March 2021 Market Update – Ada County

March 2021 Market Update - Ada County
What’s going on in the Boise real estate market? It’s time for another market update for Ada county. The Boise Regional Realtors released their market stats and analysis, so let’s take a minute and dig in. You’ve heard me say it and you’ve heard the industry say it. You’ve probably even heard your dog say it. The inventory is low, low, low. Why? Well, we’ve got persistent demand from home buyers, just from general population growth, we have millennials that are coming into the home buying age and then of course there’s inbound migration.

Our area is great and now everyone knows it. On top of that, now there’s the ability for a lot of people to work from home, well from anywhere. Compound that with a historically low mortgage rates and well, housing demand is outpacing supply and it has been for years, But all of it combined has driven the home prices up as well as increased the speed of the market. In February, 2021, the median sales price was $425,400, which was up 25.5% year over year. And the average days on market was just 19 days, which was down 62% year over year.

The increase in home prices are good news for prospective sellers. They can use the equity that they’ve gained to either help and go towards the purchase of their next home, or even use it to perhaps look into investment opportunities.

According to a recent home buyer equity insights report from CoreLogic, Idaho ranked second among all the states in which homeowners gained the most equity between 2019 and 2020. It was $48,500 on average year over year. But while sellers are looking at this nest egg of equity as a possible use towards their next purchase, the tight supply of inventory has made some very hesitant to put their current home up for sale until they find their next one.

There are some really good strategies and options for making this happen. You need a really strong agent to help you work through this. So let’s chat. Honestly, I’ve got some good options for you.

All right, let’s go over the other numbers.

At the end of February, 2021, there were just 168 existing homes for sale. That’s 51.2% less than in February, 2020. However, there were 65 more homes for sale on the market at the end of February, then there were in January. That’s an increase of 63.1% month over month. We are entering our spring market, which typically heats up with an increase in inventory, so let’s hope that this is an early indicator of more inventory to come. Looking at new construction, there were only 135 homes for sale at the end of February, which was 80.6% less than February of 2020.

BRR reported that some builders have indicated that they are selling properties yet to be built. Meaning more new homes are available than indicated in the inventory counts. The supply, or lack thereof, has contributed to the fast competitive market with homes receiving and accepting offers quickly after being listed. Taking a look at just the existing resale segment in February, homes were the market for just 10 days on average, compared to 32 days last year, which is a decrease of 68.8%.

And quite honestly, this number is slightly skewed because one strategy for the multiple offer scenarios is to give a specific date that the sellers will be reviewing offers. So homes are staying on the market until then, which adds days to that days on market number.

If you’re a buyer, you need a really good strategy to get your offer accepted. If you’re a seller and you’re looking to buy and sell it the exact same time, well, you definitely need a really strong strategy. So let’s chat because there’s definitely options to make this happen.
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