Boise Real Estate Market Report For February 2015

Sales Up + Prices Up + Lower Inventory= Strong Boise Real Estate Market in February!

February was another strong month for the Boise Real Estate Market. Not only was the number of closed sales (547) up 18.7% but the average sale price rose a solid 9.4% versus a year ago and stands at $245,000.  And to top it all off inventory was down 6.3% and the number of pending sales surged 44.5% to 799.  This bodes well for closings in March and April. The raw inventory number of 2074 was actually 1.6% higher than in January but at the current rate of sale the months of available inventory dropped from 4.5 to 3.8, a very healthy level for maintaining steady growth. The average days on market (77) also dropped almost 5% from last year.

Distressed sales continue to wither away.  Both numbers are about 25% below a year ago and inventory of bank owned properties (40) was off 42.7% while short sale inventory (77) dropped 51.3%.   Short sales at 16 represented only 2.9% of all closings while bank owned properties (25) were 4.6% of all closings for a combined total of 7.5%.  While ideally that number would be zero we’ve come a long way from the 50%+ of the market that distressed sales represented as recently as early 2012. Prices on distressed properties continue to lag behind conventional properties by 25-30% but I believe this is more a function of the type and condition of the average distressed property than of there being screaming deals given by banks. If anything the overall health of the market has made banks less flexible on pricing of distressed properties.

SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR FEBRUARY 2015

*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

547

+18.7

100

2074

-6.3

100

$118

+4.2

$245K

+9.4

77

-4.9

3.8

Non Distress

506

+24.9

92.5

1952

-1.5

94.1

$120

+3.1

$250K

+8.2

75

-1.3

3.9

REO

25

-24.2

4.6

40

-42.0

1.9

$94

+4.3

$180K

+1.7

52

-37.3

1.6

Short Sale

16

-27.3

2.9

77

-51.3

2.9

$91

+2.7

$188K

+20.5

182

+7.7

4.8

New Construction

110

+10.0

20.1

782

-3.6

37.7

$131

-1.1

$313K

+2.3

119

+3.5

7.1

 

New construction, which has been somewhat shaky of late turned in some encouraging numbers in February although I believe the inventory of new homes is still somewhat high.  Sales were up 10% at 110 for the month while the average sales price was up only 2.3% to $313,000.  Inventory did drop 3.6% but the 782 homes for sale represent 37.7% of all available homes while new home sales are only 20.1% of all home sales.  This still represents a disconnect to me, although part of it may be due to how new homes are listed and marketed.  In many cases the home may be listed at the start of construction, or in some cases before, and this could skew the numbers.

The slumbering volcano of higher interest rates has been doing some rumbling lately and may finally be poised for an “eruption”. How large it will be and how long it will last remain to be seen.  The Fed has hinted that they are looking to make some sort of a move in June, but we have heard similar stories before.  It seems just when all the indices are aligned that would push the Fed to raise rates a report will come out that casts doubt on the strength of the economy so they hold off.  For now though we get to bask in a market with very low interest rates, rising sales, moderate inventory, and prices that are rising at a steady sustainable rate in my opinion.  We will probably look back upon this period with envy before long. With Spring, traditionally when the market revs up for summer, basically here I think for at least the next few months we can expect more good news in the Boise Real Estate Market.  If rates take a big turn in June it could be an interesting summer.

Please feel free to contact me with your questions and comments, and, of course, your referrals are always much appreciated.

 

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

 

 

 

Prepared for you by: Cam Johnson-Windermere Access Realty

 

Number of Homes For Sale vs. Sold vs. Pended (Dec. 2013 – Feb. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 15

Jan. 15

% Change

Feb. 15

Feb. 14

% Change

Dec. 14 to Feb. 15

Dec. 13 to Feb. 14

% Change

For Sale

2074

2041

1.6%

2074

2214

-6.3%

2082

2195

-5.1%

Sold

547

460

18.9%

547

461

18.7%

555

511

8.6%

Pended

799

624

28%

799

553

44.5%

632

521

21.3%

February 2015 is a Neutral market**

Home For Sale in February 2015 is 2074 units. It is up 1.6% compared to the last month and down 6.3% compared to the last year.
Home Closed in February 2015 is 547 units. It is up 18.9% compared to the last month and up 18.7% compared to the last year.
Home Placed under Contract in February 2015 is 799 units. It is up 28% compared to the last month and up 44.5% compared to the last year.

**Buyer's market: more than 6 months of inventory based on closed sales. Seller's market: less than 3 months of inventory based on closed sales. Neutral market: 3 – 6 months of inventory based on closed sales.

 

Average Price per SQFT (Dec. 2013 – Feb. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 15

Jan. 15

% Change

Feb. 15

Feb. 14

% Change

Dec. 14 to Feb. 15

Dec. 13 to Feb. 14

% Change

Avg. Sq. Ft. Price

117.8

118.4

-0.5%

117.8

113

4.2%

118.6

113.9

4.1%

February 2015 Average Sold Price per Square Footage is Depreciating**

Average Sold Price per Square Footage in February 2015 is $118. It is down 0.5% compared to the last month and up 4.2% compared to the last year.

**Based on 6 month trend – Appreciating/Depreciating/Neutral.

 

Avg CDOM & SP/Orig LP % (Dec. 2013 – Feb. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 15

Jan. 15

% Change

Feb. 15

Feb. 14

% Change

Dec. 14 to Feb. 15

Dec. 13 to Feb. 14

% Change

Avg CDOM

77

83

-7.2%

77

81

-4.9%

79

76

3.9%

Sold/Orig LP Diff. %

97

97

0%    

97

96

1%

97

96

1%

February 2015 Average Continuous Days on Market trend Remains Steady**

Continuous Days on Market in February 2015 is 77. It is down 7.2% compared to the last month and down 4.9% compared to the last year.

February 2015 Sold/Original List Price Ratio is Rising**

Sold/Original List Price % in February 2015 is 97%. It is the same as compared to the last month and up 1% compared to the last year.

**Based on 6 month trend – Rising/Falling/Remains Steady.

 

Average Price of For Sale and Sold (Dec. 2013 – Feb. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 15

Jan. 15

% Change

Feb. 15

Feb. 14

% Change

Dec. 14 to Feb. 15

Dec. 13 to Feb. 14

% Change

Avg. Active Price

319

310

2.9%

319

299

6.7%

314

293

7.2%

Avg. Sold Price

245

246

-0.4%

245

224

9.4%

248

230

7.8%

February 2015 Average For Sale Price is Appreciating**

Average For Sale Price (in thousand) in February 2015 is $319. It is up 2.9% compared to the last month and up 6.7% compared to the last year.

February 2015 Average Sold Price is Neutral**

Average Sold Price (in thousand) in February 2015 is $245. It is down 0.4% compared to the last month and up 9.4% compared to the last year.

**Based on 6 month trend – Appreciating/Depreciating/Neutral.

 

 

 

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*All reports are published March 2015, based on data available at the end of February 2015. 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 March 12, 2015 at 3:48 pm
Cam Johnson | Category: Monthly Real Estate Market Reports | Tagged , , , , , , ,

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