Ada County residential real estate continues its remarkable ride. July sales this year exceeded those of last July by 4.4% despite inventory being lower than it was at this time last year by 21%. Pending contracts at the end of the month were slightly lower than they were at the end of last July by 4%.
Prices continue to rise. both the average price ($324,534) and the median price ($285,000) have risen by 14% over the last twelve months. The average price over the past twelve months for a new home is 26% higher than the average price for a resale home. New homes were 9% higher in price per square foot and 15% larger in size than resale homes.
The Joint Center for Housing Studies of Harvard University reports that single family home construction is at its slowest rate in four decades and that 65% of the homes for sale in Boise are in the upper end of the market compared to 50% in a more normal market.
An analysis by the U.S. Department of Housing and Urban Development showed there is a demand for more than 10 times the number of homes being built right now.
The graph below shows that, even though the average price of a home in Ada County is almost 20% higher than it was at the height of the pre-recession market, the price-adjusted average is still lower (adjusted by cost of living over the years covered in the graph).