A key factor in the price spikes has been the lack of housing on the market.
BOISE, Idaho – The Treasure Valley housing market could approach a tipping point.
In the past year, the median price of a single-family home in Ada County has fallen only twice, according to the Intermountain Multiple Listing Service monthly reports. From May to June of this year, it increased slightly, from $ 523,250 to $ 525,000.
The little bump comes as inventory has increased recently. This is a smaller increase than most months of last year. A key factor in the price spikes has been the lack of housing on the market.
Inventory in Ada County – the time it would take for all homes to sell if there were no more on the market – fell from 0.2 months in 2020 to 0.7 in June, according to Christina Ward, real estate agent at Keller Williams Realty Boise. .
There were 729 listings in Ada County at the end of June, according to the Intermountain Multiple Listing Service. This number was 570 at the end of May and 361 at the end of April. While the median price is still 40% higher than the $ 375,000 in June 2020, the increase in inventory could lead to a potential calming of the price spike.
Mike Pennington, a John L. Scott Real Estate agent who writes a monthly report, took note of the potentially changing landscape.
“We may finally be at a point where we are starting to see a correction,” Pennington wrote. “Not a crash, just a cap on our real estate market. If this is indeed the case, it is really necessary.
In Canyon County, the median price fell from $ 410,000 in May to $ 424,000 in June, according to the Intermountain Multiple Listing Service. This is a 48.8% increase from the June 2020 median price of $ 285,000.
Canyon County’s inventory is 0.6 months for resale homes and 1.3 months for newly built homes, Ward said. A balanced market would have around four or five months of inventory and the national duration is around three months, she added.
The new data for June could be caused by a seasonal change in more listings or fewer buyers. Perhaps more and more people are just simply becoming more comfortable selling their homes as more and more people receive COVID-19 vaccines.
“To see this small increase in inventory, it’s been such a relief for buyers to compete with maybe three instead of 20,” Ward said.
The average number of days on the market in June remained low in both counties, based on Intermountain MLS data. In Ada County, it went from 12 days to 10. In Canyon County, it went from 12 to 13.
Ultimately, the next few months will determine if the increase in inventory is here to stay.
“It’s not a question of whether the market is going to change,” Ward said. “It’s a question of when. Markets are always changing.
Paul Schwedelson covers Growth, Nampa and Caldwell. Follow him on Twitter @pschweds.
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