With 2021 in the books, and all the numbers crunched, we now have a fuller picture of how the Boise metro real estate market performed last year.
In a word? Up.
The median price of a home in Ada County across all twelve months of the year stood at $510,987, an increase of an unprecedented 30%. In Canyon County, the growth rate was even higher – with a median of $380,500 – an increase of 37% from the prior year.
The data comes from the Intermountain Multiple Listing Service.
The median price is the halfway point of all homes sold in a time period.
Median hits new record in Ada, near high in Canyon
The median price at year-end, for December, stood at $546,000 – which is a new monthly record, and the first time prices in Ada Co. hit a record since July. It’s an increase of 1.5% from November. In Canyon, the year-end median price hit $419,480, which is just shy of the record earlier this year, and up 2.3% from November.
Data from online brokerage Redfin shows that the number of homes sold in December of 2021 actually eclipsed the same month the year prior for the first time since May.
That data point backstops IMLS data for the full year – which shows fewer homes sold in 2021 versus 202.
Between the two counties, a total of 16,871 homes sold in 2021. That’s a function of inventory, which through much of the year sat near the lowest levels in decades.
In Ada, 11.8% fewer homes were sold in 2021 versus 2020. Drilling down on the number of homes sold, Ada County saw a big decline in the new construction space, with the number of brand new homes sold dropping 21.7% from 2020, while existing homes dropped at a smaller rate of 6.7%. In Canyon, the decline was much smaller – a 2.95% drop with the rates nearly identical between new construction and existing homes sold.
The total number of homes for sale on the last day of December, according to IMLS, stood at 1,094 between the two counties. While that’s the third straight month where the inventory level has dropped, it follows a seasonal pattern — and is more than double the number of houses on the market one year ago.
Only slightly more homes are available in the larger Ada County versus Canyon County – with 582 in 1A and 512 in 2C. That’s the smallest gap between the two counties since we started tracking in July of 2019.
Homes were sitting on the market for the longest period of time since the summer of 2020. In Ada County, the average home sat for 32 days before a deal was reached, while in Canyon County the average listing went 41 days before a deal was in place.
Price drops drop off
This fall, Bloomberg ran a story that got wide attention locally, stating that the Boise metro market had the highest number of “price reductions” in the nation. Price reduction is a jargon-filled way to say real estate listings that cut the price after going on sale.
For a time in October and November, 12% of all listings had cut their price according to data from Redfin, a dramatic and quick rise from the spring when just 2% or less of listing had cut their price. The 12% figure is the highest on record for the Boise market on Redfin dating back to mid-2017.
The percentage of listings with price reductions quickly fell back to earth, with about 6.2% of listings having cut their price on the market in December — though that’s still higher than the same time frame in any of the previous four years.