Fast-Moving Housing Market Continues to be Driven by Demand

Despite rising home prices, today’s housing market doesn’t have much else in common with the market we saw prior to the recession.

The Boise Region’s housing market is being driven by real home buyer demand, not speculation, which was common a decade ago. And as we’ve mentioned before, the increase in demand and lack of inventory has pushed up home prices.

The Boise Region’s housing market is being driven by home buyer demand, not speculation. Click To Tweet

That demand for housing can be seen in the data (real or speculative) by looking at the Days on Market.

Days on Market metric (or DOM) counts the average number of days between when a property was listed and when an offer was accepted.

For example, in Ada County, home sales that closed in September spent an average of 32 days on the market before going under contract, 23.8% faster than in September 2016.

DOM doesn’t factor in the time between accepting an offer and closing (which can vary based on the time it takes to complete home inspections, repairs, financing, etc.), so it is a good indicator of the demand for housing, and how quickly sellers find buyers.

DOM is seasonal, meaning homes generally go under contract faster in the spring and summer and slower in the fall and winter. To see the overall trend, we used a 12-month rolling average to remove seasonality. Based on those figures, DOM for Ada County has been trending down since 2009, and since 2014, DOM has been tracking closely with falling inventory.

September 2017 DOM Trends Ada County - web

DOM Chart

The very low DOM of 32 days on average, between February 2006 and January 2007, shows just how quickly buyers were snatching up homes, despite having plenty of inventory to choose from. In the past year or so we’ve experienced quite the opposite — low DOM and very low inventory.

September 2017 DOM Trends Canyon County - webPrior to the recession, Canyon County saw a similar trend with shorter average DOM despite plenty of inventory to meet demand. Since late 2013, DOM has been tracking closely with inventory, indicating increasing demand as inventory drops.

While that historical comparison is another helpful distinction between today’s market and the pre-recession market, it’s not much consolation for today’s buyers who are often required to make quick decisions because of limited inventory. Unless there is a sudden influx of inventory or a quick drop in demand, we expect the market to continue to move quickly, even if we see some slight increases in Days on Market through the winter.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the September 2017 Market Report. This report includes an explanation of the metrics and notes on data sources and methodology.

Download the latest market snapshot graphics for Ada County and Canyon County:

ADA Snapshot - September 17CANYON Snapshot - September 17

 

 

 

 

 

 

 

 

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This report is provided Boise Regional REALTORS® (BRR). BRR is the largest local REALTOR® association in Idaho, with over 4,300 members and two wholly-owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS) and the Boise Regional REALTORS® Foundation. This report is based primarily on the public statistics provided by the IMLS, available at: intermountainmls.com/Statistics/Static.aspx. These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance.  || The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings). If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

Ada County Home Prices Reach New Record in August While the Pace of Growth Steadies

Three main factors continue to drive housing demand in Ada County — increased economic development, limited housing supply, and a growing population — resulting in a record high median sales price in August 2017 of $278,000, up 9.6% from a year ago.

Yet while the actual median sales price continues trending upwards, the rate at which it does so… Click To Tweet Think of it like driving your car up a hill: as the road gets steeper, the speed at which you drive decreases. You’re still gaining ground, just not as quickly.

MSP vs YOY Percent Change in Median Sales Price for Ada County

In January 2015, the Ada County real estate market began to see steadier, year-over-year price growth each month, at 7.9% on average through August 2017. Looking back to January 2012 (when the market recovery began) through December 2014, year-over-year price growth fluctuated each month at a much higher average of 13.2%.

These early fluctuations were closely tied to changes in mortgage interest rates.

Rising home prices are great for sellers and our economy overall, but eventually, can cause affordability concerns for buyers, even with low mortgage interest rates. Slowing price increases could be an early indicator of the market coming back into balance, but as long as consumer demand outpaces the number of homes for sale, that low supply vs. high demand relationship should keep actual prices moving up.

Canyon County is experiencing the same slowing price growth. From January 2012 to December 2014, the average monthly, year-over-year median sales price increase was 18.9%, compared to the average for January 2015 to August 2017 of 10.5%. The actual median sales price in Canyon County for August 2017 was not a new record, but it was up 11.0% from August 2016 to $183,000.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the August 2017 Market Report. This report includes an explanation of the metrics and notes on data sources and methodology.

