for a home stood at $359,000 – an increase of $66,000 or 18.3% in just twelve months.

Boise Regional Realtors, which provided the data and is the advocacy organization for local real estate agents, continues to say a lack of homes available for sale as a key factor in the rapidly rising prices.

Not enough homes

The average home sold in November sat on the market just 13 days, versus an average of 32 days at the same time last year. As of the last day of November, BRR said 408 homes were available.

Ada Co. real estate reports from BoiseDev:

“As thesupplyof homesremainedinsufficientcompared to demand, and asmore buyers compete for the inventory that is available, thespeed of the market continued to accelerate,” BRR wrote in its analysis.

A total of 887 homes sold in November in Ada County alone, with another 1,700 under contract that could close soon. The median price in Ada County hit $400,000 for the first time in August – and now just a few months later stands well above that, with no end to the increases in site.

No slowdown

Often the real estate market slows down as the weather cools. But not this year.

“We are notseeing atypical winter slow down,” BRR President Michelle Bailey said. “Infact, throwoutall of yourpreconceived notions about the best time to buy or sell.Ifyou’re ready to enter the marketas a buyer or seller,a (Realtor)will be your most valuable resourcein helping you make decisionsquickly, navigate possible multiple offer situations, andachieveyourreal estate goals.”

Last week, the National Association of Realtors listed the ten markets in the country that showed the most resiliance during the COVID-19 pandemic. The Boise market ranked second.

BRR said that, along with new residents moving into the market, historically low interest rates and rising apartment rental rates continues to bring new buyers into the market. The agency cited ApartmentList data that showed the average monthly rent in Ada County for an apartment at $1,106. It says with the latest interest rate and a 20% down payment, $1,106 would buy a $270,000 home. Howerver, only 138 homes sold for that price or below in Ada Co. last month – just 14.4% of all houses.

Don Day - BoiseDev editor
Don is the founder and publisher of BoiseDev. He is a National Edward R. Murrow Award winner and a Stanford University John S. Knight Fellow. Contact him at [email protected].

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