Ada County Home Sales Pick Up in June

By Breanna Vanstrom, Chief Executive Officer, Boise Regional REALTORS^®

Following two consecutive months of year-over-year declines, home sales in Ada County were up 3.4% in June 2020 compared to June of 2019. Pending sales, or properties with an accepted offer that should close within 30-60 days, were also up 17.0% year-over-year.

This rebound in closed and pending sales was due to pent up buyer demand and the fact that our market was strong before the pandemic hit our region. While our local housing market may continue to be impacted by the ongoing COVID-19 crisis on some level or another, this uptick in sales and homes under contract is a good sign.

Home prices also increased in June with the overall median sales price reaching a new high at $375,000. This was 6.3% higher than in June of 2019, and less than a percent higher than the previous high from April 2020 of $374,900. Prices continue to be driven by a lack of existing supply compared to demand, and more than one-third of all home sales represented by new construction.

One way to measure the supply vs. demand relationship is by using the Months Supply of Inventory metric (or MSI), which compares the number of sales (buyer demand) to available inventory (supply). A balanced market — not favoring buyers or sellers — is between 4-6 months. In June 2020, the overall months' supply of inventory was at just 1.0 months — the lowest number we've seen since January 2016 when we began tracking MSI. Inventory is constricted even further in the existing/resale segment with only 0.6 months' supply in June.

Inventory is needed across the board, but demand is especially high for existing homes. If you're considering selling but want to limit interactions with the public, talk to your REALTOR® about virtual tours, tactics to minimize foot traffic, personal protective equipment, and other ways to keep yourself and others safe.

To view the Treasure Valley Market Report for June, CLICK HERE.