In each of the past three years, local home prices have remained flat in October. Not this time.
Following a year of new records, the local real estate market had the priciest October since 2013.
The median Ada County home price rose 18.71 percent to $320,403 from a year prior. Down from the record high we saw in August of this year but up nearly $4,000 from September.
The median time a home is listed before selling dropped to 16 days, 2 days quicker than last year.
House prices in Boise helped lead the way, jumping 19.46 percent.
Nearby Canyon County was even brisker with prices jumping 22.17 percent. While down from the twin record highs set in July and September, countywide the cost of the typical home is $39,000 more than it was just twelve months ago.
Home sales also increased, up 4.6 percent in Ada and 6.08 percent in Canyon County. Boise sales rose 1.31 percent from the previous year and 18.97 from last month.
All the while, available houses for sale declined yet again. Down from last month and year over year.
High demand and dwindling inventory leading to higher prices may not seem like much of a surprise, but the fact it's happening in fall makes it unusual.
Early fall has traditionally been one of the best times to buy due to a seasonal peak in the number of homes for sale.
Prices continue to accelerate as Boise remains one of the most competitive and fastest growing markets in the country.
A tale of two markets
On the one hand, we have rising interest rates and lower affordability. On the other, a robust local economy and continued population growth.
Over the summer we saw a steady increase in the number of listings with price cuts or that were removed from the market entirely without selling.
Anything priced at market value, in good condition, will sell very quickly. If it's even the slightest bit overpriced, it's sitting.
You wouldn’t believe it by looking at October’s numbers, but we are headed for a more balanced market.
Be In The Know: Why Boise Is Bucking the National Trend of Slowing Home Prices
If you are looking for a deal, focus on the extremes, fixer uppers and new construction.
For those willing to put in some sweat equity, houses needing small to medium remodels can be great buys this time of year. Not too many people want to take on a major project in December.
On the other end of the spectrum, builders don’t like sitting on empty inventory during the winter months. Even in a seller's market, buying a new home in November will typically save you thousands.
This year isn’t looking to be any different. Several of the builders I’ve talked to are already planning $10,000 to $15,000 discounts.
The steep decline in new listings we see beginning in September tends to push prices higher by early winter. We have seen new records in January, February or both in each of the last four years.
In 2018 prices peaked in February, then dropped in April and May. We will most likely see a repeat in 2019.
Neighborhoods by the Numbers
Boise Real Estate Market
- Median list price - $299,000 (up 20.87%)
- Median sold price - $295,000 (up 19.48%)
- Price per square foot - $174 (up 11.54%)
- Total home sales - 464 (down from 475)
- Median days on market - 13 days (down 2 days)
- Available homes for sale - 1.22 months supply (down from 1.44)
- 30-year mortgage rates - 4.83% (up from 3.90%)
Housing Markets by Area
Median sales price:
- Ada County - $320,403
- Eagle - $473,178
- Garden City - $335,000
- Kuna - $258,095
- Meridian - $325,000
- Star - $336,770
- Canyon County - $218,950
- Caldwell - $205,000
- Middleton - $259,900
- Nampa - $210,500
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Information in this market report was obtained from the Intermountain MLS (IMLS) on November 9th, 2018. Deemed reliable but not guaranteed. City data refers to single-family homes on less than one acre, while county data includes homesites of all sizes. Current inventory is calculated on a twelve-month rolling average. Combining existing homes for sale with new construction is the best way to gauge current home prices and Boise housing market trends. New house prices are much more volatile and tend to exaggerate the numbers, particularly on a month to month basis.