BOISE, Idaho — The Treasure Valley’s hot housing market is continuing to set new records in Ada County, with the median sales price reaching $354,405 in June.
Ada County’s median sales price increased by 10% since June 2018, according to Boise Regional Realtors. They say there may be three main reasons for increasing home prices.
The first reason is dwindling supply of cheaper housing throughout Ada County.
"There continues to be a shortage of housing, particularly in the lower price points. This has caused the share of higher-priced home sales to continue to rise, further driving up the median sales price for the existing segment, as well as the market overall," Breanna Vanstrom, the chief executive officer for Boise Regional Realtors, said in a statement.
The second possible factor that’s driving up home prices is that new homes are becoming more expensive to build.
"As we’ve noted previously, the rise in new construction home prices is due to the increasing costs of land, materials, shortage of skilled labor, as well as consumer preferences," Vanstrom added.
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She says one thing that is helping home buyers is low mortgage rates, which could also be driving up home prices.
"Low mortgage rates are helpful for buyers and may also be influencing what homes buyers purchase and at what price point," she said. "Since lower rates equates to lower monthly payments, buyers may be selecting a more expensive home that still fits their budget."
Ada County’s housing market is beginning to see homes stay on the market longer and fewer homes being bought.
According to data collected by the Boise Regional Realtors, homes are on the market for 31 days, up 19.2% from June 2018.
In the report, 1,091 homes were sold in June, down 9.4% from June 2018.
The number of homes on the market jumped 22.2% between June 2018 and June 2019, with 1,725 homes listed in Ada County.
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