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

After stumbling a bit in February the Boise Real Estate Market seems to be back on track in March.  Sales jumped 33% in March vs February and March sales of 612 homes were up slightly from 2013.  For the 1st quarter sales were up 1.2% versus last year. Inventories continue to rise as well.  There were 2366 active listings in March a 24.8% increase from last year while at 3.9 months of inventory we are by no means oversaturated with listings.

 

Prices also continue to rise although, as predicted, the curve has flattened considerably as inventories have risen, rates have fluctuated somewhat,  and the economic recovery still seems tentative.  Overall the average price per square foot ($115) was up 7.2% versus 2013 while the average sales price of $232,000 was 5% above last March, which is half or less than the percentage gain we had typically been seeing in the last year or so. As recently as in February prices were up 10.4% versus 2013. While the trend bears watching to make sure we don’t slip into negative territory, if prices stabilize to a 5% annual growth rate most would consider that a very healthy market.  Moderate steady price growth versus steep ups and downs.  At this time last year we were hoping for numbers like these considering that in March 2013 the average $/sf was up 19.4% and the average sales price was up 28.3%!! All the talk was of a second bubble at that point, something I’m not hearing much of now.

 

New Construction which has been enjoying a 2 year renaissance was an area of concern in March. Sales (117 homes) were down 16.7% versus March 2013 while inventory was up 29.2% to 6.7 months worth of available homes.  One would think that prices would have softened somewhat as a result but new construction prices out-performed the overall market with the average $/sf  at $133, up 14.4% while the average sales price rose $17.3% to $305,000.  Some of this price movement may have been due to material and labor prices going up and being passed along by the builders.  So in this case prices seem to have driven sales down rather than sales driving prices down.

 

SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR March 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

612

+1.0

100

2366

+24.8

100

$115

+7.2

$232K

+5.0

78

-8.2

3.9

Non Distress

548

+8.3

89.5

2163

+44.0

91.4

$117

+6.6

$237K

+3.5

75

+2.7

3.9

REO

36

+24.1

5.9

70

+2.9

3.0

$88

-8.7

$165K

-25.3

62

+6.9

1.9

Short Sale

28

-59.4

4.6

127

-60.4

5.4

$96

+11.8

$218K

+38.0

144

-22.6

4.5

New Construction

117

-16.4

19.1

784

+29.2

33.1

$133

+14.4

$305K

+17.3

114

+3.6

6.7

 

This month I also took a look at sales and inventory by price level to see where the sweet spot in the market is pricewise:

 

Ada County Closed Sales and Active Listings by Price March 2014

 

Price Range

# of Closed Sales

% of Total

# of Active Listings

% of Total

< $100,000

17

2.8

34

1.4

$100-199K

304

49.7

853

36.1

$200-299K

170

27.8

701

29.6

$300-399K

76

12.4

406

17.2

$400-499K

27

4.4

134

5.7

$500-999K

17

2.8

200

8.5

$1,000,000+

1

.2

37

1.6

 

 

 

 

 

 

 

 

No major surprises here.  As expected in a rising market there are very few homes available in the under $100K range and the sweet spot seems to be creeping closer and closer to $200,000 as compared to the last time I looked at this in detail over a year ago. While 77.5% of the sales are between $100-300K only 65.7 % of the inventory is in that range.  Homes that sold for over $300,000 represent only 19.8% of sales but  33% of available inventory. And while there currently 37 homes in Ada County listed for over $1 million, only one sold last month.  That means we have about 3 years worth of inventory of million dollar homes!

 

Overall the market seems on a healthy track and my guess is that things will remain headed in the same direction for the remainder of the year.  Please feel free to contact me with you comments, and questions, and don’t forget those referrals!

 

 

Posted on April 11, 2014 at 5:13 pm
Cam Johnson | Category: Monthly Real Estate Market Reports, Uncategorized

Leave a Reply

Your email address will not be published. Required fields are marked *