With Ada County’s increased economic development, limited housing supply, and growing population, it is no wonder August’s median sales price hit a record high of $278,000—up 9.6% from a year ago! Despite these strong statistics, we are beginning to see a cool down in the pace of price increases. This is largely due to less buyer foot traffic in the busy “back to school” season as well as to the overpricing error of sellers who are still basing their current home value on hotter summer sales activity. The positive pressure of our “low supply/high demand” market will keep home values trending upward, but the rate of upward movement will continue to decline.
Since January 2012, when the real estate market turned back up from its long dive, the recovery rate has been strong. Between 2012 and now, Ada County has seen an average year-over-year price growth of 7.9%! Most real estate economists predict price growth will slow to 4-5% per year in the coming 1-3 years. After which, they anticipate consumer demand and home supply will balance out—returning price appreciation closer to regular inflation rates.
Below are the current Ada County market statistics for August 2017 compared to August 2016:
- Closed sales – 1,128 (up 10.4%)
- Median Sales Price (including new construction) - $278,000 (up 9.6%)
- Days on the Market - 33 (down 5.7%)
- Pending Transactions - 1,742 (up 15.3%)
- Inventory: 1,951 (down 13.4%)
- Months of Supply – 1.8 (down 18.2%)
We also wanted to show how the number of months supply of inventory fluctuates based on the price range. The current month’s supply condition in each price range is as follows:
- $159,999 or less: 0.8 months
- $160,000 - 199,999: 0.7 months
- $200,000 - $249,499: 1.3 months
- $250,000 - $299,999: 1.9 months
- $300,000 - 399,999: 1.8 months
- $400,000 - 499,999: 2.2 months
- $500,000 - $699,999: 3.2 months
- $700,000 - $999,999: 6.6 months
If you’re interested in knowing more about the current state of the market, check out these informative August 2017 Boise Regional Realtors Market Reports for both Ada and Canyon Counties.