June 2021 – Current State of the Market for Owners

RMA wishes all our owners safe sequestering!
Please read our COVID 19 update:

Idaho has had a turn for the best with the COVID-19 spread! Hospitalizations are still on the decline.  As of May 26th, 149 new cases were recorded that day bringing the total number to 191,546 with 2,087 deaths. As of May 26^th, 1,2076,200 doses of vaccine have been administered to Idaho residents.   Idaho has been advanced to Stage 3 Order.

The combination of heightened buyer demand, record-low inventory, historically low mortgage rates, increased lumber costs and booming migration rates has resulted in one incredibly hot, fast-paced, and fiercely competitive housing market for the Treasure Valley. If you’ve recently perused the internet for real estate listings – or taken a drive and actively looked for “For Sale” signs – you’ve undoubtedly noticed the stark lack of pre-existing homes listed for sale. Meanwhile, the valley’s rapid growth comes up in just about every conversation. Regardless of setting – social or professional – Boise’s population boom is being discussed in every coffee shop, playground, bar, gym, etc. across the valley. Thus, we are seeing ECON 101 play out in our local real estate market: the balance or rather imbalance between supply and demand – and its effective impact on pricing is being felt throughout the valley.

If you look at all the single-family home sales that took place across Ada County throughout the last full month (April 2021) – so this includes both pre-existing homes being resold and newly constructed homes – and compare those numbers to the same month one year ago (April 2020), the numbers speak for themselves.  The median sales price increased 27.2% (reaching $467,325), inventory decreased 78.8% and homes sold 50% faster than they did one year ago. 

With those high-level stats in mind, it is interesting to take a step back and rewind TWO years ago when we were also witnessing what were (at the time) record high prices – due largely to low inventory and, you guessed it, high demand. Today we are witnessing the same trend – only intensified (and undeniably more intricate due to the impact of other factors such the pandemic, skyrocketing lumber costs, high migration rates, etc.).