Boise (Ada County) Real Estate Market Report for July 2012

The Boise Real Estate market in July for the most part reflected the trends that began earlier this year so my comments this month will be brief.  The market is characterized by a sharp drop in the number of distressed properties, low inventory overall and a surge in new construction.  The changing product mix from distressed to “conventional” sales and new construction has caused a sharp increase in average sales prices but is not indicative of across the board property value appreciation.  Fierce competition for properties in the “sweet spot” of the market  ($100-150K) is driving up prices in that segment.  Multiple offers and bidding wars are the norm for those properties as investors and regular homebuyers duke it out for the very few properties that are available in that price range.  The table below and the graphs at the bottom of this report illustrate the trends pretty well.

A few highlights:

  1. While the average sales price for all properties surged 13% versus 2011 prices for REO’s (bank owned properties)  were only up +0.8% and were actually down 3.9% for short sales.  This is surprising given the low number of the properties available and the fierce competition for them I alluded to above.  Reflective of the demand, asking prices for REO’s have shot up over the last few months and are now 47.1% above the asking prices a year ago versus a rise of 19.7% for all properties.  3 of the last 4 months REO’s have sold at 100% or more of their asking price so it makes sense that asking prices should step up.
  2. REO’s now only represent 1.6% of the available inventory and the number sold dropped 72.7%.  All distressed sales now represent only 20.7% of the closed transactions down from 50% or higher in recent years.  Meanwhile new construction now represents 20.6% of all closed sales after being a non-factor for at least 3 years and the number of closed sales of new construction increased 69.9% from a year ago.
  3. Because of this change in product mix from distressed to non-distressed and new construction the steep rises in the average price per square foot and average sales price are very misleading and do not represent true value appreciation for any given piece of property. The average sold price per square foot for new construction rose 5.6% vs 2011 compared to 15.3% for all properties.  The overall value of properties absolutely did not increase 15.3% though. However, in trying to determine how much (or little) values are appreciating I believe the new construction figure is a good starting point because, especially with the large builders who are selling essentially the same product year to year you can come closer to making an “apples to apples” comparison to last year’s values.  I feel the market overall, especially higher end homes, is probably dragging a bit behind that 5.6% increase that new construction has seen and estimate appreciation for all residential properties in 2012 to realistically be more in the 3-5% range, depending on the location and price point.


July 2012 Market Snapshot:




# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale


% +/-

Average Sold Price

% +/-

Days on Market

% +/-

Months Inventory















Non Distress




























Short Sale














New Construction















Comparisons above do not include mobile or manufactured homes and percentages are versus 2011.


I hope you are all having a great summer despite the heat and, recently, the pervasive smoke.  As always your comments, questions, and referrals are greatly appreciated.  Please feel free to share this info with anyone you think is interested.


Cam Johnson


Windermere Access Realty

1412 W Idaho St.

Suite 120

Boise, ID 83702

208-258-2222 Office

208-283-3664 Cell

208-258-2230 Fax

Check out my listings here:

Posted on August 15, 2012 at 11:50 am
Cam Johnson | Category: Uncategorized

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