May ADA Market Report

May ADA County Market Update

ADA County Real Estate Market Insights: May 2023 Report

Welcome to the May ADA County Market Report, where we delve into the latest trends and insights shaping the real estate landscape in ADA County. This month's report highlights adjustments in home prices, the impact on inventory, and growing concerns surrounding affordability. Let's explore the key findings:

Adjusted Home Prices:

  1. In May 2023, the median sales price in ADA County witnessed a 10.9% decline compared to the previous year, settling at $534,900. Notably, this marks a $17,400 increase from the previous month. The lower median sales price can be attributed to increased interest in homes priced between $250,000 and $500,000. Mortgage rate hikes over the past year may have also influenced the downward trend in sales prices.

Existing and New Construction:

  1. Existing homes experienced the most significant adjustment in median sales prices this month, dropping by $75,000. The resale sector saw a 12.8% decline, slightly steeper than in previous months. Conversely, new construction witnessed a more modest reduction of 5.1% compared to the higher year-over-year declines observed since January 2023 (ranging from 10% to 20%).

Decreased Inventory:

  1. May witnessed a 17.2% reduction in the inventory of single-family homes in ADA County compared to the same period last year. This represents the first year-over-year decrease in inventory since June 2021. Resale home options saw a substantial decline of 22.2%, while new construction choices slid by 9.9% compared to May 2022.

Affordability Concerns:

  1. The latest market highlights released by the National Association of Realtors (NAR) underscore the persistent shortage of affordable homes for middle-income families across the United States. Boise, within ADA County, was identified as one of the areas with limited availability of affordable homes for this buyer segment. In just five years, the proportion of affordable homes for middle-income buyers has dwindled from 50% to a mere 23%.

Market Speeds and Sales:

  1. The accelerated market speeds observed this month pose a threat to inventory levels as we head into the summer months. Single-family homes went under contract 19 days faster than the previous month, with an average of 36 days on the market. New construction experienced a notable shift, shortening the time from 93 days in April 2023 to 66 days this month. Existing homes also reduced their days on the market by 7 days. These faster market speeds have brought us back to pre-COVID market times. Despite the challenges, May recorded 699 closings, representing the lowest number of sales for the month since 2012.

In conclusion, addressing supply issues is vital in tackling affordability concerns within ADA County. Increasing inventory, particularly through new construction, will play a pivotal role in providing more options for middle-income families. For personalized guidance and assistance in navigating the market, reach out to a knowledgeable REALTOR® who can help you explore suitable programs to fit your specific needs.

Stay tuned for future market reports as we closely monitor the evolving trends and insights shaping the ADA County real estate landscape.

Learn more from the Boise Regional Realtors 

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