Market Report - August 2017_Page_03

Download the latest market snapshot graphics for Ada County and Canyon County:

ADA Snapshot - August 17

CANYON Snapshot - August 17

 

 

 

 

 

 

 

 

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This report is provided by the Ada County Association of REALTORS®, which began doing business as Boise Regional REALTORS® (BRR) in 2016. BRR is the largest local REALTOR® association in Idaho, with over 4,300 members and two wholly-owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS) and the Boise Regional REALTORS® Foundation. This report is based primarily on the public statistics provided by the IMLS, available at: intermountainmls.com/Statistics/Static.aspx. These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance.  || The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings). If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

2018 Proposed Bylaws Amendments

2018 Proposed Bylaws Amendments

Per Article 17 of the Bylaws of Boise Regional REALTORS® (BRR), the Bylaws may be amended by majority vote at any meeting, when notice of the proposed amendments have been given at least 10 days prior to the time of said meeting.

BRR’s Bylaws Committee and Board of Directors are proposing amendments to its Bylaws, to be voted on in their entirety, by BRR REALTOR® members at the Annual Membership Meeting — September 28, 2017, at 9:00 a.m. at JUMP, located at 1000 W Myrtle Street, in downtown Boise.

The proposed amendments are now available for review, in accordance with the minimum 10-day review period:

SUMMARY OF PROPOSED BYLAWS AMENDMENTS FOR 2018 (PDF)

Questions about the proposed changes may be submitted to Andy Enrico, 2017 Chair of the Bylaws Committee at andy@andyenrico.com or 208-866-0302; or, to Chief Executive Officer, Breanna Vanstrom at breanna@boirealtors.com or 208-947-7228.

For more details on this year’s Membership Meeting, including presentations by REALTOR® Leigh Brown, an expert panel discussion on “Engaging Consumers Through Emerging Technologies,” and more, please visit the event page and register now!

What Your REALTOR®’s Designation Means

Finding the right professional to help you navigate a real estate transaction is smart. At BRR, we always recommend working with a REALTOR®. That term, “REALTOR®,” indicates a real estate licensee who is also a member of the National Association of REALTORS® and has agreed to abide by a strict Code of Ethics.

And within the REALTOR® membership, there are those who have earned additional designations, giving them additional knowledge and resources into various niche markets or pieces of the transaction.

We’ve compiled a list of directories where you can search for a REALTOR® based on these designations:

For Residential Real Estate Services

ABR

Accredited Buyer’s Representative (ABR®) — Find a REALTOR® focused on working directly with buyer-clients at every stage of the home-buying process.

 

 

CRS

Certified Residential Specialist (CRS) — Find a REALTOR® who has completed advanced education around the listing and sale of residential real estate, and who completes a certain number of transactions annually.

 

 

mrpdesc

Military Relocation Professional (MRP) — Find a REALTOR® focused on working with current and former military service members.

 

 

rsps_logo

Resort and Second-Home Property Specialist (RSPS) — Find a REALTORS® who specializes in buying, selling, or management of properties for investment, development, retirement, or second homes in resort, recreational, and/or vacation destinations. (NOTE: Select “Resort & Second-Home Property Specialist” under the Certifications section.)

 

SRS_vctrLGO+txtSeller Representative Specialist (SRS) — Find a REALTOR® focused on working directly with seller-clients.

 

 

SRESSeniors Real Estate Specialist® (SRES®) — Find a REALTOR® focused on meeting the needs of maturing Americans when selling, buying, relocating, or refinancing residential or investment properties.

 

 

For Commercial Real Estate Services

CCIM-220Certified Commercial Investment Member (CCIM) — Real estate professionals who are experts in the commercial and investment real estate industry. CCIMs include brokers, leasing professionals, investment counselors, asset managers, appraisers, corporate real estate executives, property managers, developers, institutional investors, commercial lenders, attorneys, bankers, and other more.

 

CPMCertified Property Managers® (CPM®) — Experts in the management of public housing developments, apartment complexes, homeowners’ associations, manufactured housing parks, mixed use and office buildings, parking garages, single- and multi-family rental housing, student housing, and more.

 

 

SIORSociety of Industrial and Office REALTORS® (SIOR) — Specialists in the industrial and office markets of real estate, with a minimum of three years’ experience and who have completed a certain number of transactions.

