ADA COUNTY, Idaho — For the second-straight month, the median sales price for Ada County homes reached a new record, coming in at $602,250 in May 2022 as new construction costs increase.
The average sales price increased by 16.1% compared to May 2021, but the number of closed home sales decreased from the same month a year ago, according to Boise Regional Realtors.
28.2% of all sales in Ada County last month were new homes. The median price for a new home costed $639,105, an increase of 17.5% from May 2021.
Meanwhile, Boise Regional Realtors said the number of closed home sales dropped last month, marking the third-consecutive month of year-over-year declines. 894 homes were closed on in May, down 5.8% compared to the same month last year.
"Continued price growth may be puzzling when national economists are predicting a slowdown in prices and sales due to higher mortgage rates and home prices," 2022 President of Boise Regional Realtors, Becky Enrico Crum said. "While we have seen a decline in sales, we haven't yet seen a decline in the median sales price. The data is also beginning to show signs of a shift when it comes to pending sales, or properties with an accepted offer that are expected to close within 30-60 days."
Pending sales dropped by 12.7% in Ada County from last year, with 1,446 in May. When comparing year-over-year numbers, pending sales have declined each month for the past year.
"Pending contracts are telling, as they better reflect the timelier impact from higher mortgage rates than do closings," NAR's Chief Economist, Dr. Lawrence Yun said.
Yun said the national sales data shows six-consecutive months of decline in contract signings. The pace of contract signings are also at "the slowest pace in nearly a decade," Yun noted.
In May 2021, existing homes spent an average of eight days on the market. Last month, homes averaged 11 days on the market.
50.7% of buyers paid over list price when purchasing in May. The average original list price received came out to 100.9% for existing or resale homes, compared to 105.0% last May.
"Agents are used to fielding questions about what's happening in the market, and today's market is no exception," Enrico Crum said. "Higher rates, price growth, and economic uncertainty are top of mind. However, if you're ready and in a position to buy, with the increases in housing inventory we've seen in recent months, you'll have more options than have been available in over two years. On the flip side, sellers have continued to receive great values for their homes. A purchase or sale might not be in the cards for everyone right now, but if you'd like to better understand your options, consider having a conversation with your realtor."
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