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

So much for a slowdown!  Last month I noted that while the overall positive trends we had seen so far in 2012 continued there was a definite slowdown in certain indicators either due to normal seasonal variables, decreasing demand due to continued economic uncertainty and weakness, or possibly even pre-election jitters. Well in October none of those factors were able to keep the market from making a strong showing virtually across the board.

As the table and graphs below illustrate October was a very strong month for residential real estate in Boise.  Distressed properties continue to wither away, new construction continues to grow rapidly and prices are up almost across the board, in some cases substantially.  Low supply continues to be a problem for some buyers in some parts of the market however.  Overall the average price per square foot was up 13.6% while the average sales price jumped a whopping 18.9%.  There is still  some disparity between this number and actual appreciation due to the “Apples vs Oranges” shift in product mix that I have alluded to in previous months.  But in some segments of the market, including recently built production style homes, that were especially hard hit during the downturn, there has been real appreciation I believe.  For some other types of property…not so much. See the “Snapshot” tables below for a few examples using data for the 3rd Qtr (not October).

ADA County 2012 vs 2011

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Days on Market

% +/-

Months Inventory

All

655

+10.5

100

2179

-13.3

100

$102

+13.6

$208K

+18.9

73

-18.9

3.3

Non Distress

517

+52.5

78.9

1681

+0.9

77.1

$107

+6.4

$226K

+9.7

61

-28.2

3.3

REO

40

-71.8

6.1

36

-72.9

1.7

$78

+11.9

$145K

+18.9

33

-23.3

0.9

Short Sale

98

-12.5

15.0

462

-35.4

21.1

$78

+1.8

$140K

-5.4

157

-7.1

4.7

New Construction

165

+79.3

25.2

644

+0.8

29.6

$116

+0.6

$263K

+3.5

86

-27.7

3.9

 

A few highlights from the table above:

REO (Bank Owned) properties were only 6.1% of the total solds and represent only 1.7% of available inventory.

Combined with Short Sales those numbers are 21.1% and 22.8% respectively.  Still a factor, yes, but far less menacing than when they were hovering around 50%+ of all closed sales (and 70%+ in neighboring Canyon County) as recently as a year ago.

Conversely, new construction is up to 25.2% of the sold market.  Put another way, 1 in 4 houses sold in October was new construction compared to almost zero a couple years ago.

Interestingly enough though the average price per sq ft of new construction was virtually unchanged from a year ago but builders are getting 100% of their asking price on average.  Are they building less expensive models?  Building materials costs continue to be pretty high for things like concrete and dry wall so how are their margins doing?  Some of the bigger builders control land that they were able to ride through the downturn with or picked up on the cheap during the crisis so they may be better positioned.  Anecdotally, I am hearing from smaller to big size builders that they are having trouble finding lots to build and that land prices are starting to rise partly because the biggest builders control most of the suitable land.

Treasure Valley Snapshots 3rd quarter 2012

SW Boise/Meridian ,3bed ,2bath, 1200-1700sf, built 2004-2008

Year

# Sold

Average Price

Median Price

Average DOM

2012

29

146,796

148,200

41

2011

28

122,123

123,450

77

% Change

+3.6

+20.2

+20.0

-46.8

 

Ada County New Construction Regardless of Size

Year

# Sold

Average Price

Median Price

Average DOM

2012

429

250,000

224,000

100

2011

283

231,000

211,000

98

% Change

+51.6

+8.2

+6.2

+2

 

Boise North End Regardless of Size

Year

# Sold

Average Price

Median Price

Average DOM

2012

113

285,562

244,900

44

2011

92

266,715

231,750

78

% Change

+22.8

+7.1

+5.7

-43.6

 

Eagle, 3+ bed, 2+ bath, 2500-4000sf, Built 2004-2008

Year

# Sold

Average Price

Median Price

Average DOM

2012

17

338,517

307,250

65

2011

14

336,242

317,500

104

% Change

+21.4

+0.7

-3.2

-37.5

 

Report Prepared by Cam Johnson-Windermere Access Realty

So while all this news is encouraging for both sellers and property owners, buyers don’t despair.  Although some buyers are definitely having a hard time finding suitable property due to low inventories, and are watching prices spiral up in the neighborhoods they find desirable, overall it is still a great time to buy.  Prices, while rising are still far far below their previous peak and interest rates continue to be at near record lows, and are at least 2 points lower than they were for most of the 2005-2006 peak.  If you are interested in what the market is doing in particular areas or particular types of property please feel free to contact me.  As always your questions, comments, and above all, 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

Check out my listings here: http://www.camjohnsonhomes.com

 

Posted on November 12, 2012 at 10:43 am
Cam Johnson | Category: Uncategorized

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