 

 

Other Business Specialties

ACLAccredited Land Consultants (ALCs) — REALTORS® who are experts in brokering sales and purchases of land, including investments, tax deferred 1031 exchanges, and more.

 

 

CIPSlogoCertified International Property Specialist (CIPS) — REALTORS® who have undergone specialized training focused on conducting business in the international real estate arena.

 

 

PrintGreen — REALTORS® who have taken advanced education to counsel clients on issues of energy efficiency and sustainability in real estate.

 

 

SFRShort Sales and Foreclosure Resource (SFR®) — REALTORS® who have taken advanced education to help buyers and sellers of distressed properties. (NOTE: Select “Short Sales and Foreclosure Resource” under the Certifications section.)

 

To search for REALTORS® across these designations and more, nationwide or here in the Boise region, visit realtor.com® or the National Association of REALTORS® using their “Find a REALTOR®” tools.

Are you a REALTOR® looking to get on one of these lists? Visit NAR’s Designations and Certifications page for details on the designations listed above. You’ll also find information about other programs that will enhance your business management skills and knowledge of the real estate industry, including: At Home With Diversity® (AHWD®), Certified Real Estate Brokerage Manager (CRB), Certified Real Estate Team Specialist (C-RETS), Counselors of Real Estate (CRE), Graduate REALTOR® Institute (GRI), Performance Management Network (PMN), Pricing Strategy Advisory (PSA), Real Estate Negotiation Expert (RNE), e-PRO®, as well as, the General Accredited Appraiser (GAA) and Residential Accredited Appraiser (RAA).

Ada and Canyon County Housing Inventory Down for 34 Consecutive Months

At Boise Regional REALTORS® (BRR), we feel like we’ve been talking about low inventory for months… and for good reason.

A few weeks ago, Zillow’s Chief Economist Svenja Gudell posted on Twitter: “Inventory down YoY for 25 consecutive months now. We’re just past 2-years into the #inventorycrisis.” While we never like when the term “crisis” is used to describe the housing market, the sentiment reflects the pressure that many home buyers are feeling caused by the low inventory levels, especially for existing homes.

Ada and Canyon County Housing Inventory Down for 34 Consecutive Months Click To Tweet

Gudell’s comments were based on nationwide trends, so what does this look like in the Boise Region?

Based on monthly data, inventory of existing homes in both Ada and Canyon counties has been down year-over-year for 34 consecutive months, starting October 2014. Let’s break this down by inventory (supply) and pending sales (demand)…

Metrics Ada Existing Canyon Existing
Oct-14 Jul-17 % Chg Oct-14 Jul-17 % Chg
Inventory (Supply) 1,702 1,238 -27.3% 886 600 -32.3%
Pending (Demand) 628 1,078 +71.7% 307 537 +76.6%
Months Supply of Inventory 3.2 1.4 -56.3% 3.3 1.5 -54.5%

 

Inventory of existing homes in Ada County was at 1,702 in October 2014 and 1,238 in July 2017, a decrease of 27.3%. In comparison, there were 628 pending sales in October 2014 versus 1,078 in July 2017, an increase of 71.7%. Pending sales are homes under contract that should close within 30-90 days.

Looking at months supply of existing inventory — which takes the number of homes for sale divided by the average number of sales by month — there were 3.2 months in October 2014 in Ada County to 1.4 months in July 2017, a drop of 56.3%. (A balanced market—not favoring buyers or sellers—is typically between 4-6 months supply of inventory.)

In Canyon County, inventory of existing homes was at 886 in October 2014 and 600 in July 2017, a decrease of 32.3%. In comparison, there were 307 pending sales in October 2014 versus 537 in July 2017, an increase of 76.6%. That put months supply of inventory at 3.3 months in October 2014 compared to 1.5 months in June 2017, a drop of 54.5%.

How has the decrease in supply and increase in demand influenced home prices in the Boise Region? The median sales price of existing homes in Ada County increased 34.2% between October 2014 and July 2017, and increased 42.2% in Canyon County during that same period, illustrating BRR’s familiar refrain of how home prices are being driven by demand compared to supply.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the July 2017 Market Report. This report includes an explanation of the metrics and notes on data sources and methodology.

