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Another Valley home-price record falls, and why new-home building isn’t keeping up

Home builders have increased production but have not kept up with rising demand for houses in the Treasure Valley. New CBH Homes in the Bridgeview Community in Boise in 2014.
Home builders have increased production but have not kept up with rising demand for houses in the Treasure Valley. New CBH Homes in the Bridgeview Community in Boise in 2014. kgreen@idahostatesman.com

The shrinking existing home inventory has pushed prices upward again across the Valley, setting a record in Canyon County, according to Boise Regional Realtors.

In Ada County, the median price for resale homes increased 8.4 percent to $233,000 in March compared with the same month last year. Ada’s record for resale homes was $239,000, set last June.

In Canyon County, median sales priced reached $164,700 in March, up 10.2 percent from the previous year and surpassing the previous record of $160,000, set last July.

The inventory of homes for sale fell from low to lower in the past year.

Lawrence Yun, chief economist for the National Association of Realtors, said home builders nationwide are not keeping up with demand. Builders are eager to meet it, but the high costs of land, material and labor are pushing homes into higher price brackets than many buyers can afford, Yun said in a statement.

In Ada County, listings declined 15.4 percent in March compared with March 2016, while the overall median price increased 6.4 percent to $250,000, according to the Intermountain Multiple Listing Service. New-home inventory increased 8 percent during that time, but existing-home inventory fell by 30 percent.

In Canyon County, listings fell by 10.2 percent. The overall median price increased by 12.2 percent to $175,000, a post-recession record. New home inventory increased by 6.2 percent, but resale listings fell by 20.2 percent.

Zach Kyle: 208-377-6464, @ZachKyleNews

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