Ada County Home Prices Approach $600,000 for the First Time
Posted by Lisa Kohl on Friday, May 6th, 2022 at 9:58am
Treasure Valley home prices leaped to new records last month as buyers continue to outnumber sellers and listings remain elusive.
In another month for the record books, both Ada and Canyon Counties saw home prices rise over $20,000 from March to April.
Less than a year after crossing the half-million-dollar mark for the first time, the median home price in Ada County closed the month just $5,000 shy of the once unfathomable figure of $600,000.
The Boise metro area continues to see a fast-moving market, with half of all homes selling in less than 7 days, the second-fastest for any April on record. Open house activity remains strong, and multiple offers are typical on the most sought-after new listings.
We are in the heart of Spring Selling Season–the period from March until June when many families look to move before the start of the new school year. While we see a seasonal rise in new listings, relentless demand is easily keeping pace.
All of the Treasure Valley’s largest housing markets rose to new highs in April:
- In Ada County, the median single-family home price jumped to $595,000, its third consecutive record. That’s an increase of $112,792 (23.39%) from twelve months ago.
- Hitting a fourth new record, Canyon County home prices rose to $476,500, increasing $81,050 (20.50%) from the year prior.
- Rising $89,300 (18.66%), Boise also reached a new record sale price of $567,800, its fifth consecutive new high.
- Crossing $600,000 for the first time, Meridian ended the month at $610,000, with a remarkable $130,555 (27.23%) year-over-year increase.
- Not to be left behind, Nampa jumped $97,810 (25.30%) to $484,450, its third new record this year.
As you would expect, higher mortgage rates and home prices have had a noticeable impact on affordability and demand. However, there are still more qualified buyers looking than there are homes to buy. That’s continuing to push prices higher.
New census data released in April shows that the Boise Metropolitan Area was the sixth fastest growing in the country between July 2020 and July 2021, adding nearly 26,000 residents.
The Treasure Valley has seen an influx of new residents for years as people have sought more affordable housing and a better quality of life than many could find in crowded and pricey coastal cities.
In the last couple of years, that trend has only been exacerbated as Covid-19 led a flight to the suburbs, made easier by the trend to work from anywhere.
Additionally, super-low mortgage rates helped send demand into overdrive by effectively making homes more affordable.
The best indicator of the imbalance between supply and demand, the month’s supply of homes for sale, remains below one month throughout the Treasure Valley. As you may remember, anything below two months is considered an extreme seller’s market.
While we saw some housing demand pulled forward over the last quarter as eager buyers have tried to stay ahead of rising mortgage rates, limited supply suggests it will continue to be a busy home-buying season in the Boise area.
Higher Mortgage Rates and the Decision to Act
To tame rising inflation, the Federal Reserve has begun increasing short-term rates and has signaled further increases. In anticipation of higher long-term interest rates, lenders have started charging more for loans with the longest terms, including mortgages, pushing rates up at the fastest pace in decades.
30-year fixed mortgage rates finished the week at 5.27%, up from 4.72% at the beginning of April. There is no doubt that higher rates wreak havoc on affordability, particularly for first-time buyers. However, they have had little noticeable impact on local housing prices, yet.
From mortgages and student loans to corporate bonds, current interest rates tend to reflect future expectations, often more than current circumstances indicate. You could make the case that mortgage rates have gotten ahead of themselves a bit.
The question is, if you are looking to buy a home, should you wait for lower rates or move forward now? If you purchase today and rates move lower, you can always refinance to take advantage of those lower rates. On the other hand, if you wait and rates move higher, you are guaranteed to pay more.
Market Timing Rarely Works (and Often Isn’t Necessary)
As a seller, the soaring appreciation of the last few years may seem lucrative enough to consider holding out for a larger return. However, the factors that led to that surge show that it might be better for would-be sellers to enter the market sooner rather than later.
As the last few years have shown, there's no way to predict what will happen in the future.
Most sellers don't try to time the market, but some always hold out to the last minute. If it becomes apparent that price appreciation is slowing, there’s likely to be a rush of new listings from the penny-squeezing sellers.
If you are a current homeowner who will be both buying and selling, there is not an urgency to act as, in most circumstances, you will benefit from either side of a transaction (buy side or sell side) no matter what is happening to prices.
However, if you’re planning to sell in the next year, it will likely be better to enter the market sooner than later — we’re right in the sweet spot of extreme demand, historically low(ish) mortgage rates, and incredible price records.
Mortgage rates are changing weekly, and while we can’t predict what tomorrow’s market will look like, we’re employing many strategies to help buyers and sellers get the most out of the Spring Selling Season.
We Know Boise has the right one for you.
Boise Real Estate Market Summary for April 2022
- Median list price - $553,000 (up 20.23%)
- Median sold price - $567,800 (up 18.66%)
- Price per square foot - $329 (up 13.45%)
- Total home sales - 313 (down 59)
- Median days on market - 6 days (up 1 day)
- Available homes for sale - 0.78 month supply (up 0.40)
- 30-year mortgage rates - 4.98% (up 1.90)
Boise Metro Housing Markets by Area
- Ada County - $595,000
- Eagle - $868,000
- Garden City - $425,000
- Kuna - $494,750
- Meridian - $610,000
- Star - $566,840
- Canyon County - $476,500
- Caldwell - $404,459
- Middleton - $550,420
- Nampa - $484,450
Lisa Kohl
Lisa carefully studies the local housing market to give her clients the edge when buying or selling a home in Idaho. We Know Boise is a full-service real estate team that combines our LOCAL expertise with traditional know-how to create exceptional results for each of our clients.
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Information in this We Know Boise market report was obtained from the Intermountain MLS (IMLS) on May 6th, 2022. 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 can create unreliable comparisons, particularly on a month-to-month basis.
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