Our local housing market traditionally hibernates during Idaho’s cold winter months. However, current home prices are on the rise — a result of the competitive housing market which is fueled by low mortgage rates and limited supply compared to demand.
The overall median sales price, including existing and new home sales, has reached $434,900 in Ada County, an increase of 24.3% year-over-year, with Canyon County increasing 33.1% year-over-year reaching a medium sales price of $339,445. Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase.
Historically low interest rates have allowed buyers to increase their purchasing power, despite rising prices. According to Freddie Mac, the 30-year fixed-rate mortgage in the U.S. was at 3.11% on average in 2020 — the lowest ever based on data going back to 1971. Does anyone remember the historically high-interest rates in the 1980s?
Since market conditions and mortgage programs change frequently, you need to make sure you're dealing with a top professional who is able to give you quick and accurate financial advice.
A major factor pushing home prices up is insufficient supply compared to demand, especially for existing home sales. The average Days on Market (DOM) metric for existing homes was at 20 days in 2020, compared to 42 days in 2019. In October, DOM dropped to just 13 days — a record low based on data going back to 2004. This means buyers need to act quickly and write a competitive offer.
On the last day of December 2020, there were just 333 homes available for sale, for both existing and new construction combined — 79.6% lower than December 2019 and a record low based on data going back to 2004.
However, there is some speculation that the low-inventory crunch will ease somewhat as we move through 2021 for two reasons:
The City of Trees has seen the highest jump in rent prices among U.S. cities during the pandemic, according to a new study. Rents in Boise jumped 12.4% from January 2020 to January 2021.
As we continue to monitor how COVID-19 is affecting the community, we wanted to share helpful resources. Nothing is more important than your health and safety. During this uncertain time, please don't hesitate to reach out with any questions you have about your home value, current housing market conditions, or anything else we can assist with.
Those thinking about selling or buying shouldn’t be concerned with ‘timing the market’, because the best time to buy or sell is when it fits your needs and circumstances. If you’re thinking about making a move, talk to your Real Estate Counselor and explore your options.
The Real Estate Counselors have a rich legacy dating back to 1977 with experience in residential, investment & commercial real estate sales and property management. Our experience and professionalism are without rival in the local real estate industry.