Coronavirus Resources & Recent Market Trends
As we all continue to monitor how COVID-19 is affecting the community, we wanted to check in and say we’re here to help. During this uncertain time, please don’t hesitate to reach out with any questions you have about your home value, current housing market conditions, or anything else we can assist with. Nothing is more important than your health and safety.
In the next month, we should have a better picture of COVID-19 and the local real estate market. Until we are a bit further along in the stay-home order and it’s impending release, we will have a better picture on the impact this may or may not have on the local housing market. Time will tell — we fully expect that Idaho real estate will weather better than most locations in the US.
Recent Market Trends
Real estate has been deemed essential under the statewide stay-home order, allowing many home sales that were in process to close as scheduled. Housing market activity has not come to a halt in Ada & Canyon County. Homebuyers, and sellers are turning to technology and following CDC recommendations to stay safe during the COVID-19 pandemic.
This minimized the short-term impact on sales that we might have otherwise had. When looking at the monthly statistics for March, it’s important to keep in mind that many of the homes that closed last month went under contract before the restrictions went into place.
Inventory & Pricing – Increased home values rolling into 2020 continued to be driven by a lack of existing/resale inventory compared to higher demand. This was particularly true for home sales last month as there were record low numbers of existing/resale homes for sale in January and February. In March, however, there was a significant improvement in inventory for the segment with 652 existing/resale homes available for sale in Ada County, an increase of 10.1% compared to last year.
Pending Home Sales – The number of homes under contract, were down compared to the same month last year, which may impact the number of sales in future months; however, much of that can be attributed to record low inventory in January and February, down 19.7% and 23.4% respectively year-over-year, not necessarily a decrease in homebuyer demand.
New Construction – TThere were 899 home sales in Ada County in March 2020 — up 7.9% compared to March 2019. With new construction continuing to make up a large portion of the total sales, the overall median sales price reached a new high of $367,000, an increase of 9.6% compared to the same month last year. New homes typically sell at overall higher prices due to land, labor, and material costs, and the higher share of sales pushed up the county’s median sales price.
Furloughs vs. Layoffs
Unemployment, worry, missed mortgage payments, and loss of income… we all have enough to worry about without wondering how you’re going to make your monthly mortgage payments. There are a number of options available to help address the temporary financial setbacks of a furlough or layoff. Here’s a helpful article covering the differences between the two types of job loss and what you can do to get back on your feet (link to article).
Those thinking about selling or buying shouldn’t be concerned with ‘timing the market,’ because the best time to buy or sell is when it fits your needs and circumstances. If you’re thinking about making a move, talk to your Real Estate Counselor and explore your options.
Contact Your Real Estate Counselors.
Source: The data reported is based primarily on the public statistics provided by the IMLS, available at intermountainmls.com. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed.
Disclaimer: This commentary reflects the personal opinions, viewpoints, and analyses of the Real Estate Counselors, LLC. This information is intended to help educate our clients to make informed real estate and financial decisions. Contact your Real Estate Counselor for current housing information suitable for your specific property and situation