Download the latest market snapshot graphics for Ada County and Canyon County:

ADA Snapshot - July 17

CANYON Snapshot - July 17

 

 

 

 

 

 

 

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This report is provided by the Ada County Association of REALTORS®, which began doing business as Boise Regional REALTORS® (BRR) in 2016. BRR is the largest local REALTOR® association in Idaho, with over 4,000 members and two wholly-owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS) and the Boise Regional REALTORS® Foundation. This report is based primarily on the public statistics provided by the IMLS, available at: intermountainmls.com/Statistics/Static.aspx. These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance.  || The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings). If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

REALTORS® > Tech

REALTORS greater than Tech slider

Adapted from BRR’s weekly “Broker Bulletin” email series.

Did you catch the Inman article, “3 things real estate agents will always do better than tech disruptors,” written by Anthony Hitt, CEO for Engel & Völkers Americas? If not, I wanted to bring it to your attention.

The key takeaway was this: “Agents who embrace technology as a way to enhance their existing skill sets, understand how to pivot and hone their ability to deliver a superior experience to their customers will be around for a very long time.”

I want to emphasize the idea of using technology to enhance your services.

It’s very easy to see technology as a threat to our industry, but I would argue that’s it’s a threat to (or change agent for) certain tasks of the transaction (search, transaction management, etc.) and to agents who are unable or unwilling to do what Mr. Hitt suggests: pivot and hone their services.

Here are the three areas he says where REALTORS® are greater than tech:

  1. Offering a personalized white glove experience — Great agents know how to create a personalized experience for each of their clients throughout the sales process, which a website or device simply cannot offer.
  1. Understanding the emotional impact — A good agent understands the emotional elements of this process for the buyers and sellers and doesn’t treat it as a simple, formulaic transaction.
  1. Guiding buyers and sellers — Technology can use certain algorithms, follow strict parameters and return search results, but it doesn’t understand why those parameters were given, offer feedback based on experience or market knowledge, or alter search criteria.

While I don’t think you would disagree with any of these things, we never talk about them. We don’t weave these ideas into our business philosophies and practices and review them on a regular basis. Instead, we talk about “how to get more agents using the new technology we implemented,” or “how to get more listings in your pipeline.” Those things are important, but we have to get back why we’re doing what we’re doing (shout out to Simon Sinek’s TED Talk), knowing the value we bring to the transaction, and then tell that story in our marketing, through our interactions with clients, etc. — while also delivering the results.

I don’t disagree that new products and services from tech companies can feel threatening when they’re first launched (and I’m not looking at any one company in particular, nor is this meant to start a debate about any of them). And I’m certainly not going to pretend that changing technology will not affect our business or impact customer preferences and expectations. Especially when there are literally hundreds (thousands?) of tech companies out there looking to change the way real estate is experienced by consumers.

These companies are spending millions and millions of dollars to figure out how to make buying or selling a home more efficient, more streamlined, more, whatever.

But you already do that.

So, use technology to help you do it better, and keep focused on serving clients before, during, and most importantly, after the transaction. You are closer to the consumer experience than any tech company, and you can see desires change and shift in real-time. Meaning, you can more quickly pivot and hone your services than any tech company ever could.

2017 Mid-Year Housing Summit Recap


Thanks to everyone who attended the 2017 Mid-Year Housing Summit from Boise Regional REALTORS®. If you missed the event, don’t worry! A summary of the discussions and links to the various presentations are available here.

Highlights from the Treasure Valley Policy Survey

Vaughn-BRR presentation_image

Dr. Justin Vaughn, Co-Director of the Center for Idaho History & Politics at Boise State University, presented the highlights from the most recent Treasure Valley Policy Survey, which gauged opinions and perceptions of Treasure Valley residents on a variety of topics, such as living and working in the Treasure Valley, economic development, taxes, education, transportation, and housing.

 

Justin Vaughn

The survey was conducted in September 2016, and the key findings were that residents view life in the Treasure Valley very positively, especially the quality of life, citing it as a good place to raise a family and build a career. The top reasons for living here included low crime, low cost of living, and a strong economy. The survey also found that there is concern about the pace of growth, and divided attitudes among Treasure Valley residents about how to fund affordable housing. For more details on the survey’s findings, download Dr. Vaughn’s presentation.

2017 Mid-Year Residential Real Estate Update

Mid-Year Housing Summit 2017 UPDATED 07122017 - shareable_image

Boise Regional REALTORS® CEO Breanna Vanstrom presented the market update.

