The coronavirus has started to take a toll on the Treasure Valley's still-hot housing market, but you wouldn't know it from the latest home-price data.
Records for median sales price were set in both Ada and Canyon counties in March, according to the Intermountain Multiple Listing Service. And the number of homes sold increased significantly in both counties from the same month last year.
The median price for the 899 houses sold in Ada County was $367,000. That's $4,000 above the previous record set in January. The sales volume was up 8% from the 833 homes sold in March 2019.
"There's no question there's still plenty of demand," said Laura Trairatnobhas, an agent with John L. Scott Real Estate. "We just don't have enough inventory in the valley. And that's why houses just keep selling, because no matter what's going on in your life, sometimes you have to move if you don't have any choice."
In Canyon County, March's median hit $272,490, up from the previous record $264,000, set in November.
The median is the price in the middle of the houses sold. Half cost more and half cost less.
Existing homes, on average, sold in 21 days last month in Ada County, five days faster than the 2019 average. In Canyon County, existing homes sold after 29 days, matching the 2019 average. New homes took 78 days to sell in Ada County and 81 days in Canyon.
But one agent says COVID-19 and its related economic conditions, including local job losses and nationwide declines in stock prices, have already had an impact at the the least- and most-expensive ends of the market.
Ann Edmark Reed, an agent with Silvercreek Realty Group, said she has seen a number of listings where the asking price has been reduced.
"I think that the lower-priced and the really upper-priced homes are hurting, because the lower-priced ones are aimed at a lot of the restaurant workers and people in the entertainment business, and the upper ones are marketed toward the people that lost all that money in their 401)k) accounts," she said.
Three weeks ago, shortly after Gov. Brad Little closed nonessential businesses and ordered Idahoans to stay home, Edmark Reed said homes that previously received multiple offers and sold immediately were receiving fewer offers and taking longer to sell.
That's not all. The first two weeks of April have brought a decline in homes going under contract, sad Mike Turner, a broker with Front Street Brokers in Boise.
"It looks like we're down 20% to 30%," Turner said by phone. "That could change before the end of the month, but that's how it's tracking now."
That slowdown could start showing up in the monthly sales reports later this spring. March's sales were buoyed by deals negotiated in January and February that didn't close until March, Turner said. Last April, 946 homes sold in Ada County.
One big changed caused by the pandemic is how homes are shown. Open houses, where anyone mildly interested in a home, can walk through, are out. Before showing a home, Trairatnobhas said she requires a bank pre-approval letter from potential buyers or proof they have the money to buy.
She said she also requires that they view a video of the home before they make an in-person visit, which is limited to just the agent and the buyers. Other family members are not allowed to come.
At the home, Trairatnobhas tells clients to wear masks and to not touch anything. Wearing gloves, she will open cabinets, doors and other objects as she accompanies clients so they can still see everything. She also uses disinfectant wipes to sanitize anything that was accidentally touched.
There were 1,390 homes for sale last month in Ada County and 651 in Canyon County, about a one-month supply. Agents say a six-month supply generally favors neither buyers or sellers. A smaller supply favors sellers, and a larger one buyers.
The first coronavirus case in Idaho was announced halfway through the month on Friday, March 13, the same day Gov. Brad Little issued a state of emergency. By Sunday, April 12, there were 1,427 confirmed cases in the state.
Corey Barton, owner of CBH Homes, Idaho's biggest home builder, said his company's work hasn't been affected directly by the pandemic. As a business deemed "essential," CBH continues construction. But sales were down slightly at the end of March, he said.
Barton expects to complete between 1,200 and 1,400 new homes this year, compared with 1,415 in 2019. Sales might be soft for several months as people wait and see how the coronavirus plays out, he said.
"It's not going to be normal for the second and third quarters, but we hope the fourth quarter impresses," he said.
Other details from the latest monthly listing-service report, which was released Sunday:
Existing homes: The median price for the 552 existing Ada County homes sold was $352,250. In Canyon County, 303 existing homes were sold, with a median price of $259,000.
New homes: The median price for the 347 new homes sold in Ada County was $409,900. In Canyon County, the median price for 212 new homes sold was $293,495.
Highest median prices: North Boise, $720,000; Eagle, $569,000; Northeast Boise, $561,430.
Lowest median prices: Northwest Nampa, $240,995; Southwest Caldwell, $263,990; Northwest Caldwell, $239,400.
