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

July was another solid month for the Boise Real Estate Market.  While sales declined versus 2013 for the 4th straight month, the market a year ago was considered by many to be on the verge of overheating.  Similarly the pace of price appreciation has slowed significantly but is at a much more sustainable level than in most of 2013. 

 

Specifically there were 881 closed sales in July in Ada County, a 9.1% decline from 2013. But in 2013 sales were 35.1% above 2012, so one could argue that it isn’t realistic to compare the two.  If we take a longer term view and include 2012 sales in July were up 25.9%. And despite declining in 5 of 7 months in 2014 the 12 month running average is still up 1.9%. So while we all would like to see the market steadily expand I am not too concerned at this point about its overall health especially given that both Average Days on Market (53) and months of inventory (3.5) remain at very respectable and healthy levels.

 

Price increases also have dropped from a rolling boil to a simmer and this is probably a good thing for the long term given that both interest rates and inflation remain low and the job market, while improving, remains somewhat tenuous. The average sales price increased 4.3% in July versus 2013 to $244,000. The average price per square foot ($121) meanwhile was up 6.7%. I believe both those percentages outpace current inflation thus the “simmer”.  Comparing 2013 to 2012 we see a different story—average sales price +16.5% while $/sq foot was +12.1—a boil. Most “experts” feel price increases of 3-8% are sustainable and indicators of a generally healthy market given current inflation levels.

 

What is interesting is that a large portion of the overall price increases are being driven by new construction which saw an 18.8% average sales price increase versus 2013.  If we back out new construction the overall price increase drops from +4.3% to only +2.3%.  Also the average price of a new home ($328K) is almost $85K higher than that for an existing one and this is forcing some buyers out of new construction as evidenced by the sharp decline in new home sales in the last 4-5 months.

 

One other highlight this month is the continuing steep decline in distressed sales.  While still above historical pre-crash levels they are the lowest I can remember. Combined REO’s (Bank Owned) and short sales were just 5.5% of all closed sales.  REO’s make up the majority of those sales (34) and REO inventory is up somewhat (+12.1%) on a small base of 65 listings.  This is more than offset however by the collapse of shortsales—14 sales in July (-77.0%) and 112 listings (-52.7%).

 

SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR July 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

881

-9.1

100

3042

+24.7

100

$121

+6.7

$244K

+4.3

53

+3.9

3.5

Non Distress

830

-4.7

94.2

2857

+33.3

93.9

$123

+5.9

$250K

+3.3

51

+27.5

3.4

REO

34

-5.6

3.9

65

+12.1

2.1

$89

-4.1

$139K

-9.2

58

-30.1

1.9

Short Sale

14

-77.0

1.6

112

-52.7

3.7

$98

+6.8

$166K

-0.6

148

-15.9

8.0

New Construction

165

-8.8

18.7

803

+36.1

26.4

$136

+8.9

$328K

+18.8

74

+12.1

4.9

 

Looking forward into late 2014 I feel as though what I call the “Normalization” of our market after a 10+ year roller coaster ride will likely continue.  The economy, while not robust, does show signs of improvement and more importantly, the much talked about spike in interest rates has failed to materialize so far. And banks have reportedly begun lowering lending guidelines slightly in favor of Buyers. Qualified Buyers should continue to find access to credit and an ample choice of homes to choose from albeit at slightly higher prices.  Sellers who price and present their homes well should continue to find Buyers in a reasonable amount of time.  In short, the market is working pretty well in Boise, and barring some major macro-economic change I believe it will continue to do so at least for the short term.  As always your questions, comments, and referrals are all welcome.  Enjoy the rest of your 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

Check out my listings here: http://www.camjohnsonhomes.com

Current Boise Real Estate Market Data

 

View my profile on LinkedIn

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Facts and Trends

TM

Published August 2014*

Location:

  ADA COUNTY

Price Range:

  $0 – No Limit

SQFT Range:

  0 – No Limit

Property Types:

  Single Family, Single Family w/ Acr, Condo, Townhouse – All Properties – All Properties – All Properties

Bedrooms:

  0 – No Limit

Bathrooms:

  0 – No Limit

Year Built:

  0 – No Limit

Prepared for you by: Cam Johnson-Windermere Access Realty

 

Number of Homes For Sale vs. Sold vs. Pended (May. 2013 – Jul. 2014)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jul. 14

Jun. 14

% Change

Jul. 14

Jul. 13

% Change

May. 14 to Jul. 14

May. 13 to Jul. 13

% Change

For Sale

3042

2948

3.2%

3042

2439

24.7%

2936

2208

33%

Sold

881

871

1.1%

881

969

-9.1%

868

922

-5.9%

Pended

845

881

-4.1%

845

833

1.4%

862

874

-1.4%

 

Average Price per SQFT (May. 2013 – Jul. 2014)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jul. 14

Jun. 14

% Change

Jul. 14

Jul. 13

% Change

May. 14 to Jul. 14

May. 13 to Jul. 13

% Change

Avg. Sq. Ft. Price

121.5

119.9

1.3%

121.5

113.9

6.7%

120.6

112.3

7.4%

 

Avg CDOM & SP/Orig LP % (May. 2013 – Jul. 2014)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jul. 14

Jun. 14

% Change

Jul. 14

Jul. 13

% Change

May. 14 to Jul. 14

May. 13 to Jul. 13

% Change

Avg CDOM

53

52

1.9%

53

51

3.9%

53

54

-1.9%

Sold/Orig LP Diff. %

97

97

0%    

97

98

-1%

97

98

-1%

 

Average Price of For Sale and Sold (May. 2013 – Jul. 2014)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jul. 14

Jun. 14

% Change

Jul. 14

Jul. 13

% Change

May. 14 to Jul. 14

May. 13 to Jul. 13

% Change

Avg. Active Price

310

316

-1.9%

310

307

1%

314

313

0.3%

Avg. Sold Price

244

247

-1.2%

244

234

4.3%

244

233

4.7%

 

Months of Inventory Based on Closed Sales (May. 2013 – Jul. 2014)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jul. 14

Jun. 14

% Change

Jul. 14

Jul. 13

% Change

May. 14 to Jul. 14

May. 13 to Jul. 13

% Change

Months of Inventory (Closed Sales)

3.5

3.4

3%

3.5

2.5

39.7%

3.4

2.4

41.8%

 

 

 

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*All reports are published August 2014, based on data available at the end of July 2014. All reports presented are based on data supplied by the Intermountain MLS. Intermountain MLS does not guarantee or is not in anyway responsible for its accuracy. Data maintained by the Intermountain MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

 

Posted on August 12, 2014 at 2:11 pm
Cam Johnson | Category: Monthly Real Estate Market Reports

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