Cam Johnson’s Boise (Ada County) Real Estate Market Report for September 2013

The word on the street for Boise Real Estate in September was “slowdown”. Everyone was talking about it with varying degrees of alarm in their voices . But don’t hit the panic button just yet.  Yes, compared to August things slowed down.  The number of closed sales (728)  was down 18% from August. And yes, somewhat higher interest rates and waning consumer confidence may, as I alluded to in my August report, be a factor, but we all need to take a deep breath and remember it ALWAYS slows down in September due to the seasonal nature of real estate. In reality we had a great September compared to last year.  The number of closed sales was up 21.5% year over year and pending sales are up 7.9%.  And despite all the chatter about the market slowing prices continue to rise. Both the average price per square foot ($115) and the average sales price ($232,000) were up 14.3% vs September 2012.  They were virtually unchanged compared to last month.

Boise (Ada County) Real Estate Stats for September 2013 vs September 2012 –includes condos and townhomes but not manufactured homes.

For more detailed data see graphs below.

 

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Days on Market

% +/-

Months Inventory

All

728

+21.5

100

2712

+18.3

100

$115

+14.3

$232K

+14.3

52

-20.0

3.7

Non Distress

670

+40.2

92.0

2442

+39.4

90.0

$117

+10.8

$237K

+7.7

45

-16.7

3.6

REO

17

-22.7

2.3

72

+67.4

2.7

$91

+20.9

$170K

+25.9

83

+144.1

4.2

Short Sale

39

-60.6

5.4

196

-58.9

7.2

$84

+9.8

$169K

+21.6

157

+25.6

5.0

New Construction

141

+9.3

19.4

693

+7.4

25.6

$129

+7.9

$274K

+4.6

65

-16.7

4.9

 

Low inventory, which acted as a restrictor plate on sales volume earlier this year, has eased considerably and is up 18.3% vs 2012 and about 4% over August 2013. There were 2712 homes for sale in Ada County on September 1st, approximately 1000 more than were for sale on January 1st ( a 54% increase).  That being said we still only have 3.7 months of inventory at the current rate of sales and most would consider that to be a very healthy number.  Inventories also tend to be seasonal and in 2012 inventory started dropping in October.  We may see that happen this year as I don’t see any reason for the market to become flooded with new listings.  Personally I am currently working with 6 property owners who are interested in selling but for one reason or another have decided to wait until spring to list.  There are also some sellers who take their property off the market in the fall in order to avoid the inconvenience of showings and possibly having to move during the holidays.

Distressed sales continue to wither away and represented only 7.7% of closed sales last month.  That is the lowest I have seen it since the downturn.  There has been n increase in the number of bank owned properties on the market in the last few months, but they still only represent 2.7% of total inventory.  New construction also continues to chug forward both in terms of homes sold and inventory coming on-line. There were 161 new homes sold on September an increase of 2.5% versus 2012.  Building really started to take off again in 2012 so we are going against some pretty stout numbers from last year.

Overall the market remains in great shape and presents good opportunities for buyers in the form of continued low interest rates, lenders willing to lend and  a rising inventory of homes to choose from.  For sellers there is continued demand for homes old and new and prices are continuing to rise allow more and more sellers to see positive returns.  I welcome your comments, questions, and, above all, your referrals.  Have a great fall!

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 14, 2013 at 2:49 pm
Cam Johnson | Category: Uncategorized

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