Idaho Housing Market Report: Sales Lag Behind Last Year’s Pace

Home sales in the Ada County, Idaho housing market are still lagging behind the record-setting numbers recorded in 2006, according to the Intermountain MLS Sales Survey reported this week by the Ada County Association of Realtors.
However, the figures indicated that the number of transactions that closed in June continued on pace with numbers seen in previous months this year.

February and March showed closed transactions at 568 and 723, respectively, followed by a slip to 696 in April. In May, which is typically the start of the spring buying season, 723 sales closed.

June closings were 710, down slightly from May, but 35 percent less than the 1,135 recorded during last year’s near-record highs.

“There are many positives in today’s market, from job creation to economic growth to historically low mortgage interest rates,” said ACAR President Sue Nielsen. “Buyers who are on the fence should reconsider their position, and look at their local market again. They’ll never have better inventory to choose from.

Earlier this year, there were as many as 400 new listings each month. In June, the number of new listings increased only 100 compared to May. Those who wait too long are going to find fewer homes to choose from and the possibility of higher rates not too far down the road.”

Nielsen said the number of sales last month to Idaho mortgage shoppers ”are more comparable to a normal market.”

The median sales price in Ada County last month was $235,090, down slightly from June 2006.

“We are seeing the most activity in the $200,000 to $250,000 price range,” Neisen said. “Homes sold in this price range increased by 21 percent compared to May. Sales in the $400,000 to $500,000 range were down by 41 percent. Most families are looking for homes that they can afford, and most families can’t afford $500,000. Having a good supply of affordable housing helps strengthen our communities.”

The highest reported median sales price was in Eagle at $374,950, while the lowest was $176,250 in the Boise Bench area.

Nationally, the median existing single-family home price was $223,000 in May, which is 2.4 percent below a year ago, according to the National Association of Realtors. This could open the door to home purchase loan borrowers that need low prices to afford property.

SOURCE: The Idaho Stateman