Real Estate Counselors

Spring Awakes Treasure Valley’s Housing Market

As expected, warmer weather brought more buyers out in February, pushing pending sales in Ada County 25.7% higher than the previous month, with 1,303 homes going under contract. Though pending sales were up month-over-month, they were 5.5% lower in February 2017 than in February 2016 because there were fewer homes available to purchase. Speaking of inventory, it was down 16.1% in Ada County from February 2016.

But there was a bright spot on the inventory front — the number of homes for sale was up 4.1% in February 2017 over January 2017. More encouraging, this increase was caused by more existing homes coming online, up 14.0% month-over-month.

The story was similar in Canyon County, where pending sales were 30.8% higher in February 2017 versus January 2017, representing 565 homes under contract. Overall inventory was down 11.5% year-over-year, but the number of existing homes for sale was up 3.0% from January.

As shared in previous reports, the area overall median sales price (existing and new construction combined) has been pushed up by the limited supply compared to buyer demand. February 2017 hit a new high median sales price in Ada County of $256,600, led by gains in new construction prices. Canyon County was just $250 shy of reaching its previous median sales price market peak, also due to new construction prices.

A recent report based on data from the Federal Housing Finance Agency (FHFA) actually notes that the Boise metro area has joined cities such as Denver, San Francisco, Nashville, and others, as being “fully recovered” from the recession as prices have surpassed previous market peaks. NAR’s Chief Economist Lawrence Yun also referred to Boise in an interview, reinforcing our market’s likelihood to see continued price appreciation.

While not as strong as new housing, the median sales price for existing homes also rose. In Ada County, the February 2017 median sales price for existing homes was at $220,900, nearly even with January 2017 but up 3.8% from February 2016. Canyon County’s median sales price for existing homes was $157,200 in February 2017, up 6.9% from February 2016 and up 3.4% over January 2017.

This report is provided by the Ada County Association of REALTORS®, which began doing business as Boise Regional REALTORS® (BRR) in 2016. BRR is the largest local REALTOR® association in Idaho, with over 4,000 members and two wholly-owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS) and the Boise Regional REALTORS® Foundation.

 

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