Boise (Ada County) Real Estate Market Report for September 2012

The major news in the Boise Real Estate Market in September was a slow down, but general continuation, of the positive trends that have emerged earlier in the year.  Inventories are still very low, but are edging up a bit.  Average sales prices are still rising but not quite as quickly as they have in the last few months.  Short sales and REO properties are less and less of a factor in the market each month but the drop in market share has stabilized a bit.  New construction continues to surge versus 2011 but slowed versus August 2012. 

 

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Days on Market

% +/-

Months Inventory

All

579

-8.1

100

2292

-12.5

100

$100

+10.8

$202K

+16.1

64

-29.7

4.0

Non Distress

461

+20.7

79.6

1752

+1.2

76.4

$105

+5.1

$218K

+9.0

53

-35.4

3.8

REO

22

-82.7

3.8

43

-73.1

1.9

$75

+5.7

$135K

+7.1

34

-41.4

2.0

Short Sale

96

-20.7

16.6

497

-31.6

21.7

$76

+1.1

$140K

-0.7

122

-20.8

5.2

New Construction

128

+40.7

22.1

645

-2.0

28.1

$119

+7.4

$263K

+15.9

79

-39.7

5.0

 

A large part of the slowdown may be due to the Spring-Summer selling season winding down in the fall and winter months as it typically does.  The trends were similar in 2011.  We may also be seeing a general stabilization of a market that in some segments was starting to overheat, for example the $125K “Sweet Spot” I have alluded to in previous reports.  There may also be a bit of election year uncertainty especially among investors.  Regardless, for the most part the numbers still look very solid.  The one number that jumps out as being of concern is the total number of closed sales in September, which at 579 was an 8.1% decrease from 2011.  However pended sales, an indicator of future closings, were up 3.3%.  Price per square foot continued to show solid increases from 2011 but were generally down a few percentage points from August 2012.  And while days on market, at 64, continued to be way below 2011 (-29.7), months of inventory crept up to 4.0, the highest since February, but still way below the 6 months of inventory most analysts consider a stable market.

New construction continues to be a particularly bright spot, with sales up 40.7% versus 2011, although the number of closed sales dropped 18.5% from August 2012.  Prices of new construction have also continued to rise.   The average sales price of new construction in September was $263K (+15.9%) and the average sale was at 101% of asking price, probably due to buyers opting for more upgrades. Distressed properties represented just over 20% of all closed transactions compared to 39.4% at this time last year and close to 50% at times in 2010 and early 2011.

Overall, with interest rates continuing to hover at near record low rates and the job numbers slowly improving the outlook is good.  It not only remains a great time to buy if you can find the right home, but sellers are getting some relief from the relentless price drops and competition from distressed properties that was the name of the game for over 4 years.  Please feel free to contact me with you questions and comments.  Also please share this report with anyone you think might be interested and as always, your referrals are greatly appreciated.

Cam Johnson

Realtor®

Windermere Access Realty

1412 W Idaho St.

Suite 120

Boise, ID 83702

208-258-2222 Office

208-283-3664 Cell

208-258-2230 Fax

 

camjohnson@windermere.com

Posted on October 15, 2012 at 4:40 pm
Cam Johnson | Category: Uncategorized

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