Sales Rise and Prices Explode in January
After two straight months of year over year sales declines, in January closed sales in Ada County were up 8.2% to 644. While this is still well below the 851 homes sold in December, January is usually by far the slowest month of the year. Last year’s Snowmageddon may have had some impact on sales in the latter part of January 2017 but the main negative effects on sales were in February and early March. Regardless, January’s numbers are strong especially when you consider that the inventory of available homes was down 12.7% from a year ago. While the average days on market crept up a bit to 47 days this was still 14.5% lower than 2017 and the total months of inventory based on the current rate of sales was a very tight 2.0. New construction continues to provide much needed inventory. In January 63.5% of all homes available were newly constructed or under construction while there were 171 closed sales (+27.6%).
While prices have been rising steadily for years in response to the high demand and low inventory, in January prices exploded. The average price per square foot hit $153, a new record and a 15% increase from last January and a 4.1% increase in just one month from December 2017. The average sales price hit $326K, also a new record, $12,000 (+3.8% ) above December 2017 and a whopping 22.6% above January of last year. As with closed sales, the winter weather may have had some impact last year especially towards the end of the month but I think most of this year’s surge in prices is due to the fundamental market forces of very low inventory coupled with very high demand.
SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR JANUARY 2018
*Does not include manufactured homes **see detailed graphs below for more information.
|Type||# Sold||% +/-||% of Total Sold||# For Sale||% +/-||% of Total For Sale||$/SF||% +/-||Average Sold Price||% +/-||Days on Market||% +/-||Months Inventory|
As mentioned last month, the new tax law could have some impact on our real estate market as the allowable deductions have changed. Most of the changes will be largely unnoticed here though as compared to higher priced areas and because of how high demand is currently. Also in the news is the revelation that after years of reports that Millennials were not as likely to purchase a home as previous generations because they value experiences over things, now the analysts are saying the opposite: the nationwide housing boom is being driven by first time home buyers primarily Millennials.
A couple other tidbits: we reached somewhat of a milestone in January in that for the first time since at least the end of the previous upcycle in 2007, there were 0, read: ZERO short sales in Ada County in January. While 4 REO (bank owned) properties did close, “distressed” sales as a whole only represented six tenths of one percent of the market. Compare that to the roughly 50% figure when the market bottomed out in 2010-11. We’ve come a long way baby!
Secondly, for those of you who were fortunate enough to see Windermere Chief Economist, Matthew Gardner when he spoke in Boise last fall, or who have in interest in the statewide real estate market, you may want to take a look at his latest report on the Idaho real estate market for the 4th quarter of 2017. Click HERE to view the report.
Please don’t hesitate to contact me with your comments and questions and remember I am never too busy for your referrals. And whether you ski or not, don’t forget to Pray for Snow!
Windermere Real Estate/Boise Valley
1412 W Idaho St.
Boise, ID 83702