A new report shows sales of new homes in Ada County are helping to drive prices higher for the rest of the real estate market.
For the first half of this year, more than a third of home sales were from new construction, according to Boise Regional Realtors. That’s more than 10% higher than even two years ago.
That, coupled with low interest rates and very low inventory for existing homes, continues to push prices higher.
Boise Regional Realtors CEO Breanna Vanstrom says the problem compounds on itself because current homeowners can’t move out of their current places.
“We just hear from people that say, ‘You know, I’d love to move but I can’t find a house I’m interested in, so I’m going to keep my house off the market,’ which is pretty opposite of what you see in typical markets,” Vanstrom said.
Part of the issue is that wages haven’t kept up with rising prices.
The median salary for the Boise metro area is about $46,000, but a person would need an income of more than $65,000 with a 10% down payment to afford a median-priced home in Ada County.
That price last month? A record $354,000.
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