MORE INVENTORY IN ADA COUNTY HELPED MODERATE HOME PRICES IN APRIL; PLUS, WHY NEW HOMES ARE COMPARATIVELY LESS EXPENSIVE TODAY THAN IN 2007
- An increase in total inventory and a slight decrease in the share of new home sales last month helped hold home prices steady between March and April.
- Comparisons to 2007 are typical when median prices go above $300,000, but in doing so, one must adjust prices for inflation.
- Adjusting for inflation, new homes today are comparatively less expensive than in 2007 when prices were driven by speculation. Current new home prices are impacted by land, labor, and material costs, as well as the low number of “move-in ready” options, compared to demand.