Shrinking supply, speedy sales: Ada County home prices rise for second straight month
Home prices in Ada County have risen for the second month in a row, and they show no signs of stopping.
After a slump in sales driven in part by higher mortgage rates and what had been skyrocketing prices, the median cost of a house in the Treasure Valley began marching back up in April, and new numbers indicate that trend could stick around.
The latest data from the Intermountain Multiple Listing Service shows the median sales price of a home in Ada County in May was $534,900, up $17,400, or 3.4%, over April. In March the median sales price was $483,450 — the lowest monthly price for the county in two years.
In May 2022, median home prices in Ada County hit an all-time high: $602,250.
The jump in prices this time around might be tied to a familiar problem: low inventory. Boise Regional Realtors reported in a news release that the local market saw its first year-over-year decline in for-sale inventory since June 2021.
Existing home options decreased 22.2% in May and the inventory of newly constructed homes fell by 9.9%. A total of 1,259 houses were listed last month.
“Tackling supply issues will be a large factor in easing affordability concerns in our area,” Boise Regional Realtors President Debbi Myers said in the release.
With high demand and not enough supply, price climbs are likely to continue.
In Canyon County, the median sales price rose to $415,000 in May, up $25,010, or 6.4%, over the median price in April, according to the Intermountain Multiple Listing Service.
Homes in Ada, Canyon counties selling faster
Single-family homes in Canyon County spent an average of 52 days on the market last month, compared with 68 days in April and 80 in March.
In Ada County, houses spent an average of just 36 days on the market; the number was 55 in April and 72 in March.
Meanwhile, sales in Ada County were down 11.2% from this time last year. The county saw 699 closings, the smallest amount for the month of May since 2012. Ada County homes also went under contract more quickly than they did in previous months, the data showed.
Other details from the latest monthly listing-service report for Ada County:
Highest median prices: Northeast Boise, $1,215,000; Eagle, $979,450; North Boise, $767,350.
Lowest median prices: Garden City, $409,500; Boise Bench, $425,000; South Boise, $430,000.
From the latest report for Canyon County:
Highest median prices: West of Lake Lowell, $892,500; Middleton, $559,000; Melba, $542,110.
Lowest median prices: Greenleaf, $317,450; Parma, $357,999; Southwest Caldwell, $369,990.
Unaffordable Boise
Among the 100 biggest metro areas in the country, Boise and two other cities — Spokane, Washington, and El Paso, Texas — have the fewest affordable homes available for middle-income buyers, according to market highlights released June 8 by the National Association of Realtors.
“Middle-income buyers can afford to buy less than a quarter (23%) of listings in the current market,” the National Association of Realtors said, referring to the nation as a whole. “Five years ago, this income group could afford to buy half of all available homes.”
Interest rate hikes enacted by the Federal Reserve throughout 2022 convinced many would-be homeowners to stay out of the market, but as the average mortgage rate falls and some decide to resume their searches, inventory woes may worsen, the group said.
On Wednesday, the Fed left rates unchanged for the first time since last spring, but indicated that further hikes were likely later this year.
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