Boise Real Estate Volume and Prices Both Sizzle in January
You probably have already seen the headlines in the local media about home prices reaching a new record high in January. While it makes for good headlines and is no doubt true, is it really news? Not if you have been following the market either with or without the help of this report. Our market bottomed out from the Great Recession approximately 9 years ago and since the 2nd quarter of 2011 has seen steadily climbing prices and strong volume. While I don’t recall the exact month where we not only eclipsed the high price points from the previous boom but also set a new record, suffice it to say it was years ago—2017 or 2018. Since then the market has continued to grow and prices have continued to go up steadily, meaning that with very few exceptions we reach a new record high for prices every month. Noteworthy but hardly breaking news. The real headlines will come when we see a month when prices actually drop. Well, if January is any indication, we may be waiting awhile for that to happen.
The average sold price for Boise real estate in January was $405,000 a 12.2% increase from 2019 and a new record, don’t you know! Meanwhile the average price per square foot rose 7.5% to $186 (actually not a record—it was $191 in December). And volume, which in most of 2019 seem to be constrained by a dearth of available existing homes for sale, surged 25.4% ahead of last January with 780 homes sold. New construction led the charge with 308 homes sold (+41.3%) and represented 39.5% of all homes sold and 66.7% of all homes for sale. Inventory continues to be extremely low at 1.6 months although the average days on market (58) is actually 16% higher than last January. The trends in Canyon County are fairly similar.
SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR JANUARY 2020
*Does not include manufactured homes **see detailed graphs below for more information.
|Type||# Sold||% +/-||% of Total Sold||# For Sale||% +/-||% of Total For Sale||$/SF||% +/-||Average Sold Price||% +/-||Days on Market||% +/-||Months Inventory|
On January 30 Windermere was honored to host our Chief Economist, Matthew Gardner, who in what has become an annual event, gave an excellent presentation on the Economic and Housing Outlook for 2020 both for the nation and the local market. While he had lots of positive things to say about our local economy and housing market he also cautioned that affordability is becoming a real problem. Those of you who follow this report know that I have expressed my concerns about affordability for well over a year and Matthew’s data serves to emphasize this issue. His slides are very informative and I am happy to share them in PDF form with anyone who is interested. The file is rather large so I am not including it here since many email servers limit the size allowed, but if you would like to see his presentation slides please contact me and I will arrange to get them to you. Another look at affordability from the 30,000 foot level and not just related to housing can be found in this recent article in the Atlantic. It argues that in what is hailed by some as the best US Economy in decades American families continue to be bled dry and it is only the corporations and the super wealthy that are truly benefitting. So much for trickle down economics!
Please feel free to contact me with your questions and comments.
Windermere Real Estate/Boise Valley
1412 W Idaho St.
Boise, ID 83702