As the share of new home sales continues to increase, so does the overall median sales price. In January 2020, 40.2% of all home sales were new construction, up 8.2% compared to January 2019. New homes are typically priced higher due to increasing cost of land, labor, and materials.
Persistent demand from home buyers compared to the record low number of existing/resale homes for sale — just 361 existing homes available, down 28.1% from January 2019 — also drove prices up.
While condos, townhomes, and mobile/manufactured homes are a small part of our area’s overall housing supply, these property types may offer buyers additional options at lower price points.
Home prices in Ada County hit a new record high median of $363,000 in January 2020 due to an increasing share of new home sales, and, a lack of supply of existing homes compared to demand.
As we’ve noted before, the Ada County housing market has been shifting to a new norm with new construction sales gaining more and more of the total market share. In January 2020, new construction sales made up 40.2% of all sales — an 8.2% increase from a year ago. New homes are typically priced higher primarily due to increasing cost of land, labor, and materials. In January 2020, the median sales price for new construction was at $419,440 — up 12.2% from the same month last year.
Persistent demand (as indicated by pending sales) compared to the record low of number of existing/resale homes for sale in January 2020 also drove up prices for the existing/resale segment, and in turn, the overall median sales price.. There were only 361 existing homes available to purchase at the end of the month — down 28.1% from January 2019 while pending sales were up 5.4% year-over-year. In January 2020, the median sales price for the existing/resale segment was at $340,000 — up 18.7% from the same month last year.
Rising prices and fewer options can be discouraging for those looking to buy, but it’s important to note that the median sales prices noted here are based on sales activity for single-family homes with or without acreage. As a reminder, the median sales price is simply the point at which half of the homes that sold during the month sold for more, and half of the homes sold for less.
Furthermore, BRR’s market reports have traditionally focused on single-family activity only, but there are additional property types available. For example, in January 2020, there were 39 town homes that sold in Ada County for a median sales price of $264,500. This left 45 town homes available for purchase at the end of the month. (NOTE: Learn more about sales activity and median prices of these property types in our new Condos, Town homes, and Mobile/Manufactured Homes Market Report.)
Your REALTOR® has access to the latest and most comprehensive database of local homes for sale, including town homes and condos which are sometimes available at lower price points. In addition, current low mortgage rates are helping to increase buyers purchase power. If you are considering a move, make sure you are working with a mortgage lender and a REALTOR® to understand all the options available to you for financing and inventory.
To read the full article and report from the Boise Regional Realtors please visit FULL MARKET REPORT