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Ada County Home Prices Rose Again in May
The median sales price for homes in Ada County reached $602,250 in May 2022, an increase of 16.1% compared to the same month last year, and a new record for the county.
As we saw in March and April, higher prices in the new construction segment contributed to the overall price jump. New home sales made up 28.2% of all sales in May with a median sales price of $639,105, up 17.5% from last year. Home prices also rose to a new record in the existing segment with a median sales price of $586,750, a gain of 16.0% over last year.
There were 894 closed home sales in May 2022, a decrease of 5.8% compared to May 2021, and the third month of consecutive year-over-year declines.
While continued price growth is somewhat puzzling when national economists are predicting a slowdown in prices and sales due to higher mortgage rates and home prices, 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.
In Ada County, there were 1,446 pending sales in May, down 12.7% compared to the same month a year ago. Pending sales have declined year-over-year each month since May 2021.
"Pending contracts are telling, as they better reflect the timelier impact from higher mortgage rates than do closings," said Dr. Lawrence Yun, NAR's chief economist. Referring to the national sales data as a whole, Dr. Yun noted that, "The latest contract signings mark six consecutive months of declines and are at the slowest pace in nearly a decade."
Competition in the market waned some compared to a year ago. Existing homes that closed last month spent an average of 11 days on the market, compared to eight days in May 2021. Additionally, 50.7% of buyers paid over list price, resulting in an average original list price received of 100.9% for existing/resale homes in May 2022, compared to 105.0% in May 2021.
Agents are used to fielding questions about what's happening in the market, and today's market is no exception. Higher rates, price growth, and economic uncertainty are top of mind. but prospective buyers will have more options than have been available in over two years because of the increases in housing inventory we've seen in recent months. On the flip side, sellers have continued to receive great values for their homes.
Whether you're ready to buy today or would like to purchase within the next two, five, or even ten years, work with trusted advisors to make a plan to reach your goals. Taking important steps today, such as improving your credit, researching down payment programs, and saving for your down payment in a tax-sheltered savings account can really make a difference when you're ready to make a move.
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