Boise Real Estate Market Report for August 2015

Home Sales, Prices Continue to Coast Along in August

 

August was another very solid for the Boise real estate market. Sales and prices were both up solidly and while low inventory remains a concern it does not seem to be causing too much distress for buyers or pushing prices to unrealistic levels.  On the sales side in August it does feel like the market took its foot off the gas slightly compared to the last several months.  While the 887 closed sales was a solid 9.9% increase from a year ago, we have been experiencing year over year sales increases more in the +20% range for several months. It’s hard to pinpoint the cause. It could be the  beginning of the normal seasonal slowdown, or we may finally be starting reach the capacity of what a market this size can support volume-wise, or maybe it is the pre-cursor of a broader market slow down. Most would agree that if interest rates do go up significantly there will be a negative effect on sales but rates really haven’t yet gone above 4% on a consistent basis and the much threatened fed rate increase this fall seems in jeopardy due to the lack of confidence in the strength of the economy.

 

Prices, meanwhile, continue to increase but at very manageable levels.  The average sales price ($259K) was up 4.4% vs 2014 while the average price per square foot ($124) rose 3.6%. These percentages are only slightly higher than the current rate of inflation and therefore for the time being allay any real concerns that the market is overheating.  These are certainly sustainable increases given the overall strength of the local economy. As discussed above, a significant rate increase could impact prices as well as volume by reducing buyer’s buying power as well as confidence. This could especially impact new construction which is typically at a higher price point.  Already this year we have seen new construction drop from around 20% of the total closed sales to just 13.5% in August.

 

SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR AUGUST 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

887

+9.9

100

2610

-16.3

100

$124

+3.6

$259K

+4.4

47

-25.4

2.9

Non Distress

860

+13.2

97.0

2509

-14.4

96.1

$125

+3.4

$261K

+3.6

46

-23.3

2.9

REO

19

-29.6

2.1

23

-59.6

0.9

$94

-3.1

$169K

+8.3

52

-14.8

1.2

Short Sale

8

-55.6

0.9

73

-38.7

2.8

$102

-2.4

$242K

+2.1

139

-24.9

9.1

New Construction

120

-9.1

13.5

816

-4.3

31.3

$141

+3.5

$348K

+12.3

85

-8.6

6.8

 

As we roll into fall it’s hard to know exactly what to expect.  If the forces that typically affect the market remain in relative status quo then I think we can expect the healthy market to continue in Boise.  If there is a dramatic shift in interest rates, consumer confidence, an/or the local job market we can expect the market to react accordingly.

 

Thank you all for your comments, questions and referrals and for making 2015 another successful year for my business.

 

 

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

 

 

 

 

 

 

Prepared for you by: Cam Johnson-Windermere Access Realty

 

Number of Homes For Sale vs. Sold vs. Pended (Jun. 2014 – Aug. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 15

Jul. 15

% Change

Aug. 15

Aug. 14

% Change

Jun. 15 to Aug. 15

Jun. 14 to Aug. 14

% Change

9/1/2015 – 9/10/2015

8/1/2015 – 8/10/2015

% Change

For Sale

2610

2638

-1.1%

2610

3117

-16.3%

2628

3036

-13.4%

2423

2546

-4.8%

Sold

887

1084

-18.2%

887

807

9.9%

1027

860

19.4%

208

199

4.5%

Pended

979

977

0.2%

979

761

28.6%

981

809

21.3%

301

288

4.5%

August 2015 is a Seller's market**

Home For Sale in August 2015 is 2610 units. It is down 1.1% compared to the last month and down 16.3% compared to the last year.
Home Closed in August 2015 is 887 units. It is down 18.2% compared to the last month and up 9.9% compared to the last year.
Home Placed under Contract in August 2015 is 979 units. It is up 0.2% compared to the last month and up 28.6% 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 (Jun. 2014 – Aug. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 15

Jul. 15

% Change

Aug. 15

Aug. 14

% Change

Jun. 15 to Aug. 15

Jun. 14 to Aug. 14

% Change

9/1/2015 – 9/10/2015

8/1/2015 – 8/10/2015

% Change

Avg. Sq. Ft. Price

124.3

127.3

-2.4%

124.3

120

3.6%

126.3

120.4

4.9%

126

125

0.8%

August 2015 Average Sold Price per Square Footage is Neutral**

Average Sold Price per Square Footage in August 2015 is $124. It is down 2.4% compared to the last month and up 3.6% compared to the last year.

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

 

Avg CDOM & SP/Orig LP % (Jun. 2014 – Aug. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 15

Jul. 15

% Change

Aug. 15

Aug. 14

% Change

Jun. 15 to Aug. 15

Jun. 14 to Aug. 14

% Change

9/1/2015 – 9/10/2015

8/1/2015 – 8/10/2015

% Change

Avg CDOM

47

48

-2.1%

47

63

-25.4%

47

55

-14.5%

47

49

-4.1%

Sold/Orig LP Diff. %

97

97

0%    

97

97

0%    

97

97

0%    

95

98

-3.1%

August 2015 Average Continuous Days on Market trend is Falling**

Continuous Days on Market in August 2015 is 47. It is down 2.1% compared to the last month and down 25.4% compared to the last year.

August 2015 Sold/Original List Price Ratio is Falling**

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

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

 

Average Price of For Sale and Sold (Jun. 2014 – Aug. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 15

Jul. 15

% Change

Aug. 15

Aug. 14

% Change

Jun. 15 to Aug. 15

Jun. 14 to Aug. 14

% Change

9/1/2015 – 9/10/2015

8/1/2015 – 8/10/2015

% Change

Avg. Active Price

334

335

-0.3%

334

308

8.4%

334

311

7.4%

338

336

0.6%

Avg. Sold Price

259

267

-3%

259

248

4.4%

264

246

7.3%

255

253

0.8%

August 2015 Average For Sale Price is Neutral**

Average For Sale Price (in thousand) in August 2015 is $334. It is down 0.3% compared to the last month and up 8.4% compared to the last year.

August 2015 Average Sold Price is Neutral**

Average Sold Price (in thousand) in August 2015 is $259. It is down 3% compared to the last month and up 4.4% compared to the last year.

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

 

Months of Inventory Based on Closed Sales (Jun. 2014 – Aug. 2015)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 15

Jul. 15

% Change

Aug. 15

Aug. 14

% Change

Jun. 15 to Aug. 15

Jun. 14 to Aug. 14

% Change

9/1/2015 – 9/10/2015

8/1/2015 – 8/10/2015

% Change

Months of Inventory (Closed Sales)

2.9

2.4

20.5%

2.9

3.9

-25.9%

2.6

3.5

-25.5%

11.6

12.8

-9.4%

August 2015 is a Seller's market**

Months of Inventory based on Closed Sales in August 2015 is 2.9. It is up 20.5% compared to the last month and down 25.9% 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.

 

 

 

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*All reports are published September 2015, based on data available at the end of August 2015, except for the today stats. 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 September 15, 2015 at 8:24 am
Cam Johnson | Category: Monthly Real Estate Market Reports | Tagged , , , , , , , ,

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