Market Update

The Mid-Year Summit is an opportunity to take a step back halfway through the year to evaluate how the market has performed, compared to the same time last year. You can view the slides here, watch a video captured via Facebook Live, or read a summary of Breanna’s presentation below…

BRR Market Update presented by BRR CEO Breanna Vanstrom

Posted by Boise Regional Realtors on Thursday, July 20, 2017

Ada County homes sales are on track to surpass the $3 billion-mark for the first time in 2017. Year-to-date through June 2017, the total dollar volume sold was at $1.46 billion, which was 7.4% higher than the same time last year. The total dollar volume sold Canyon County year-to-date through June 2017, was at $ 417.1 million, which was 14.7% higher than through June of 2016.

BRR’s message to members has been consistent this year and last year: “Our housing market is growing from consumer demand vs. supply — not from speculation as was common a decade ago.” In addition, increased sales prices for newly constructed homes have also been pushing up the total dollar volume figures in 2017.

Three things continue to drive demand for housing in the Boise Region: increased economic development, limited housing supply putting pressure on inventory, and a growing population.

Yet while the actual median sales price continues to trend upwards, based on these factors, the rate at which it is increasing has been slowing down. Year-over-year price gains grew consistently through 2012, led by low mortgage rates and more sales at higher price points.

While the actual median sales price for both counties continues to trend upwards, the rate at which it does so has been more balanced since January 2015. It is important to explain that this slowdown in growth does not mean demand is waning. In fact, year-over-year demand is up, and in just the past few months, the number of pending sales have outpaced inventory.

How does this level of demand vs. supply, increasing (but leveling) prices affect affordability?

The National Association of REALTORS® (NAR) Housing Affordability Index (HAI), and an index value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing home. An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced existing home. The higher the number the more affordable homes are in comparison to the median income.

BRR replicated NAR’s formula using local data to calculate HAI for Ada County on an annual basis and compare it to NAR’s index for the country overall. In 2016, Ada County’s HAI was at 174.8, a decrease of 2.8% compared to 2015, but 4.5% higher than the U.S. overall.

Our market is still affordable when compared to the nation as well as the Western and Pacific Northwestern regions. Looking at NAR’s figures, based on metropolitan statistical areas (MSAs), the Boise City-Nampa MSA was more affordable than Salt Lake City, Denver, Portland, and Seattle, in 2016. For markets with similar populations, we were more affordable than Cape Coral, FL, Colorado Springs, CO, and Lakeland, FL, but less affordable than Winston-Salem, NC, Syracuse, NY, and Akron, OH.

Certainly, the local economies, demographics, and other factors of the markets cited affect affordability in each area, but the comparison is a helpful benchmark as Boise’s growing population is a driver of home prices relative to supply.

So what can REALTORS® do to help their clients in these current market conditions? Three things: strategic prospecting, strategic listing terms, and setting expectations.

REALTORS® can look to their prospects and databases to identify property owners who could sell but don’t also need to buy, or buy locally. For example, people relocating for retirement or work, investors looking to cash-out single-family properties; or, “default” landlords — people who retained a home after a move or another purchase because they couldn’t afford to sell it previously (either didn’t have the equity, needed a quick move, etc.) and have been holding that property as a rental.

To help prospective sellers nervous about listing their home and not being able to find a place to move, consider making the acceptance of a purchase offers contingent on the successful purchase of another home or completion of new construction, rent-back agreements, or maybe extended closing periods.

To help keep buyer and seller expectations in line with the market, here are a few tips:

  • REALTORS® can review market comps regularly, talking to sellers about price adjustments or changing terms, based on what has sold, to avoid buyer fatigue or disinterest if the home is on for “too long.”
  • Discuss the differences between offer prices and appraisals, and what to do when there’s a gap.
  • With home inspections, help sellers determine what should be fixed instead of moving on to another buyer who “might not ask them to fix” the repair in question. For buyers, if they ask for too many repairs or concessions, could they lose the house and have to start over?
  • Most importantly, know your market stats specific to your listings — it is not a seller’s market for everyone, so don’t over promise what you can deliver if you know days on market or supply of homes in a particular segment may not generate a quick sale or multiple offers.

Investing in Our Community Panel Discussion

2017 Housing Summit Flyer 7.5.2017 - panel discussion

The last presentation of the summit was a panel discussion featuring Clark Krause, Executive Director of Boise Valley Economic Partnership (BVEP); Georgia Meacham, REALTOR® and housing advocate; Jeff Sayer, Managing Partner at Rectify Horizons; and moderator Chase Craig, REALTOR® and Vice Chair for BRR’s Data Strategies Advisory Group.

