June 2018 Market Report
ADA COUNTY HOMES SOLD FASTER,
AND FOR MORE, IN JUNE 2018
- The combination of more new homes selling at higher prices pushed Ada County’s overall median sales price up to $324,647 in June 2018 — another record, but one that was expected as we typically see the highest prices of the year in June or July.
- Further reflecting the competitive nature of the market, due to lack of inventory, the market time for existing homes fell to just 16 days in June 2018 – the fastest reported based on data going back to 2004 — down 27.3% compared to the same month last year.
- REALTORS® encourage home buyers to educate themselves on the various offer strategies that will work for them and understand which will not, to avoid going over budget or giving away important protections just “to win” in this fast-moving market.
The combination of more new homes selling at higher prices pushed Ada County’s overall median sales price up to $324,647 in June 2018 — another record, but one that was expected.
We typically see the highest prices of the year recorded in June or July, and as new homes sales have increased — and are selling at much higher prices than existing homes due to rising construction costs — it’s not surprising that the data is reflecting an even bigger bump this June.
The median sales price for new homes in Ada County reached $393,705 in June 2018, while existing homes landed at a median sales price of $299,900. Both were records for their respective segments.
The overall median sales price (for new and existing home sales combined) has been pulled up much faster than in previous years due to an increase in the number of new home sales and an average difference of $90,000 between new and existing home prices, over the past year.
The persistent lack of existing inventory compared to buyer demand contributed to the increase in the existing median home price (which in turn, impacts the overall median sales price), as well as the historically fast pace of sales.
In June 2018, the market time for existing homes fell to just 16 days – the fastest reported based on data going back to 2004 — and down 27.3% compared to the same month last year.
While just three days faster than last month, those extra days matter to buyers when making decisions and drafting offers in this fast-moving market. But REALTORS® caution buyers to stay objective, despite the faster market times, and especially when facing a multiple offer situation.
There are a lot of articles with tips to make your offer more attractive – higher purchase price, fewer contingencies, delayed move-in dates, and so on – but your REALTOR® can help you determine which are best for you and which are not. Be sure you understand everything you’re including so you don’t go over budget or give away important protections “just to win.”
Home buyers should discuss these strategies with their REALTOR® and lender well before they are ready to make an offer – maybe even before they look at their first home.
What will it take for market times and price increases to level out? More inventory. As long as buyer demand remains strong, homes will continue to go under contract quickly. It’s essential that homebuyers work with a REALTOR® to find a home that fits their needs, lifestyle, and most importantly, their budget, while navigating this fast-moving market.
GEM COUNTY HOME PRICES UP IN JUNE 2018
In June 2018, 22 homes sold in Gem County, leaving 73 new and existing homes available for sale at the end of the month — down 6.4% from the same month last year, but up 25.9% from May 2018.
The median sales price for existing homes in Gem County was $193,500 as of June 2018, based on activity over the past 12 months — an increase of 14.6% over the same period last year. For new homes, the median sales price was $211,349 as of June, also based on activity over the past 12 months. This was up 5.4% over the same period in the previous year.
Specifically, in the city of Emmett, closings were down 44.7% year-over-year, as 21 homes sold in June 2018 compared to 38 in June 2017, for existing and new construction combined. Based on activity in both segments over the past 12 months, the median sales price for Emmett was at $185,806 in June 2018, a gain of 6.0% over the same period last year.
Due to the smaller number of homes listed and sold in Gem County — compared to Ada or Canyon County, for example — we look at a longer timeframe to identify trends in home prices, specifically a rolling 12-month median. This helps to smooth out variations in price that may show up in monthly comparisons if there is a very high- or low-priced sale one month and not the next. While this is helpful to understand macro market trends, a consumer who is thinking about buying or selling a home should speak to a REALTOR® to understand the micro trends specific to their specific situation.
This report is provided by Boise Regional REALTORS® (BRR), a 501(c)6 trade association, representing real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.
If you have questions about this report, please contact Cassie Zimmerman, Director of Communications for Boise Regional REALTORS®.
The data reported is based primarily on the public statistics provided by the IMLS, available at: intermountainmls.com. These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. 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. The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings).
by Cassie Zimmerman | Boise Idaho REALTORS®