Boise (Ada County) Real Estate Market Report for March 2013

March was another interesting month for Boise Real Estate as prices continue to soar and inventory remains very, very low.  The average price per square foot rose 19.4% to $107 while the average sales price rose 28.3% to $222,000 versus 2012.  It is tempting to say this is the beginning of another bubble because prices rising that quickly are unsustainable.  However the rise in prices is still somewhat misleading as we continue to shift the product mix of what is selling away from lower priced distressed properties and towards new construction and “traditional” re-sales.  If you look just at non-distressed properties the price per square foot was up only 11.9%–still very positive but not quite as scary as 19.4%.  I think that 11.9% number is a much truer reflection of what the average home’s value has risen in the last year.  New construction average price per square foot was up 7.6% reflecting not only strong demand but also rising prices for materials.

 

Inventory, at 1892 units continues to be as low as it has been in many years and this is certainly helping to pressure prices upward even as we start to compare to some pretty strong numbers from 2012. Overall inventory was down 7.2% mainly due to the sharp drop in short sale inventory (-45.7%), while REO inventory actually shot up in March  but on a very small base (3.6% of total inventory). Looking at months of available inventory we are at 3.2 months overall, but only 3.0 months for non-distressed properties.  Remember, 6 months is considered a stable healthy market. Average days on market for non-distressed properties has also dropped significantly to 74 days (-21.3%), compared to 188 days for short sales.  Apparently that process is still taking as long or longer even as their numbers dwindle.

 

Market Stats for Ada County Single Family, Condo, and Townhomes:

 

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Average

Days on Market

% +/-

Months Inventory

All

591

+0.7

100

1892

-7.2

100

$107

+19.4

$222K

+28.3

86

-12.2

3.2

Non Distress

492

+36.7

83.2

1500

+6.0

79.3

$110

+11.9

$230K

+18.6

74

-21.3

3.0

REO

29

-74.3

4.9

68

+119.4

3.6

$96

+33.2

$221K

+72.7

58

+13.7

2.3

Short Sale

68

-40.4

11.5

320

-45.7

16.9

$86

+11.9

$160K

+4.6

188

+18.2

4.7

New Construction

139

+43.3

23.5

606

+2.9

32.0

$116

+7.6

$259K

+19.4

110

+3.0

4.4

 

Not surprisingly, as prices have increased over all the sweet spot of the market has moved up as well.  It had been hovering around $125K and it now seems to be more in the $175K range as the table below illustrates.  Also of note is the sharp drop in the number of sales under $150K and the corresponding sharp increase in the number of sales above $150K.  Even the “high end” of the market is showing vigorous growth—sales of homes priced above $500K in March were up 118.2%!

 

Price Range

# Sold

% Change from 2012

% of Total sales

< $100K

40

-64.3

6.8

$100,000-149,999

142

-23.7

24.0

$150,000-199,999

161

+30.9

27.2

$200,000-299,999

139

+25.2

23.5

$300,000-399,999

70

+105.9

11.8

$400,000-499,999

15

+50.0

2.5

$500,000 +

24

+118.2

4.1

 

While low inventory is hampering some buyers, it is still a great time to buy as interest rates remain solidly below 4%.  Buyers should be prepared for multiple offers, price escalations, and/or bidding wars on the most desirable properties but it may be worth jumping into the fray sooner than later as prices are definitely still rising and interest rates are forecast to be as much as a full point higher by year’s end.

 

Your questions, comments, and above all, referrals are always appreciated.  Bring on Spring!

 

Graphs below for those interested in more details

 

 

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 April 16, 2013 at 3:27 pm
Cam Johnson | Category: Uncategorized

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