Treasure Idaho Market Update:

Increased Inventory and Sales in Ada and Canyon Counties

Ada and Canyon counties are seeing a significant increase in home inventory and sales, thanks to a slight dip in home costs.

In Ada County, MLS data recorded 1,629 homes for sale in May, up by 235 from April. Canyon County also saw growth, with 1,065 homes for sale, a 58.5% year-over-year increase.

While Ada County’s median home price slightly dipped to $551,950 from $556,500 the previous month, it remains 3.4% higher than May 2023. In Canyon County, the median home price in May was $419,945, about $5,000 more than the same time last year.

The increased supply positively impacted sales. Ada County reported 804 sales in May, a 14.7% year-over-year increase, while Canyon County had 432 sales, a 5.4% increase year-over-year.

Nationally, home sales dropped by 1.9% in April, and pending home sales declined by 7.7%, according to the National Association of Realtors. The nationwide median home price is $407,600, which is lower than in the Treasure Valley.

Locally, even with increased inventory, the region has about 2.6 months of supply in Ada County and 2.9 months in Canyon County. A balanced market—one that does not favor buyers or sellers—is typically 4-6 months of supply.

Inflation and interest rates continue to influence home prices. Although inflation is heading toward more “normal” levels, it is unlikely that the Federal Reserve will reduce interest rates before the end of the year. “Inflation is moving in the right direction, but it is not quite at the point for the Fed to cut interest rates,” said Lawrence Yun, chief economist for the National Association of Realtors.

Yun added that consumer price inflation rose by 3.3% from a year ago, and ‘core’ inflation decelerated to 3.4%, its slowest gain in three years. The Fed’s target is 2% inflation. Yun noted that the peak inflation rate of 9% two years ago was a shock and prompted the interest rate hike policy by the Federal Reserve. “The central bank can reverse that policy as better inflation figures continue in the upcoming months.” While it remains uncertain when the Fed will cut interest rates, it is anticipated that reductions will occur through six to eight cycles by the end of 2025.

Yun believes home prices will remain solid and expects home sales to pick up, especially in regions with rising inventory.