The last three months for TripleCord Real Estate and other brokerages in the valley have been a whirlwind. This uptick in real estate activity is common for the spring and summer seasons, but somehow it always seems to catch us by surprise. It has been a struggle to stay on top of everything…which explains why our “monthly” newsletter hasn’t made it out since April =-(
To catch you up on the past three months of market activity, the most notable statistic is the increase in home prices. Based on monthly averages going back to 2004, this steady rise in home values is common during the summer months. But, the median home price in Ada County increased from $228,250 in June 2015 to $253,000 in June 2016, which is the highest median price we’ve seen since July of 2006!
Rising prices have caused anxiety among consumers who fear these increases indicate the market is headed into another housing bubble. However, we as Realtors are not so worried. The current climate of our market is quite different than that of 2006. Home values are increasing due to the regular economic factors of demand and population growth as opposed to the market speculation that influenced price increases in 2006. Also, the hard lessons learned from the market crash are still fresh on people’s minds, resulting in more conservative decisions from Realtors, lenders, buyers, sellers, and investors. And although prices have increased a good deal over the last year, historically low interest rates and a strong local economy have maintained home affordability.
One thing that would certainly help establish a more balanced market would be an increase in the number of homes available for sale. Ada County’s current inventory can’t keep up with buyer demand. A balanced market is typically defined as one having between 4 to 6 months of supply. In June, the Boise area only had 2 months supply! If you are contemplating selling your home, our TripleCord team would love to meet with you to discuss more about how this low inventory factor could favorably influence your position. If you are planning to list your property and don’t think you will be ready before the busy summer buying season comes to a close, don’t worry too much about trying to rush. While spring and summer are typically the most active in Ada County, market trends over the last few years suggest home buying activity will remain strong throughout the fall and winter as well.