Volume Up Slightly While Prices Surge By Double Digits
Overall the number of closed sales was up 1.3% in November in the Boise real estate market with new construction leading the way. Of the 935 closed sales 304 (32.5%) were new construction. Sales of new homes rose 19.2% for the month while sales of previously owned homes dropped by 5.5%. This continues to be a function of lack of available inventory not lack of demand. While inventories were starting to creep up slightly in the last few months, in November the number of homes for sale (1642) was down 11.7% from a year ago and also down about 12% from October. Fall and winter tend to be much slower than the summer months but the drop in numbers year over year indicates we definitely are not out of the woods yet as far as low inventories go. The average days on market of 42, while 20% higher than last November still is very low for this time of year and we are still in the “Strong Seller’s Market” range as far as inventory goes with only 1.8 months available based on the current rate of sales.
Prices have been rising since 2011 but in recent months the rate of increase had dropped into the mid to high single digits. Not so in November when the average price per square foot rose 11.4% to $186 and the average sales price rose 15.7% to $404,000. Both of those are, not surprisingly, new record highs. The double whammy of low inventory and rapidly rising prices continues to put the pinch on potential buyers more and more of whom are either being priced out or are frustrated to the point of giving up and seeking alternative housing. The means renting for many and moving in with family for some. Were it not for the fact that interest rates continue to hover under 4% this “crisis” would be even more acute. That time may come sooner than we think, although Windermere Chief Economist Matthew Gardner believes only modest increases in interest rates are on the horizon. He recently published his Economic and Real Estate Outlook for 2020 in the form of a short video. It is worth a listen and is packed with good information, plus his accent is so cute! Matthew is coming to Boise on January 30 at 10:00 am for a presentation at JUMP on the Idaho economy and real estate market. In the past these have been very informative and well attended. If you are interested in going please let me know. Admission is free but seating is limited and a ticket is required.
SUMMARY BOISE (ADA COUNTY) MARKET STATS FOR NOVEMBER 2019
*Does not include manufactured homes **see detailed graphs below for more information.
|Type||# Sold||% +/-||% of Total Sold||# For Sale||% +/-||% of Total For Sale||$/SF||% +/-||Average Sold Price||% +/-||Days on Market||% +/-||Months Inventory|
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Windermere Real Estate/Boise Valley
1412 W Idaho St.
Boise, ID 83702