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

The Boise Real Estate Market in May, while busier than April, was slower than in 2013, a trend that started early this year. The 842 closed sales in May were 18.1% higher than April but down 8.1% from May 2013. The increase from April fits with the normal seasonal surge in sales we see in the summer while the drop versus last year’s numbers is of concern now that it seems to be an established trend.  Overall inventory remains at a healthy 3.3 months up from 2.2 months a year ago.  Put another way there were 2818 homes for sale in May a 42% increase over 2013. Despite the sharp rise in inventory the average days on market at 55 is relatively unchanged (+1.9%) except in new construction which saw days on market increase 30.4%.  The reflects a continued sharp decline in the sales of new homes. In May 142 new homes sold, a 21.1% decline year over year. After getting as high as about 25% of all homes sold in January of this year, new construction only represented 16.9% of the market in May. On a brighter note, distressed properties only made up 6.7% of sales volume in May.  This is about as low a share as I can remember since the beginning of the meltdown in 2007, although REO properties do continue to creep back in the picture (+39.1%) albeit on a very low base number of 32 sales.

 

SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR May 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

842

-8.1

100

2818

+42.0

100

$121

+7.7

$243K

+6.1

55

+1.9

3.3

Non Distress

785

-4.4

93.2

2617

+54.4

92.9

$122

+6.9

$248K

+4.2

51

+10.9

3.3

REO

32

+39.1

3.8

79

+79.5

2.8

$95

+11.1

$166K

+23.0

56

+3.7

2.5

Short Sale

24

-65.7

2.9

114

-53.3

4.1

$95

+8.5

$152K

+0.7

160

+14.3

4.8

New Construction

142

-21.1

16.9

786

+38.4

27.9

$134

+11.1

$312K

+9.5

103

+30.4

5.5

 

 

Prices, while still rising year over year, have definitely started to react to higher inventories and lower demand. The average sales price in Ada County was $243,000, up 6.1%.  While still a healthy increase it is a far cry from the double digit increases that began in 2012 and lasted well into 2013.  Similarly the average price per square foot at $121 was up 7.7% year over year.  For new construction the average sales price was $312,000, up 9.5% and the average price per square foot ($134) was up 11.1%. Materials, land, and labor costs take most of the blame and increasingly buyers, especially first time buyers, are being priced out of new construction.  Whereas the sweet spot for existing homes seems to be in the $175-200K range, for new construction the bulk of the sales are between $200K and $400K with the sweet spot falling around $300K.  Here is a breakdown of prices and volume of new construction in May:

 

Ada County Sold New Construction Volume by Price May 2014*

*does not include build jobs not reported in the IMLS

 

Price

Number Sold

0-149,999

0

150,000-199,999

21

200,000-299,999

52

300,000-399,999

43

400,000-499,999

16

500,000-599,999

5

600,000+

5

 

So while volume has definitely slowed and the curve for prices is gradually flattening out, the market remains relatively healthy based on the months of inventory and days on market.  Gone are the bidding wars in most cases but well priced and presented homes are selling quickly and on the flipside buyers are finding they have choices.  Interest rates remain low and qualified buyers are finding banks more than willing to lend, at least judging by the number of new loan products they are rolling out. We may finally be truly settling back into a more “normal” market after riding the rollercoaster for the last 10 years. Personally I continue to have a very strong year thanks largely to the support of the people on this list.  So thanks and keep those referrals coming! Please don’t hesitate to contact me with your questions and comments and have a fantastic summer!

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 June 11, 2014 at 1:05 pm
Cam Johnson | Category: Monthly Real Estate Market Reports | Tagged , ,

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