Another Strong Month for Boise Real Estate With Record High Prices
October was more of the same for the Boise Real Estate market. The defining trends of this year remained in place last month: Sales and prices are up and inventory is tight. There were 926 closed residential sales in Ada County in October which is up 9.7% from a year ago. Inventory meanwhile continued to drop and it remains a strong seller’s market. The 2166 homes listed for sale was 12.6% below last October while the average days on market at 49 was unchanged. At the current rate of sales we have 2.3 months of inventory. This is the 9th straight month inventory has been below 3 months which is widely considered the threshold of a strong seller’s market. Pending sales (974) were up 17.6% indicating that the market should end the year on a strong note as well.
Prices rose as well to no one’s surprise. The average price per square foot rose to $138, 8.7% above a year ago and the highest in over 9 years. The average sales price meanwhile jumped to $282,000 (+6.0%) which I believe is an all time record for Ada County. We have definitely returned to levels not seen since the last peak in 2006. Fortunately, the market doesn’t seem to be exhibiting the classic signs of a bubble, probably due to tighter lending standards and more caution on the part of home owners and home buyers. Real estate is cyclical though so we should expect there to be some level of correction at some point. Windermere economist Matthew Gardner expects things to slow down in 2018 and furthermore does not predict any real market shift due to the election. There is some speculation though that a Trump administration reversal of some of the market calming safeguards put in place during the Obama years could allow things to overheat. I believe that will not happen but it remains to be seen.
SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR SEPTEMBER 2016
*Does not include manufactured homes **see detailed graphs below for more information.
|Type||# Sold||% +/-||% of Total Sold||# For Sale||% +/-||% of Total For Sale||$/SF||% +/-||Average Sold Price||% +/-||Days on Market||% +/-||Months Inventory|
Thank you as always for your comments and questions. I have heard from several of you that you forward my report to friends and family each month. If they so desire I would be happy to add them to my mailing list to save you a step. I hope you and your loved ones have a fabulous Thanksgiving!
Windermere Real Estate/Boise Valley
1412 W Idaho St.
Boise, ID 83702