If you’re a homeowner in Ada County, your home is way more valuable than it was a year ago.
But, that doesn’t mean values are shooting up as fast as they were a year ago.
New data released from Boise Regional Realtors shows for January 2022 the median home price in Ada County is hovering at $540,000, up roughly 20% from this time last year. However, this figure is 1.1% down from the month before. This follows a recent trend of slower growth in recent months after hitting a peak of 45% year-over-year growth in May 2021.
Boise Regional Realtors said the number of people flocking to Boise due to the COVID-19 pandemic is causing the low supply, driving up prices and powering fierce competition to outbid other buyers to search for a home in the Treasure Valley.
“Home price increases continued to be driven by insufficient supply compared to buyer demand — primarily fueled by population growth, migration trends, and increased purchase power due to historically low mortgage rates,” a release from BRR said. “The most recent uptick in demand came from people re-thinking how they live and work as a result of the pandemic, contributing to the competitive conditions that enabled the incredible price growth we’ve seen in the last year.”
Supply on the way up, but not as much as pre-pandemic
It’s still a seller’s market out there.
According to BRR, last month the market in Ada County only had.3 months of supply for existing homes and one month’s worth for new construction. They say a balanced market, which doesn’t favor buyers or sellers, has 4-6 months of supply.
But, although supply is still on the low end, weekly listings in 2022 have been above this same time period of 2021. This trend could mean more homeowners are willing to sell their homes this year and create more turnover in the real estate market, but the 2022 weekly listenings still lag behind availability for 2019 and early 2020.
The time homes spent on the market between when a property is posted and when an offer is accepted increased to 33 days in January of 2022, 18 days longer than where it was this time last year. BRR says this length of time is similar to the length of time homes spent on the market before COVID-19.
“It’s hard to say whether these longer, and quite frankly, healthier market times were due to increasing prices, increasing mortgage rates, or some combination of the two,” 2022 Boise Regional REALTORS® President Becky Enrico Crum wrote in the press release, “but based on my experience with buyer clients over the last few weeks, it seems like competition is starting to ramp up again. One thing is for sure — our market needs more inventory in order to be more balanced.”