The median home price for Ada County reached a new record high this month coming in at $354,405. This is a 10% increase from the median price in June of last year and a 7.5% increase from last month! Although we don’t expect the current pace of price increases to continue at such large percentages, we do expect the trajectory will remain upward. Included in this e-newsletter is an article with information gathered from reliable sources confirming upward national housing price projections. Reasons for these predictions vary slightly depending on area, but here are a few reasons why we project continued price increases in the Treasure Valley:
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There are too few houses to keep up with the number of people looking to buy, especially in the lower price points. With everything our area has to offer, the Treasure Valley continues to attract people from all over the country. Low interest rates, which equate to lower monthly mortgage payments, continue to attract more people to buy as well. Both these factors are increasing demand and putting strain on a market with already limited inventory. This gap between buyer demand and housing supply appears as though it may continue for quite some time, meaning the competition for housing and the price increases such competition fosters will be sticking around for quite some time as well.
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The cost of new construction has risen drastically. With too few existing homes available, there is a high demand for builders to build more. This creates heavy demand for vacant land, skilled labor, and construction materials. Since these things are in low supply, prices on such items are rising quickly. The gap between the demand of builders and the supply of land, labor, and materials is expected to keep construction costs rising well into the foreseeable future.
Increasing housing prices can be both frightening and encouraging at the same time. If you’d like to talk more about the current market and how it may affect your decisions to buy or sell in the Treasure Valley, please don’t hesitate to call us! We are familiar with local real estate trends and would love the opportunity to help guide you in your future real estate decisions.
For a quick snapshot of the Boise housing market for June 2019, see Boise Regional REALTORS® housing market summary for Ada County below:
