Boise (Ada County) Real Estate Report for June 2012

June’s market for the most part continued the exciting trends we have seen develop over the last few months. 

Strong buyer activity fueled by record low interest rates and improved buyer confidence but hampered by low inventory is causing multiple offers and bidding wars which is in some cases driving prices up. 

The product mix is shifting dramatically away from distressed properties, particularly bank owned ones, back to “traditional” sales with new construction leading the way, which is also causing the average sale price to rise.

Appreciation in actual home values has yet to increase substantially but has certainly stabilized after 5 years of declines.

The table below illustrates the situation pretty well:

 

Type

# for sale

% vs 2011

# sold

% vs 2011

# pended

% vs 2011

$/sf

% vs 2011

Avg Sold Price

% vs 2011

Inventory

(months)

All

2215

-24.0

701

0

764

+15.8

101

+11.6

204,000

+10.9

3.2

New Construction

601

-18.0

122

+29.8

159

+80.7

116

+0.5

249,000

0.0

4.9

Non Distressed

1677

-15.2

534

+36.2

600

+56.7

108

+6.3

225,000

+4.2

3.1

REO (Bank Owned)

28

-80.3

62

-68.4

37

-74.7

78

+10.5

143,000

+5.9

.5

Short Sale

510

-35.2

105

0.0

125

-3.8

73

-4.0

133,000

-8.3

4.8

 

 

A few interesting additional points:

While new construction is surging, the prices builders are getting has not.  In fact the average sold price was flat for new homes and the average price per square foot edged up only .5%.  Possibly buyers are steering away from distressed properties as the builders have adjusted their product mix to be more attractive to buyers in slightly lower prices ranges who are having difficulty finding a home.

There were only 28 active Bank Owned listings in June which represents 1.3% of the total market.  Who would have thought that a year or two ago?  There were 62 sold in June however which is 8.8% of the market.

Short sales keep chugging along though.  While the number available has dropped substantially since 2011, the number sold and pending has stayed pretty steady in a certain range throughout the last year.

Distressed sales were only 23.7% of the sold market in June compared to 42.9% last year.

 

Sellers:

Buyers are out there and well priced properties are selling quickly.  Sellers got 98% of their asking prices in June.  But don’t look at the table above showing an 11% rise in prices and conclude that the price of your property has increased 11%.  It just isn’t so.  Any increases in true value are much more modest or non-existent so far.  The good news is that looks to start improving if the current market trends sustain themselves.

 

Buyers:

It’s a great time to buy!  Rates are low and prices are still low as well.  If you were waiting for the bottom you missed it.  Sorry!  Serious buyers need to be prepared with strong financing approval in hand and the mindset that they will be competing against other buyers for the limited number of desirable properties available.  Make sure you do your homework and when you find the property you want be prepared to right the strongest, cleanest offer possible quickly or you will find yourself sitting on the bench.

 

As always your questions, comments, and referrals are welcome.  Feel free to share this information.

Posted on August 15, 2012 at 11:46 am
Cam Johnson | Category: Uncategorized

Leave a Reply

Your email address will not be published. Required fields are marked *