Boise Real Estate Market Report for February 2016

Great Start to 2016 Continues in the Boise Real Estate Market

 

The weather wasn’t the only thing that warmed up in Boise in February. The strong showing in the Boise real estate market in January pales in comparison to February, albeit there was one extra “leap day” this year. Closed sales in Ada County at 618 were up 11.4% over 2015 and 26.4% ahead of January 2016. Sales of non-distressed properties surged 17.5% to 604 and were 97.7% of the sales total.  Meaning that short sales and bank owned properties now make up less than 3% of all sales.  Remember 2010-11 anyone? Seems like ancient history when 50+% of the market was distressed. New construction also had very strong month with sales of 139, +25.2% vs. 2015 and +33.7 vs. January 2016.  Roughly 1 in 4 homes sold last month was new construction.

After reading the above it comes as no surprise that prices were also up in February.  The average price per square foot was $129, up 9.3% while the average sales price was $263K or +7.8%. While prices compared to a year ago were up in the 5-6% range in January, in February it was more like 8-9%. Still sustainable given the market, but a little less “comfortable” than in January.  I will start to be concerned if we go 2 or more months in a row with increases of 10% or more.  When we were showing 15-18% price increases a couple years ago there was much talk of another bubble forming. The difference is prices were recovering from the hit they took 2008-11.  Now that we are back at or above the peak prices of 2006 further increases  of more than 10% on a monthly basis may signal the market really is overheating, which given that demand remains high and inventories are low makes sense.

Speaking of inventory, it is low…really low, especially for this time of year. Inventory traditionally starts to ramp up as early as February and March in anticipation of the spring selling season. There were 1811 active listings in Ada County, only 4 more than there were in January. That is 12.7% below last February and represents only 2.9 months of inventory at the current rate of sales.  You may recall from my previous reports that most experts consider 6 months of inventory to be a stable healthy market.  3-6 months typically indicates a “Seller’s Market” while under 3 would for lack of a better word be a strong “Seller’s Market”. While the average days on market stands at 70, which seems like a perfectly reasonable number, this is -9.1% from 2015.  Bottom line is homes are selling faster and for higher prices than we have seen in almost 10 years.

SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR FEBRUARY 2016

*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

618

+11.4

100

1811

-12.7

100

$129

+9.3

$263K

+7.8

70

-9.1

2.9

Non Distress

604

+17.5

97.7

1744

-10.7

96.3

$130

+8.3

$265K

+6.4

70

-6.7

2.9

REO

5

-80.0

0.8

17

-57.5

0.9

$101

+7.4

$203K

+12.2

78

+50.0

3.4

Short Sale

7

-56.2

1.1

46

-40.3

2.5

$92

+1.1

$152

-19.1

139

-23.6

6.6

New Construction

139

+25.2

22.5

855

+9.3

47.2

$142

+8.4

$322K

+3.2

110

-8.3

6.2

 

Looking ahead interest rates look to remain low for at least the next 6 months and demand both organic and due to in-migration continues strong. Financing guidelines while still fairly tight show signs of cautiously loosening up a bit.  Also I expect more and more people who went through a short sale, foreclosure, or bankruptcy during the recession to try and reenter the housing market as the time limits preventing them from obtaining a mortgage expire. If you are looking to buy things may appear bleak due to the lack of inventory.  Good houses in good locations do come on the market so you need to be prepared to act quickly as they don’t last long and multiple offers in the first day or so of listing are happening frequently when a desirable property that is not overpriced comes up.

I welcome your comments and questions and thank you, as always, for keeping the referrals coming.

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 by: Cam Johnson- Windermere Access Realty

 

 

Number of Homes For Sale vs. Sold vs. Pended (Dec. 2014 – Feb. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Feb. 16

Jan. 16

% Change

Feb. 16

Feb. 15

% Change

Dec. 15 to Feb. 16

Dec. 14 to Feb. 15

% Change

3/1/2016 – 3/9/2016

2/1/2016 – 2/9/2016

% Change

For Sale

1811

1807

0.2%

1811

2074

-12.7%

5567

6245

-10.9%

1719

1689

1.8%

Sold

618

496

24.6%

618

555

11.4%

1976

1674

18%

189

175

8%

Pended

898

680

32.1%

898

753

19.3%

2102

1843

14.1%

347

238

45.8%

 

Average Price per SQFT (Sold) (Dec. 2014 – Feb. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Feb. 16

Jan. 16

% Change

Feb. 16

Feb. 15

% Change

Dec. 15 to Feb. 16

Dec. 14 to Feb. 15

% Change

3/1/2016 – 3/9/2016

2/1/2016 – 2/9/2016

% Change

Avg. Sq. Ft. Price (Sold)

129

125

3.2%

129

118

9.3%

126.69

118.39

7%

126

129

-2.3%

 

Avg CDOM & SP/Orig LP % (Dec. 2014 – Feb. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Feb. 16

Jan. 16

% Change

Feb. 16

Feb. 15

% Change

Dec. 15 to Feb. 16

Dec. 14 to Feb. 15

% Change

3/1/2016 – 3/9/2016

2/1/2016 – 2/9/2016

% Change

Avg CDOM

70

78

-10.3%

70

77

-9.1%

69

79

-12.7%

86

73

17.8%

Sold/Orig LP Diff. %

98

97

1%

98

97

1%

97

97

0%    

98

97

1%

 

Average Price of For Sale and Sold (Dec. 2014 – Feb. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Feb. 16

Jan. 16

% Change

Feb. 16

Feb. 15

% Change

Dec. 15 to Feb. 16

Dec. 14 to Feb. 15

% Change

3/1/2016 – 3/9/2016

2/1/2016 – 2/9/2016

% Change

Avg. Active Price

354

342

3.5%

354

319

11%

345

314

9.9%

357

347

2.9%

Avg. Sold Price

263

262

0.4%

263

244

7.8%

262

248

5.6%

259

263

-1.5%

 

Months of Inventory Based on Closed Sales (Dec. 2014 – Feb. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Feb. 16

Jan. 16

% Change

Feb. 16

Feb. 15

% Change

Dec. 15 to Feb. 16

Dec. 14 to Feb. 15

% Change

3/1/2016 – 3/9/2016

2/1/2016 – 2/9/2016

% Change

Months of Inventory (Closed Sales)

2.9

3.6

-19.2%

2.9

3.7

-21.4%

2.8

3.7

-24.1%

9.1

9.7

-6.2%

 

 

 

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*All reports are published March 2016, based on data available at the end of February 2016, 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 March 10, 2016 at 6:46 pm
Cam Johnson | Category: Monthly Real Estate Market Reports | Tagged , , , , , , , ,

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