Sales Drop While Prices Hit Another New Record High
The Boise Real Estate Market continues it’s unusual combination of flat to dropping sales volume with relentlessly rising prices. While the number of homes sold in Ada County in June (1159) was off 10% from a year ago and the average days on market is creeping up, inventory overall remains very tight and prices hit yet another new record high. June’s drop in sales is especially significant in that June is typically one of the busiest if no the busiest month of the year. This year not only were sales below last year but they dropped by 100 (7.9%) from May 2019. The average days on market meanwhile was 32 in June, indicative of a continued very strong seller’s market but up 14.3% from a year ago. At the current rates of sales there is 1.6 months of inventory. This is also very low (6 being typical of a stable market) but, remarkably, is 33% higher than last June.
Prices keep going up regardless of the drop in sales. The average price per square foot hit $181, a new record, and a 9% increase from 2018, while the average sold price also stayed in record territory jumping 9.4% to $395K. Since January 1 the average price of a home in Ada County has risen by more than $30,000 (9.1%). So while sales are down it is not apparently due to lack of demand but relative lack of supply particularly at the lower price points. As I pointed out last month most of the drop in sales is coming in the under $300K sector of the market. Sales of homes from $0-299K were off 32.3% in June while sales of homes from $500-699K were up 43.6%. Sales in the segment in the middle, homes from $300-499K were basically flat—up +0.4%. Another statistic of note in June was that sales of new construction also dropped 11.8%. This is in marked contrast to recent months where I have reported that new construction seemed to be keeping the broader market afloat. This was the first significant drop off in quite some time so it remains to be seen if it was a quirk or the beginning of a new trend that could have market wide implications.
SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR JUNE 2019
*Does not include manufactured homes **see detailed graphs below for more information.
|Type||# Sold||% +/-||% of Total Sold||# For Sale||% +/-||% of Total For Sale||$/SF||% +/-||Average Sold Price||% +/-||Days on Market||% +/-||Months Inventory|
Barring any major unexpected macro-economic or geo-political event, expect more of the same at least through the summer. Boise strong job market, attractive quality of life, and low interest rates should keep the fire burning for the time being. Please feel free to contact me with your questions and comments and stay cool out there.
Windermere Real Estate/Boise Valley
1412 W Idaho St.
Boise, ID 83702