Quarterly Real Estate Update
Boise ID Metro AreaJuly- Q2 2019 Report (Under Construction)
Happy Summer 2019! Home sales have peaked for the year, as usual for the past 5 years. Our persistent low supply problem continues, but has softened slightly. There are just a few more listings and the market times are slowing- good news for buyers and investors wanting to take advantage of historically low interest rates.
If you are considering a purchase- home or investment, all indications point to home prices continuing to rise in the third quarter. Don't take my word for it. NAR is predicting Boise Idaho home prices will rise 9.4% in the next year, fourth fastest in the nation, based on our low supply and high demand. Ask me for good local lenders to get yourself prequalified.
Boise Metro Home Prices- Q1 of 2019
Quarterly Median Existing Home Prices are the most reliable indicator of housing market price trends. I use only existing homes in my chart, as the ebb & flow of new construction can skew the numbers.
Ada County's median existing home price for Q2 rose 8.5% from the previous quarter to $325,000. Year over year, the Ada County median existing home price is up 13.6% from Q2 of 2018. That's like 4 years of normal appreciation in one year!
Canyon County's median existing home price for Q2 rose 9.26% from the previous quarter to $234,900. Year over year, the median in Canyon County is up 16.87% when compared to Q2 of 2018. These annual increases are worth 5 regular years of appreciation- don't miss out on this year!
Ada County Discounts Still Shrinking
This chart shows all existing home sales through the end of 2018 in Ada county. The discount is the difference between the average list and average sale price. This does not include any buyer's closing costs paid by the seller.
Home prices are up, but the discount off asking that sellers accept continues to get smaller. A very clear sign that the Boise Metro housing shortage is intensifying as population grows.
Another interesting statistic: The average market time for 2018 on all sold residential listings in Ada county was 23 days. For the first half of 2019, the average was up 2 days to 25. Still very much a seller's market.
Boise Idaho Housing Supply Shortage
This is why home prices are rising so fast in SW Idaho. Growing demand and not enough sellers has held supply levels below a month (can't go much lower) for most of this year.
This charts covers all single-family homes, including new construction, actively for sale or under contract on the first day of each month in Ada & Canyon counties. Given these conditions, Boise area home prices must climb.
Many cities across the country, especially around California, have experienced strong increases in home prices as people migrate, the economy improves and the pent-up demand for housing is absorbed, as this from NAR's Q1 Medians illustrates:
After two very strong years, Boise area home prices have surpassed the national median for the first time, but remain well below the West. I see room for further increases. Even the most expensive metro in the US; San Jose-Sunnyvale-Santa Clara with a median home price of 1.3 million increased 11.6% year over year. No sign of a local bubble near Boise that could burst yet.
Idaho Still Among Fastest Growing States
Source: Realtor Magazine 12/20/18 "The States That Grew The Most This Year"
I have 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.