This January started strong and what's going to stop us? There are certainly concerns: how long will low interest rates last? Probably through this election year but after that? Will the lack of affordability begin to limit sales or just drive more rental opportunities? What if we have a pandemic? Even if there is no pandemic, will the coronavirus affect only China? And if China's economy is deeply affected, to what extent will that affect our own economy? And even if there is a recession in the US, will that effect the housing market that doesn't have enough inventory?
For now, the demand for properties in Ada County remains strong. And the strong demand, combined with low inventory, continues to push prices up.
Inventory at the end of January was 20% lower than at the end of last January with only 780 single-family homes, homes on acreages, townhomes, and condominiums on the market. However, sales for the month were 20% higher than sales for January 2019 pushing median and average prices up almost 11% over the past year.
Of the homes sold in January, 39% were newly constructed. New home sales have been helping enormously. The average price per square foot of a new home is only 4% higher than the price per square foot of resale homes, making new homes look like a bargain. The charts below demonstrate how new homes have had a much smoother availability in high versus low total inventory months.