Boise (Ada County) Real Estate Market Report for February 2014

After a surprisingly strong January the Boise Real Estate Market tapped on the brakes in February.  440 homes sold which was 4 fewer than in January, which is traditionally the slowest month of the year.  Sales were off 13.7% from February 2013 after being up 11.1% in January.  The only category that reported increased sales was REO (bank owned) up 26.9% on a small base of 33 sales. REO sales have been creeping back into the picture in recent months and were 7.5% of total sales and 3.1% of available inventory. Short sales, on the other hand,  continue to disappear.  22 short sales sold in February (-70.7%)  but they represent only 5% of sales and 7.1% of inventory. Overall inventory was 2214 (+22.1) with average days on market jumping to 82 days and inventory crossing the 5 month mark for the first time in well over a year.  This is not necessarily troubling as inventories were extremely low for quite some time preventing some buyers from being able to find suitable choices.  At current levels most buyer should have a reasonable number of properties to choose from but prices are not being pressured downward by a glut of homes on the market. Or are they?

Speaking of prices, when compared with last year, they continue to appear to be on a roll.  The average price per square foot ($113) was up 9.8% over 2013 while the average sales price ($223K) increased 10.4%. However, if one looks at how prices have trended more recently the picture is quite different.  The average price per square foot is at its lowest level since last August and the average sales price has dropped more than $20,000 since October and is at its lowest level since last April, almost a full year ago. So maybe rising inventory combined with other factors is causing prices to soften somewhat. If the current four month trend of falling prices continues through the normally more active spring selling season then there may be cause for concern this summer.

Nationally there has been a widely reported slowdown in both home sales, especially new construction, and prices.  And while real estate is primarily local, sometimes broader economic factors do have an effect as well.  Conventional wisdom used to say that the market in Boise lagged a year or more behind the country as a whole but that metric may be changing at least for now.

SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR February 2014

*Does not include manufactured homes **see detailed graphs below for more information.

 

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Days on Market

% +/-

Months Inventory

All

440

-13.7

100

2214

+22.1

100

$113

+9.8

$223K

+10.4

82

-7.9

5.0

Non Distress

384

-6.1

87.3

1982

+41.2

89.5

$116

+8.8

$231K

+6.5

77

0

5.2

REO

33

+26.9

7.5

69

+32.7

3.1

$90

+7.3

$177K

+39.4

83

-1.2

2.1

Short Sale

22

-70.7

5.0

158

-55.1

7.1

$88

+5.4

$156K

+4.7

169

+7.0

7.2

New Construction

98

-12.5

22.3

811

+33.6

36.6

$132

+11.3

$307K

+18.5

117

+8.3

8.3

 

Please feel free to contact me with your questions and comments or if you know anyone looking to buy or sell a home in the Boise area.  Thanks

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 March 18, 2014 at 3:22 pm
Cam Johnson | Category: Monthly Real Estate Market Reports, Uncategorized

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