- Median List Price $275,000
- Median Sold Price $275,000
- Days on Market 18
- Total Sold 1,041
The median price of a single-family home in Ada County rose 10 percent in September from a year earlier.
While prices declined from the previous record of $278,995 set in August, September's $275,000 home price is still the second highest on record, even exceeding this June’s high. Canyon County values finished the month at $181,950, up 13.72 percent from last year. The all-time record high of $185,501 was set in July of this year.
Home prices in Boise set a new record high of $258,000 up 13.16 percent year over year.
The time homes spend on the market in Ada County dropped to 18 from 20 twelve months ago with total sales remaining basically the same at 1,041. In Canyon County, days on market decreased by 5 to 15 and total sales rose to 446 to 415.
Where have all the houses gone?
While the demand for houses remains consistent, the supply of properties for sales continues to shrink.
Demand is driven by dozens of factors involving everything from population growth, incomes, employment opportunities, the need for more space and of course the desire to own a place of your own.
Supply, on the other hand, is based on two factors. The number of houses currently built, existing quantity, and the number of homes being added to that supply, new construction.
In Ada County, the 2016 population was 444,028, according to the latest estimates from the U.S. Census Bureau. Based on our ongoing population growth (more precisely household growth) we should be adding about 2,685 new homes per year.
Between 2009, the year demand begun to outpace supply and 2016, approximately 1,600 new construction homes were built each year. Based on current construction rates, we are on pace to complete 2,700 new homes in 2017. While we are breaking even (barely) this year, it does not make up for 7 years of unmet demand.
Keep in mind, this does not factor in the above average household growth we have been experiencing, and more than likely will continue to experience going forward.
In the short-term, demand doesn’t always move in a straight line, but over the long term, it tends to be predictable.