Here is Boise Regional Realtors December 2018 Market Report
CLICK HERE to read the entire Report
December 2018 Market Report
2018 BROUGHT RECORD HIGH HOME PRICES IN ADA COUNTY — BUT WHY?
- For the year, Ada County’s overall median sales price ended at $314,000 year-to-date (January 1–December 31, 2018), driven by more new homes selling at overall higher prices, primarily due to rising construction costs, and the persistently low inventory of existing/resale homes.
- While new home sales were up 22.4% in 2018 compared to 2017 — the number of existing/resale home sales over the same period was down 4.1%. Closed sales are limited in the existing/resale segment due to the supply of homes for sale dropping year-over-year for 51 consecutive months.
2018 was another year of record low inventory and record high home prices in Ada County. Last year also gave us the first signs that the market may be shifting back towards balance, and many economists expect that to continue throughout 2019.
The overall median sales price (activity for existing/resale and new homes combined) was often reported as the area norm in 2018. However, to better understand our local market dynamics, it’s important to identify the factors that are driving prices in both segments and how those trends are affecting the overall median.
Case in point — based on past data, when new construction sales made up more than 24% or 25% of the total sales in a given month, the overall median sales price was 12-14% higher than the previous year, on average.
Since March 2018, every month of the year saw the share of new construction sales at or above that level, which had a major impact on the area’s overall median sales price: