BOISE, Idaho — The median sales price for homes in Ada County reached a record $595,000 in April 2022, a 23.9% increase compared to this time last year.
Higher costs for new construction played a part in the overall price jump, with new home sales making up a third of all home sales in April. The median sales price of new homes rose to a record $645,000, up by 36.7% from last year.
Older home prices are rising too, with the median sales price of existing/resale homes reaching $570,000, a gain of 16.9% over last year and a record high.
Mortgage rates have also been climbing, with the 30-year fixed-rate mortgage average reaching 5.1% at the end of April, according to data collected from Freddie Mac.
National economists have predicted that the increase in mortgage rates will eventually slow the market, but there have been no signs in Boise of a price slowdown.
"It's important to remember that homes that closed in April likely went under contract in February and March, so we may not see the immediate impact of rates on prices for a few months," Becky Enrico Crum, 2022 President of Boise Regional REALTORS® said. "Pending sales, or those with an accepted offer that are expected to close in the next 30-60 days, may provide a better indication of how rates are affecting our market at this time."
Potential home buyers may be discouraged by the increasing rates and prices, but there is some good news. In April, inventory increased by 170.0% which may be a sign that housing is shifting to a more balanced market. However, there is still uncertainty as to how inflation, higher mortgage rates, and other economic factors will affect the residential housing market.
"Whether you're ready to buy today or would like to purchase within the next two, five, or even ten years, work with trusted advisors to make a plan to reach your goals," Enrico Crum said. "Taking important steps today, such as improving your credit, researching down payment programs, and saving for your down payment in a tax-sheltered savings account can really make a difference when you're ready to make a move."
According to Boise Regional REALTORS (BRR), there were 1,525 pending sales at the end of April, a 12.1% decline from the previous year, and 815 total sales for the county in April, a 17.0% year-over-year decrease.
Of those sales, 586 were existing/resale homes, which is a 12% decline from 2021. The higher home prices combined with higher mortgage rates have resulted in higher monthly payments for buyers, which could be hampering home sales, according to BRR.
When looking at existing/resale sales data from April, BRR says 53.2% of buyers paid over list price, indicating a strong competitive market, particularly at the median and lower price points.
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