Homes Sold in Ada County Sets New Record

December 12, 2017

Ada County home sales surpassed the $3 billion-mark for the first time, based on Total Dollar Volume figures year-to-date, January 1 – November 30, 2017.  Historically, the month of December adds another $100-150 million worth of sales, on average going back to 2005, so we should see Total Dollar Volume exceed $3.1 billion for all of 2017.  Year-to-date through November 2017, nearly 10,000 homes sold in Ada County, up just 2.6% compared to 2016.  Breaking this down by property type illustrates the impact limited supply has had on existing home prices, as well as higher building costs on new home prices.  Existing home sales were nearly even with last year, yet total dollar volume increased by 9.2%.  This means that individual home sale prices had to increase, as buyers competed for persistent, limited inventory of existing homes, which as down 13.2% compared to last year at this time.  In contrast, new home sales were up by 10.9% over last year, with a slight uptick in inventory.  With a more balanced supply of new homes compared to demand, the 17.9% growth in total dollar volume mostly reflects the increased costs of land, materials, and labor that builders are including in new home prices.  Total Dollar Volume, for existing and new construction combined, has been steadily increasing since 2009.  The previous high point was in 2006 when Total Dollar Volume Sold was nearly $2.7 billion.  

by Breanna Vanstrom