Boise (Ada County) Real Estate Market Report for March 2013

March was another interesting month for Boise Real Estate as prices continue to soar and inventory remains very, very low.  The average price per square foot rose 19.4% to $107 while the average sales price rose 28.3% to $222,000 versus 2012.  It is tempting to say this is the beginning of another bubble because prices rising that quickly are unsustainable.  However the rise in prices is still somewhat misleading as we continue to shift the product mix of what is selling away from lower priced distressed properties and towards new construction and “traditional” re-sales.  If you look just at non-distressed properties the price per square foot was up only 11.9%–still very positive but not quite as scary as 19.4%.  I think that 11.9% number is a much truer reflection of what the average home’s value has risen in the last year.  New construction average price per square foot was up 7.6% reflecting not only strong demand but also rising prices for materials.

 

Inventory, at 1892 units continues to be as low as it has been in many years and this is certainly helping to pressure prices upward even as we start to compare to some pretty strong numbers from 2012. Overall inventory was down 7.2% mainly due to the sharp drop in short sale inventory (-45.7%), while REO inventory actually shot up in March  but on a very small base (3.6% of total inventory). Looking at months of available inventory we are at 3.2 months overall, but only 3.0 months for non-distressed properties.  Remember, 6 months is considered a stable healthy market. Average days on market for non-distressed properties has also dropped significantly to 74 days (-21.3%), compared to 188 days for short sales.  Apparently that process is still taking as long or longer even as their numbers dwindle.

 

Market Stats for Ada County Single Family, Condo, and Townhomes:

 

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Average

Days on Market

% +/-

Months Inventory

All

591

+0.7

100

1892

-7.2

100

$107

+19.4

$222K

+28.3

86

-12.2

3.2

Non Distress

492

+36.7

83.2

1500

+6.0

79.3

$110

+11.9

$230K

+18.6

74

-21.3

3.0

REO

29

-74.3

4.9

68

+119.4

3.6

$96

+33.2

$221K

+72.7

58

+13.7

2.3

Short Sale

68

-40.4

11.5

320

-45.7

16.9

$86

+11.9

$160K

+4.6

188

+18.2

4.7

New Construction

139

+43.3

23.5

606

+2.9

32.0

$116

+7.6

$259K

+19.4

110

+3.0

4.4

 

Not surprisingly, as prices have increased over all the sweet spot of the market has moved up as well.  It had been hovering around $125K and it now seems to be more in the $175K range as the table below illustrates.  Also of note is the sharp drop in the number of sales under $150K and the corresponding sharp increase in the number of sales above $150K.  Even the “high end” of the market is showing vigorous growth—sales of homes priced above $500K in March were up 118.2%!

 

Price Range

# Sold

% Change from 2012

% of Total sales

< $100K

40

-64.3

6.8

$100,000-149,999

142

-23.7

24.0

$150,000-199,999

161

+30.9

27.2

$200,000-299,999

139

+25.2

23.5

$300,000-399,999

70

+105.9

11.8

$400,000-499,999

15

+50.0

2.5

$500,000 +

24

+118.2

4.1

 

While low inventory is hampering some buyers, it is still a great time to buy as interest rates remain solidly below 4%.  Buyers should be prepared for multiple offers, price escalations, and/or bidding wars on the most desirable properties but it may be worth jumping into the fray sooner than later as prices are definitely still rising and interest rates are forecast to be as much as a full point higher by year’s end.

 

Your questions, comments, and above all, referrals are always appreciated.  Bring on Spring!

 

Graphs below for those interested in more details

 

 

 

 

 

 

 

Facts and Trends

TM

Published April 2013*

Location:

  ADA COUNTY

Price Range:

  $0 – No Limit

SQFT Range:

  0 – No Limit

Property Types:

  Single Family, Single Family w/ Acr, Condo, Townhouse – All Properties – All Properties – All Properties

Bedrooms:

  0 – No Limit

Bathrooms:

  0 – No Limit

Year Built:

  0 – No Limit

Prepared for you by: Cam Johnson

 

Number of Homes For Sale vs. Sold vs. Pended (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

For Sale

1892

1811

4.5%

1892

2038

-7.2%

1822

2118

-14%

Sold

591

508

16.3%

591

587

0.7%

496

501

-1%

Pended

874

624

40.1%

874

743

17.6%

690

653

5.7%

 

Average Price per SQFT (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

Avg. Sq. Ft. Price

106.7

103

3.6%

106.7

89.4

19.4%

105.1

87.8

19.6%

 

Avg CDOM & SP/Orig LP % (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

Avg CDOM

86

88

-2.3%

86

98

-12.2%

84

104

-19.2%

Sold/Orig LP Diff. %

97

97

0%    

97

96

1%

97

95

2.1%

 

Average Price of For Sale and Sold (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

Avg. Active Price

293

288

1.7%

293

266

10.2%

289

253

14.2%

Avg. Sold Price

222

202

9.9%

222

173

28.3%

212

172

23.3%

 

Months of Inventory Based on Closed Sales (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

Months of Inventory (Closed Sales)

3

4

-10.2%

3

3

-7.8%

4

4

-13.1%

 

 

 

If your email program is not displaying the chart graphs properly, please click on the following link which will take you to a web page that contains the graphs: Show Chart

*All reports are published April 2013, based on data available at the end of March 2013. All reports presented are based on data supplied by the Intermountain MLS. Intermountain MLS does not guarantee or is not in anyway responsible for its accuracy. Data maintained by the Intermountain MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

 

Posted on April 24, 2013 at 10:27 pm
Windermere Real Estate Boise Valley | Category: Blog

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