This month’s market change was characterized by a slight dip in the median sales price, dropping 1.3% from the previous month but still up 9.7% from the same month last year. The small month to month drop in the median price was likely affected by a change in the “mix” of home sales by price range from June to July.
What we mean by “mix” of existing home sales is the number of homes available in given price ranges in a given time period. The mix of homes sold this month consisted of more lower priced houses and fewer higher priced houses than in previous months, which impacted the median price. As stated by Boise Regional Realtors writer Breanna Vanstrom, “From June to July of 2019, the number of homes for sale in the $160,000 to $199,999 range increased slightly from 2.1% to 2.5%, and the share of existing home sales in the $500,000-$699,999 price range decreased from 11.4% to 10%. Also, during this time period, the share of existing home sales in the $1,000,000 or more price range dropped from 1.3% to 0.5%. While the number of higher-dollar home sales is usually lower compared to the total number of homes sold, the impact these higher prices sales have on the overall median sales price can be significant.”
Although the impact of this month’s mix of homes drove the median price down slightly, our year over year price appreciation of 9.7% remains strong due in large part to our overall low inventory levels compared to increasing buyer demand. The months supply of inventory (MSI) for July 2019 was 1.9 months, up 13.9% from July 2018. But, we are still a long way off from a balanced market, which is characterized by MSI levels in the 4-6 month range. If we continue with less than 4 months supply of inventory, which is expected, we will remain in a seller’s market. Under these conditions, price appreciation, though possibly experiencing slight month to month dips due to variations in the mix of homes, should continue on a strong upward trajectory.
If you’d like to discuss more about current market trends and how that could affect your buying or selling decisions, please don’t hesitate to give us a call. We would love the opportunity to meet with you!
For a quick snapshot of the Boise housing market for July 2019, see Boise Regional REALTORS® housing market summary for Ada County below:
