ADA COUNTY MARKET REPORT
The median sales price in Ada County for June 2023 was $545,000, an 8.0% cut from the same month a year ago but the third consecutive bump up compared to the month preceding. The existing/resale sector remains cooler at $540,000, but still an uptick of $30,000 from May 2023. New construction saw the only month-over-month decrease of approximately $49,000 for a total median sales price of $557,500.
Affordability continues to be shadowed by supply versus demand. However, with pressures from increasing rent prices for two-bedroom homes (according to Rent.com), consumers are looking for workarounds to get into homeownership. Tools such as NAR & Apartment Therapy’s “Real [Estate] Talk” interactive hub and IHFA’s rental assistance programs are helping renters explore their options toward ownership.
Owning a home goes beyond protecting yourself from the mercy of a landlord. Homeownership is a long-term investment that can help you build your overall wealth portfolio. According to recent data released by NAR, middle-income homeowners compounded their wealth by upwards of $120,000 over ten years.
Mortgage applications have been up for three consecutive weeks, showing forward motion for the market. Shrinking inventory may drive prices higher while mortgage rates (currently at 6.81%) urge reprieve from the three-month climb.
There are currently 1,363 homes available in Ada County — 811 existing/resale homes and 552 new builds. This is the fourth month of positive month-over-month trends for single family homes but comes up 36.2% short compared to June 2022.
Single family homes in Ada County are currently going under contract in an average of 33 days, a stark difference from the 10 days we saw last year but more on-par with days on market from before COVID.
Sales were up for all three sectors for a total of 773 sales for the month — broken down to 553 resale homes and 220 new construction homes. June 2023 showed a 5.5% deficit in sales compared to June 2022. Historically, June typically experiences around double the sales that this year has shown.
In addition to pinched affordability, the “Great Relocation” may be a contributing factor for the sluggish season. In the fourth quarter of 2020, owner-occupied households increased by an estimated 2.1 million in a year. Typically, owners spend approximately 13.2 years in their homes, meaning the uptick in purchases may result in a lag for future purchases moving forward.
Buyers are patiently waiting for more options to become available while sellers are hesitant to abandon their attractive interest rates from purchases during the pandemic. It’s important to remember, however, that interest rates can be bought down with the cash equity from your current home if moving is in the cards for you. A REALTOR® can help you find the best solution for your needs.