Prices Reach Milestone/Record in Red Hot Market
Prices of Ada County real estate hit record highs in June spurred on by the continued lack of inventory, low interest rates, strong job growth and in-migration. Both the average sales price ($309,000) and the average price per square foot ($146) eclipsed the previous highs at the peak of the last boom in early 2007. June was also the first month that the average sales price topped $300,000. Conversely, inventories are at the lowest level for this time of year since prior to the last peak. At the end of the most recent quarter there were 1982 homes for sale in Ada County, compared to 6330 for the same quarter in 2007—a difference of about 70%. Based on the rate of sales we currently have only 1.6 months of inventory versus 9.1 months in 2007. Even more telling is that even with 70% less inventory to choose from, closed sales in the most recent quarter (3278)were up 58% over 2007’s numbers (2087). No wonder prices are going up! The cherry on top of how things have changed in the Boise real market in recent years is this: In June there was only 1 short sale that closed in Ada County. Five years ago, in 2012, the peak year for short sales in our market, 110 closed in June.
SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR JUNE 2017
*Does not include manufactured homes **see detailed graphs below for more information.
|Type||# Sold||% +/-||% of Total Sold||# For Sale||% +/-||% of Total For Sale||$/SF||% +/-||Average Sold Price||% +/-||Days on Market||% +/-||Months Inventory|
Narrowing our view a bit to compare the current market to a year ago the numbers are still pretty impressive. After being down for the last two months, year over year monthly sales rose 1.7% in June to 1261. Sales of new construction (excluding custom build jobs) were up 25.4% and represented 23.9% of all homes sold in June. Prices continued to surge, which as I discussed last month, is starting to become a concern. The average sales price at $309,000 was up 9.2% from 2016 while the average price per square foot was up $9.8% to $146. Furthermore the average days on market was 34, down 19.0% from a year ago and about half as many day as is considered “normal”. And inventory, at 1982 homes for sale was off 11.5%. Within Ada County there is quite a bit of difference in how the market is doing from area to area. For example while sales in Meridian in general are up 16-24% in area 1030 (NW Meridian) sales were flat. And in other areas such as the North End (-8.8) and the Bench (-19.6) sales are down, presumably due to lack of inventory, while prices are up 11.4% and 9.0% respectively.
Ada County Percent Change in Sales and Prices by MLS Area (June 2017 vs. June 2016)
|MLS Area||Number Sold||Average Sale Price|
|100- North Boise||-8.8||+11.4|
|200- NE Boise||0.0||+7.7|
|650-W. Boise/Garden City||+6.2||+0.4|
Please feel free to contact me with any questions and comments on this report, and stay cool!
Windermere Real Estate/Boise Valley
1412 W Idaho St.
Boise, ID 83702