The topic of the panel was “Investing in Our Community,” and the discussion focused on developments happening in our region and around the state, as well as resources from the National Association of REALTORS®. The panelists talked housing affordability, innovative ideas for affordable housing, cost of living, quality of education, and wages. They also touched on factors businesses consider when looking to relocate or expand to the Boise region. Two recurring themes in the discussion were talent and infrastructure. We need to invest in, and attract capital for, building infrastructure and educating our workforce, both of which are needed as we continue to grow.

How does this all relate to BRR members? REALTORS® may sell homes, but they also change their communities. Georgia encouraged REALTORS® to get involved at the local, state, and national association level, to participate in the association’s community outreach efforts, and to invest in RPAC (the REALTOR® Political Action Committee) to protect homeownership and the real estate industry.

Panel

Event Photo Gallery

Buyer Demand and New Construction Pricing Drive the Boise Region’s Home Prices to Record Highs

Ada County’s median sales price in June 2017 reached $273,950, an increase of 8.7% over June 2016. The median sales price in Canyon County reached $184,000 last month, an increase of 12.4% compared to last year. Both were record highs.

Three things continue to drive prices up in the Boise Region: consumer demand, lack of inventory, and higher-priced new construction — not market speculation as was common a decade ago.

To measure each of these market drivers, we took a deeper look at activity for pending sales, months supply of inventory, and the median sales price for new construction.

Pending Sales is a key indicator of consumer/homebuyer demand, counting the number of homes under contract that should close within 30-90 days. In June 2017, there were 1,854 pending sales in Ada County, up 7.5% from the previous year. In Canyon County, there were 750 pending sales, up 10.8% from the previous year. In both counties, the year-over-year increase in pending sales was primarily due to new construction as buyers are finding it harder to find existing inventory, especially in the lower price points.

Months Supply of Inventory (sometimes referred to as absorption rate or supply-demand ratio) takes the number of homes for sale divided by the average number of closed sales. A balanced market—not favoring buyers or sellers—is typically between 4-6 months of supply.

In June 2017, the months supply of inventory for existing/resale and new construction combined was at 1.7 months in Ada County, down 15.0% from June 2016. Canyon County was at 1.8 months of inventory in June 2017, down 18.2% from the previous year. Here’s how that breaks down by each segment and by price point:

MSI tables 062017

June’s market data is indicating a more balanced new construction market in Canyon County, at 4.4 months of supply, an increase of 4.8% from last year. Also, buyers who prefer an existing home may have more luck in Canyon County, especially if they’re looking to purchase at $300,000 or above.

Ada County’s inventory for both existing and new lags behind demand in all price points, with a few exceptions: existing or new construction homes priced over $700,000, and at least in June 2017, new construction priced $160-$199,999, primarily in Kuna and Garden City.

Median Sales Price is the price at which half the homes sold for more, and half sold for less. Because more newly constructed homes are selling at higher price points, it’s bringing up the overall median price in both counties.

In June 2017, the median sales price for new homes in Ada County was $345,450, up 14.3% over June 2016. Further, 20.3% more new homes sold in June 2017 than June 2016. In Canyon County, the median sales price for new homes was $239,495, up 6.8% compared to last year, and 33.3% more new homes sold year-over-year.

For comparison, existing home sales in Ada County were down 3.5% year-over-year (due to fewer homes being available to purchase), and the median sales price was at $255,000, up 6.3% over June 2016.  In Canyon County, existing home sales were up 8.9% and the median sales price was at $175,350, up 11.9% over June 2016.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the June 2017 Market Report. This report includes an explanation of the metrics and notes on data sources and methodology.

Download the latest market snapshot graphics for Ada County and Canyon County:

ADA Snapshot - June 17CANYON Snapshot - Jun 17

 

 

 

 

 

 

 

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This report is provided by the Ada County Association of REALTORS®, which began doing business as Boise Regional REALTORS® (BRR) in 2016. BRR is the largest local REALTOR® association in Idaho, with over 4,000 members and two wholly-owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS) and the Boise Regional REALTORS® Foundation. This report is based primarily on the public statistics provided by the IMLS, available at: intermountainmls.com/Statistics/Static.aspx. These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance.  || The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings). If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

 

Clarifications to the Media Coverage of the May 2017 Market Report

You may have read the latest IBR article which led with average home prices in Ada County. We wanted to clarify a few of the points noted, in case you get questions from consumers.

