Quarterly Real Estate Update
Boise ID Metro AreaQ1 2020 Report
2020 What a year so far! The universe never fails to throw surprises into the markets, does it? On the bright side- Interest rates are hovering near all-time record lows, making this a great time to buy and borrow on real estate. All of my offers have been against multiple bidders lately, so it's also a great time to sell. Why can't it be both? We're booming.
Boise Metro Home Prices- Q1 2020
Quarterly Median Existing Home Prices are the most reliable indicator of housing market price trends. Monthly numbers are too small and erratic. I use only existing homes in my chart, as the ebb & flow of new construction can skew the numbers.
The Ada County median existing home price for Q1 2020 rose 5.2% from the previous quarter to $347,275. This is the second strongest showing for a first quarter in the last decade- the previous Q1 increase was only 3.28%. Despite the virus shut-down, the odds are good that strong home price appreciation will continue.
Year over year, the Ada County median existing home price is up 16% from Q1 of 2019. That is equivalent to 3-4 years of normal appreciation in one year! Ouch for renters.
The Canyon County median existing home price for Q1 2020 jumped 4.6% from the previous quarter to $252,000. Also a very strong start. Year over year, the median in Canyon County is up 17.2% when compared to Q1 of 2019. Do not miss out on this year!
Did Covid-19 Virus Cause a Downturn in Boise Idaho real estate?
Not really- more like a one-month blip in my charts. Here are my updates on 3 major indicators of a down-turn that I watch for.
1. Absorption Rate - A slowing here could be a sign of a weakening in prices. The 12-month average for 2019 in Ada County was 1644 listings / 982 sales = 1.67-month absorption rate. The rate for Q1 2020 was 1.385 months. The rate for April was 1.45 months. May 1.51 months, up slightly again but still below last year.
Canyon County averaged 746 listings / 414 sales = 1.8-month absorption rate for all of 2019. The rate for Q1 2020 was 1.3 months. The absorption rate for April was 1.06 months. May was up to 1.31 months. Still extremely tight in Canyon County.
The national rate was 3-months as of year end.
2. Days on market - The 2019 average DOM for existing homes was 26 days in Ada county. For Q1 of 2020 average was 30 days. For April & May, the average held at 15 days. Half of those sold in just 6 days!
The Canyon County average DOM was 29 for 2019. The average for Q1 2020 was 34 days. The average for April shrunk to 13 days and for May up to 15 days.
3. Discounts off asking - This chart shows all existing home sales through 2019 in Ada county. The discount is the difference between the average list and average sale price, not counting any closing costs paid by sellers.
I will get this chart updated to include Q1. However, I can report that: Despite the shut-down, the average discount in Ada County for existing homes sold in April was a tiny $375 and in Canyon County, a whole $672- both the smallest ever to my knowledge. The discount off asking that sellers accept continues to shrink and many are bidding over asking to win. If anything, the Boise Metro housing shortage is intensifying.
I have many more charts! See My Market Monitor for more information on Boise Metro housing markets and trends, updated monthly.
I am always happy to answer real estate questions; recommend a good lender, provide a free CMA or neighborhood history, an investment analysis, should-I-refi-or-remodel questions, first-timer education, etc.