The median price of a home in both Ada and Canyon Counties continues to drop, and fewer homes are selling than in any year since 2015.
The September data from the Intermountain Multiple Listing Service shows the median price of a house in Ada County fell to $540,000 in September – that’s a drop of 4.4% from August, and the fourth straight months of declines. (The median price topped out in May at $602,250 – meaning the median price has fallen about 10.3% since the top of the market.)
In Canyon County, the median price fell to $426,990 for the month, a decrease of 3.17%., the fifth straight month of declines. (The Canyon median peaked in April at $476,500, making for a 10.4% decline since the top of the market in the 2C.)
The Ada & Canyon prices for September of 2022 are just slightly higher than September of 2021.
The median price is the halfway point – meaning half of all houses sold got more, and half got less.
Slower sales, fewer sales
With prices dropping, the time it takes to get a deal in place is continuing to climb. The average home went to pending status in 38 days in Ada Co. – nine days longer than in August. That’s the longest average days on market in Ada County since March 2020, just as the COVID-19 pandemic began to impact Idaho. The average home in Canyon Co. took 44 days to get a deal, also the slowest pace since March 2020.
The number of homes dropped significantly as well, with deals for 1,034 homes closing between Ada and Canyon. That’s fewer homes sold than in the month of September than in the same month since 2014, when 957 houses sold.
For the year, the number of homes sold is pacing well behind recent years. A total of 10,722 houses sold between Ada & Canyon counties from January through September, a drop of 14% from the first nine months of 2021. That puts it behind every year’s sales since 2016. The last time fewer houses sold through the first nine months was 2015, when 9,998 houses had a sold sign in the yard.
Intrerest rate pressures
Rising interest rates remain a key factor in the housing situation across the country. According to the St. Louis Fed, the rate for a 30-year fixed mortgage stood at 6.7% as of September 29th. That’s the highest average the central bank has tracked since 2008.
If you bought a home last September at the Ada Co. median price of $534,950 and the 3.01% interest rate at the time, a 30year fixed mortgage (assuming you put 20% down, but paid no taxes or fees) would cost $1,807 per month. This year, using the median price of $540,000 and a 6.7% rate, that same ‘median’ house would cost $2,788 – an increase of $981 per month just in interest payments.