Boise Real Estate Market Report for August 2016

AUGUST WAS HOT FOR BOTH SALES AND PRICES!

After a slight hiccup in July the Boise real estate market sizzled in August with strong increases in both the number of closed sales and prices.  After being up only 1.4% year over year in July, the 1066 closed sales in August were 18.2% ahead of August 2015. Pending sales were also up strongly indicating that September and possibly October should also notch strong sales. All in spite of continued very low inventory.  There were 2332 homes listed in August, down 10.7% from a year ago and at the current rate of sales there is only 2.2 months of available inventory, an indication of a strong seller’s market.  The average days on market was 39, which is 17% lower than a year ago and while it was up slightly from July’s 37 days, it is still a strong indication of a seller’s market.

As one would expect prices are continuing to rise as demand remains strong and inventory is low.  The average price per square foot at $135, while unchanged from July was up 8.9% vs last year. Meanwhile the average sales price jumped $5,000 from July to $283,000.  This was a 9.3% increase over 2015.  The only segment of the market that didn’t see prices increase in August was new construction where the average sales price of $339,000 was 2.6% below 2015. Average new home prices are still over $50,000 higher than re-sales and there may be some adjustment by builders to alter their product mix to a slightly lower price point to keep buyers interested.  Volume of new construction surged in August.  220 new homes that were listed in Ada County sold which is an 81.8% increase over August 2015.  New home sales were particularly low for some reason last August so the 81.8% increase is somewhat misleading.  I would estimate a more realistic figure would be 20-25%, which is still impressive.  And inventory of listed new homes is also relatively low at 3.5 months.  Suffice it to say that between the listed new homes and all the build jobs that never make in the MLS, there is a lot of building going on in the Treasure Valley.

SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR AUGUST 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

1066

+18.2

100

2332

-10.7

100

$135

+8.9

$283K

+9.3

39

-17.0

2.2

Non Distress

1053

+20.5

98.8

2287

-8.8

98.1

$136

+8.8

$284K

+8.8

39

-15.2

2.2

REO

7

-65.0

0.7

20

-13.0

0.9

$101

+8.6

$190K

+13.8

50

-2.0

2.9

Short Sale

4

-50.0

0.4

24

-67.1

1.0

$109

+6.9

$372K

+53.1

173

+24.5

6.0

New Construction

220

+81.8

20.6

777

-4.8

33.3

$149

+5.7

$339K

-2.6

67

-21.2

3.5

Nationally many are predicting a gradual slowdown of the market, while some are predicting another crash.  The reports are somewhat conflicting.  For example in late August the Wall Street Journal reported sales of previously owned homes fell 1.6% from 2015.  They went on to say that many of the hot markets around the country are cooling as prices are keeping first time buyers out of the market which prevents trade-up buyers from trading up.  At some point Boise may face the same issues especially if interest rates go up.  However just a few days later the Journal reported on how new construction was booming in many parts of the country (Boise included).  There has also been a lot of media attention to the perceived trend that Millennials are not pursuing home ownership as vigorously as previous generations.  This could be due to many factors including the cost, lingering student debt, prioritizing experiences over things, and other generational values that make owning a home less attractive. Hard to make sense of it all but I feel as if we are due for somewhat of a cool down in our market in the next 6-9 months.  While it is doubtful that rates will rise in September I think there is a better chance the Fed will act in December.  And as crazy as this election is turning out to be I think predictions on how it will affect the Boise real estate market are overstated and in the long run I don’t believe the outcome, whichever way it goes, will have a dramatic effect here.

Thank you all for your comments, questions, and above all, referrals.

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

 

Number of Homes For Sale vs. Sold vs. Pended (Jun. 2015 – Aug. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 16

Jul. 16

% Change

Aug. 16

Aug. 15

% Change

Jun. 16 to Aug. 16

Jun. 15 to Aug. 15

% Change

9/1/2016 – 9/7/2016

8/1/2016 – 8/7/2016

% Change

For Sale

2332

2354

-0.9%

2332

2610

-10.7%

6926

7884

-12.2%

2169

2257

-3.9%

Sold

1066

1128

-5.5%

1066

902

18.2%

3434

3097

10.9%

151

177

-14.7%

Pended

1105

1045

5.7%

1105

939

17.7%

3282

2895

13.4%

225

266

-15.4%

 

Average Price per SQFT (Sold) (Jun. 2015 – Aug. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 16

Jul. 16

% Change

Aug. 16

Aug. 15

% Change

Jun. 16 to Aug. 16

Jun. 15 to Aug. 15

% Change

9/1/2016 – 9/7/2016

8/1/2016 – 8/7/2016

% Change

Avg. Sq. Ft. Price (Sold)

135

135

0%    

135

124

8.9%

134.28

126.13

6.5%

136

138

-1.4%

 

Avg CDOM & SP/Orig LP % (Jun. 2015 – Aug. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 16

Jul. 16

% Change

Aug. 16

Aug. 15

% Change

Jun. 16 to Aug. 16

Jun. 15 to Aug. 15

% Change

9/1/2016 – 9/7/2016

8/1/2016 – 8/7/2016

% Change

Avg CDOM

39

37

5.4%

39

47

-17%

39

47

-17%

46

40

15%

Sold/Orig LP Diff. %

98

99

-1%

98

97

1%

99

97

2.1%

98

98

0%    

 

Average Price of For Sale and Sold (Jun. 2015 – Aug. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 16

Jul. 16

% Change

Aug. 16

Aug. 15

% Change

Jun. 16 to Aug. 16

Jun. 15 to Aug. 15

% Change

9/1/2016 – 9/7/2016

8/1/2016 – 8/7/2016

% Change

Avg. Active Price

353

352

0.3%

353

334

5.7%

356

334

6.6%

355

355

0%    

Avg. Sold Price

283

278

1.8%

283

259

9.3%

281

264

6.4%

288

287

0.3%

 

Months of Inventory Based on Closed Sales (Jun. 2015 – Aug. 2016)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

  

TODAY STATS

 

Aug. 16

Jul. 16

% Change

Aug. 16

Aug. 15

% Change

Jun. 16 to Aug. 16

Jun. 15 to Aug. 15

% Change

9/1/2016 – 9/7/2016

8/1/2016 – 8/7/2016

% Change

Months of Inventory (Closed Sales)

2.2

2.1

4.8%

2.2

2.9

-24.2%

2

2.5

-19.6%

14.4

12.8

12.5%

 

 

 

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*All reports are published September 2016, based on data available at the end of August 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 September 9, 2016 at 2:39 pm
Cam Johnson | Category: Monthly Real Estate Market Reports | Tagged , , , , , , , ,

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