Nationally, Idaho’s leading the way in home price increases

Teya Vitu//June 8, 2018

Nationally, Idaho’s leading the way in home price increases

Teya Vitu//June 8, 2018

A home under construction in east Boise. Despite large housing construction projects around southern Idaho, a shortage of housing inventory is contributing to a sharp increase in Ada County housing prices. Photo by Anne Wallace Allen.

Home prices were up in all 50 states in April, year over year, with Washington, Idaho and Nevada surpassing 12 percent increases, nearly double the national average, according to CoreLogic.

The Irvine, California, real estate data provider calculated an Idaho home price index increase of 12.4 percent from April 2017 to April 2018 with the Boise metro increase at 13.2 percent. Boise Regional Realtors’ April statistics have an Ada County median home price increase of 16.05 percent for the same period to $295,000, and Canyon County at 16.43 percent to $209,450.

CoreLogic pegs Washington at 12.8 percent and Nevada at 12.2 percent but Oregon only at 7 percent. The national average was 6.9 percent.

CoreLogic measured the home price increase in Coeur d’Alene at 13.4 percent, in Idaho Falls at 14.4 percent, in Pocatello at 6.5 percent and in Lewiston at 5.9.

CoreLogic’s home price index is based on repeat sales transaction of single-family homes over a period of time.

CoreLogic also noted Idaho homes have the sixth-highest equity gains in the first quarter with an average equity gain of $25,000. California, Washington, Hawaii, Nevada and Utah had higher equity gains. The average U.S. homeowner saw a $16,300 gain in home equity.

Idaho’s role as the fastest growing state in population plays a role in the surging home prices nearly leading the nation in rate of increase, Boise Regional Realtors suggests.

“Home prices are influenced by population growth, demographic shifts, and economic factors, but perhaps the biggest factor is low inventory,” said Gary Salisbury, BRR’s president and senior sales consultant with Equity Northwest Real Estate. “Nationally and statewide, we’re seeing the effects of low inventory and high demand on home prices, and the Boise region certainly isn’t immune.”

Premier Technology in Blackfoot is breaking ground on a 70,000-square-foot expansion that is expected to add 150 employees to its existing 300. Douglas Sayer, chief business officer and co-owner of Premier Technology, said there’s a shortage of housing inventory in eastern Idaho and added that businesses might need to take responsibility for housing.

“Companies like us, we need to get involved in that (providing housing),” Sayer said.