Biz ‘Bite:’ Ada County home prices reach new high in March

Boise Regional Realtors (BRR) has shared updated statistics around Ada County home prices: 

• The median sales price for homes in Ada County reached $575,000 in March 2022. This jump was driven primarily by the new construction segment, which saw a median sales price of $606,050. The median sales price for existing/resale homes reached $555,000.

  

• Inventory has been increasing in recent weeks, with levels up 103.1% from the same time last year.  
• The number of days on market for existing homes dropped to 15 days, on average, in March. 
• The percent of original list price received on homes in March 2022 was 100.8%, on average. Fewer existing homes sold over list price this year than last year, with the share dropping to 41.3% in March. 

“Many economists are predicting that the increase in mortgage rates will eventually temper home prices,” said Becky Enrico Crum, 2022 president of BRR, in a statement. “While we are still watching for that, the insufficient supply of homes compared to demand will continue to put pressure on local home prices.” 

At first glance, it may seem odd that home prices have gone up so significantly when, on average, buyers are paying close to asking price, BRR stated in its announcement. When a similar home sells, it can become a “comparable” property for future listings nearby; so, as homes appreciate, future asking prices tend to rise as well. 

“It is hard to argue that interest rates will not play an important role in our market and prices going forward,” Ryan Froehlich, 2022 immediate past president and board member of the Idaho Mortgage Lenders Association, said in a statement. “The extent to which is challenging to estimate as we continue to stay in a cycle of high demand and low inventory. Buyers with strong incomes, those looking to sell and repurchase and those coming from high-priced markets outside of Idaho will continue to be in a position to purchase here locally. We are still seeing those borrowers actively looking for real estate.” 

BRR stated the data reported is based primarily on the public statistics provided by the Intermountain MLS (IMLS); these statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period; the IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance.