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Boise-area house prices rise again, but the market shows signs of slowing. Here’s why

Boise-area house prices rise again, but the market shows signs of slowing. Here’s why
Posted at 10:20 PM, Jul 10, 2021
and last updated 2021-07-11 00:20:14-04

This article was originally written by Sally Krutzig for the Idaho Statesman.

In May, the median home price in Ada County passed the half-million mark when it jumped 8.7% in one month. But June’s housing report holds a glimmer of promise for hopeful home buyers as growth trends slow. Last month, prices rose by just 0.3%.

Julie Hess, co-owner of Realty One Group, thinks the slowing numbers could be due to past inflation.

“I think part of that is from inflation rates earlier this year,” Hess said by phone. “Just recently, in the last couple weeks, we are also seeing a sharp increase in the interest rates. Inflation and interest rocket up and then they kind of float back down like a feather.”

According to the Intermountain Multiple Listing Service, Ada County’s median sales price was $525,000 in June. In May, the median was $523,250. The median is the midpoint between highest and lowest prices. The average price, which is pulled upward by high-end houses, fell from $617,152 in May to $609,974 in June.

“People are kind of waiting and holding their breath,” Hess said. “They’re wondering if interest rates will go back down. And that impacts buying power dramatically.”

Yet June’s numbers still appear steep when compared to last year’s market. In June 2020, Ada homes were selling at a median of $375,000, meaning prices have increased by 40% over the last 12 months.

The dollar amount spent on homes rose by nearly $100 million between May and June. Ada home sales totaled $592,284,464 in June compared to $487,550,028 in May. The number of homes sold was partly responsible: 971 were sold in June compared to 790 in May.

Hess theorizes the increase in sales can be attributed to both more new houses being completed last month and families being out of school in June.

“I’m seeing a lot of clients from out of state I’m working with have a lot more flexibility in summer,” Hess said. “When kids are out of school, it makes it ideal for closing (on a house).”

CANYON COUNTY PRICES UP NEARLY 50% IN 12 MONTHS

In Canyon County, where 589 homes sold last month, sales saw a larger price increase. The median sale price rose by 3.4% to reach $424,000. That’s 49% higher than June 2020, when Canyon homes sold for a median of $285,000.

The average Canyon County sale price went up by 3.7% in the last month to $451,753.

The median of newly built houses was $552,200 in Ada and $437,565 in Canyon. Existing homes sold at a median of $511,000 in Ada and $400,000 in Canyon.

Sally Krutzig covers Treasure Valley growth and development. Have a story suggestion or a question? Email Krutzig at skrutzig@idahostatesman.com.