Home prices in Ada County hit a record median high of $256,600 in February and Canyon County median home prices came in just short of an all-time high at $169,754, due to a combination of low supply and increasing construction costs, according to Boise Regional Realtors.
Treasure Valley home prices typically peak in June and other summer months, not in the middle of winter.
“It comes down to supply and demand,” said Katrina Wehr, BRR’s president and managing broker at Keller Williams Realty Boise. “When supply is low, demand is higher, which drives prices up. Our supply has been at record lows for many months.”
BRR reported a 2.6-month available home inventory for February in Ada County and 2.8 months for Canyon County. BRR considers a healthy market with four to six months inventory.
Based on historic patterns, home prices here could continue to hit record highs in the coming months. Over the past five years, June home prices in Ada County were 9 percent higher than February prices, ranging from 2.2 percent higher to 17 percent higher, according to Intermountain Multiple Listing Service statistics.
“We’re hearing things about interest rate changes, so the trends over the past years may not be applicable this year if the rates change,” said Shari Fernandez, BRR’s director of communications.
February saw 25.7 percent more homes sold in Ada County than January – but 5.5 percent fewer than in February 2016. BRR attributes this to 16.1 percent fewer homes on the market from February to February.
But February saw 14 percent more homes come onto the market than January.
“The uptick in spring inventory seems to be happening a month sooner than we typically see, which is welcome news to buyers,” said Katrina Wehr, BRR’s president and managing broker at Keller Williams Realty Boise. “We’re hearing from many sellers who are encouraged by the buyer traffic they’re seeing and the increase in prices.”