Treasure Valley buyers can finally come up for a breath of air, as housing inventory rose to its highest level in more than a year in both Ada and Canyon counties. Canyon County listings hit 607 in July, a 76% increase over last year’s 344 listings. Ada County saw active listings rise to 1,014 last month, up from 768 the year prior – or a 32% increase.
Also for the first time in over a year, both counties boasted more than one month’s supply of current inventory. The sudden influx of homes for sale is partly due to seasonal factors. It’s also thanks to the rush of homeowners who put off selling last year but are now ready to list.
While one month of inventory is still a far cry from the four to six months typically seen in a balanced market, the influx of new stock indicates that buyer choice is improving in our otherwise painfully hot housing market.
How painfully hot are we talking? Ada County set yet another new median sales record in July at $540,000. That’s an increase of 38%, or $150,000, from last year. It also marks the 14th consecutive record-setting month in the county. Homes in the county are spending a median of just seven days on the market, as opposed to 14 days last July.
- Meridian hit a new median sales record with $539,995, or a 44% jump from last year.
- Boise’s median sales price dropped from a record $500,000 in June to $488,000 in July. That’s still a 32% increase over last year’s price.
- Eagle also dropped in price from last month to land at a median price of $811,793 in July, up 47% from July 2020.
Canyon County prices dropped slightly in July, as sales shifted to smaller, cheaper properties. The county finished with a median sales price of $414,750. But that’s still a 38% increase, or $115,000, over last July’s price. Homes in the county are on the market a median of seven days – much lower than last year’s 15 days.
- The county’s largest market, Nampa, finished the month with a new median sales price record of $424,900. Echoing the county as a whole, that’s a year-over-year increase of 39%.
- To the northwest, Middleton home prices have risen 33% in the last year, finishing July with a median home price of $415,002.
Buyer demand is still very high for homes in the Treasure Valley, especially for homes in pristine condition with ample space and privacy. These gems continue to attract multiple offers and sell above their listed price.
Treasure Valley Sees Demand for Million-Dollar Homes Soar
Demand still drives the Boise metro area market. While buyer fatigue and increasing prices have sidelined some homebuyers – especially first-time homebuyers who lack sizable down payments – there are still many more people looking to buy than there are properties for sale. This demand is pushing competition, and prices, up even higher.
In the last year, the number of Ada County homes sold priced above $1 million has tripled. During that same time, the total number of cash sales rose from 17% to 23%. The number of conventional sales also increased, but just from 66% to 68%.
More Relief To Come for Homebuyers As Market Frenzy Slows
As 2021 marches into fall, we’ll start to see some relief from the “Great Reshuffling,” in other words, the pandemic-driven demand for larger, less crowded living spaces. Instead, the market will resemble the 2018-19 market – still a traditional seller’s market, but without the extreme frenzy of 2020.
We can already see signs of this happening today. Seventeen percent of active properties on the market have gone through at least one price reduction. Historically, that’s still low but you have to remember – price reductions were nearly unheard of in 2020.
We’re starting to see builder incentives included in low- to mid-level priced new construction as well. The caveat, of course, is that these homes were very aggressively priced. Still, it shows that the market does have limits and market corrections are beginning to take place.
How builders list new construction projects is also affecting the market. Up until the end 2020, builders were pre-selling houses – in some cases, even before beginning construction. But that changed in 2021, when labor and material shortages, combined with rapidly rising costs, squeezed their profit margins. Now, it’s more common to see properties listed when they’re closer to completion. That transition from “sell-then-build” to “build-then-sell” effectively moved a large slice of our new construction supply from the first half of the year to the second.
The fact is, the break-neck appreciation we’ve seen over the last couple of years isn’t sustainable. Looking at the next 12 months, we don’t expect price increases to in any way resemble those of the previous year.
Home Price Appreciation Hits a New National Record
Markets across the country are feeling the pinch of rising prices. New data from the Federal Housing Finance Agency indicate prices jumped 18% nationwide between May 2020-21. That’s a national record going back to 1991, when the agency began tracking this data.
A separate report from the National Association of Realtors showed the median existing-home sales price in June rose 23.4% from a year earlier to $363,300, a record high.
Thankfully for buyers, low mortgage rates continue to boost affordability. Rates for 30-year fixed mortgages finished at 2.80% for the month of July. That marks the fifth consecutive week rates have remained below 3%. Meanwhile, the 15-year fixed rate hit 2.10%, a new record low.
Boise Home Sellers Reap Incredible Profits
A new report confirms something you probably already know; it's an excellent time to be a home seller – especially in Boise. According to ATTOM Data Solutions' review of home sales data during the second quarter, nationwide, sellers received a 44.9% premium compared to what they paid for their homes. Boise ranked first on their list, with the typical seller walking away with a 123.4% profit.
We’ve helped our clients achieve similar profit margins from selling their homes – and then turned around and put them in their dream home at a competitive price. Why? Because We Know Boise area real estate. So if you’re ready to list your home, or need a knowledgeable agent in your corner, give us a call. We’re ready to help.
Boise Real Estate Market Summary for July 2021
- Median list price - $475,500 (up 28.9%)
- Median sold price - $488,000 (up 31.9%)
- Price per square foot - $308 (up 42.6%)
- Total home sales - 411 (down 159)
- Median days on market - 6 days (down 3 days)
- Available homes for sale - 0.97 month supply (up 0.33)
- 30-year mortgage rates - 2.87% (down 0.15)
Boise Metro Housing Markets by Area
Median sales price:
- Ada County - $540,000
- Eagle - $811,793
- Garden City - $407,600
- Kuna - $478,245
- Meridian - $539,995
- Star - $562,990
- Canyon County - $414,750
- Caldwell - $382,750
- Middleton - $415,002
- Nampa - $424,900
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) between August 1st-6th, 2021. 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.