The article was correct in noting that the average sale price for Ada County exceeded $300,000 for the first time, however, BRR does not report on average prices based on the fact that this figure can be skewed up if a few expensive homes sell one month, and not the next. Our market analyses focus on the median sales price, as it’s the midpoint of all home sales and gives a better baseline to track month-over-month and year-over-year. While that explanation is referenced in the article, it’s an important clarification for consumers unsure of the difference between the two metrics.

Canyon County’s median home price in May 2017 was 10.8% higher than May of 2016, however, it was not the record. That said, it was just $410 below the record high median sales price of $179,900 set in April 2017.

And to correct two of the quotes attributed to BRR’s Chief Executive Officer…

We shared that while there is a shortage of inventory overall and in the lower to middle price points, there is more inventory available priced above $500,000, in both existing and new construction. For those homeowners who are interested in able to move up in price point, they likely won’t feel the same supply constraints as buyers in other price points.

We also confirmed that we are seeing an increase of existing inventory month-over-month, which is positive, but more inventory is definitely needed. When asked where that might come from if not from new construction, we talked about homeowners who could sell and don’t need to buy locally, potentially freeing up some additional existing inventory. For instance, people moving out of state for work or other reasons (misquoted to say that “many people are moving out of the Treasure Valley,” which is inaccurate); those who own single-family rentals and no longer want to be landlords; and, again, those who can move up in price point.

If you have any questions about this article, others you’ve read, or market statistics shared by BRR, please don’t hesitate to call.

Now Accepting Applications for 2018 Directors!

 

Thank you to those who applied. Applications for director positions are now closed. Click here to apply for a BRR committee. Open now through October 1, 2017.

Boise Regional REALTORS® (BRR) is the largest local REALTOR® association in Idaho, with over 4,000 members, and two wholly owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS), and the REALTORS® Foundation. The mission of BRR is to provide members with resources to conduct their businesses ethically, professionally, and successfully.

To accomplish this, we rely on the experience and expertise of volunteer leaders (like you!) to serve on our Board of Directors. In doing so, you will make decisions on professional standards, education, community engagement, public affairs issues, and more, on behalf of all members.

Through your volunteer service, you will gain valuable industry insights, improved leadership skills, and build professional relationships with other leaders — locally, nationally, and across the state — that, in turn, helps you in your own business and other volunteer commitments.

From June 12-22, 2017, the BRR Nominating and Elections Committee will accept online applications for the following leadership positions, with terms beginning in January 2018:

  • Boise Regional REALTORS® Vice President — one (1) open position
  • Boise Regional REALTORS® Treasurer — one (1) open position
  • Boise Regional REALTORS® Director — one (1) open position
  • Idaho REALTORS® State Director from BRR — one to two (1-2) open positions*
  • National Association of REALTORS® National Director from BRR — one (1) open position*
  • Foundation Director, Member-at-Large — one (1) open position**
  • Intermountain MLS Director from BRR — five (5) open positions**

More about the BRR Director, Vice President, and Treasurer openings:

According to BRR Bylaws Section 11.5, all candidates for the BRR Board of Directors shall have been an active REALTOR® Member of BRR for the two (2) years immediately preceding the election, and shall have served on at least one Association or Association subsidiary committee or task force. Additionally, candidates for BRR Treasurer and Vice President, shall have served as a member in good standing on BRR’s Board of Directors for at least one (1) year in the three (3) years immediately preceding the election, and, agrees not to serve in an officer position on another REALTOR® Association Board of Directors during their term(s) on the Board of Directors.

Download the full list of positions here, including each positions’ responsibilities, qualifications, terms of service, and related meetings. Thank you for your interest in serving!

* If BRR’s membership is at or above 4,400 REALTOR® members on July 31, 2017, an additional state director seat will be allocated to BRR. If BRR’s REALTOR® membership stays at or above 4,000 by July 31, 2017, a second national director will be allocated to BRR. If not, these additional seats will not be voted on.

** Foundation and IMLS Directors are not voted on by the membership. Foundation applications will be forwarded to the Foundation Board of Directors for selection and appointment, and IMLS applications will be vetted by BRR’s Nominating and Elections Committee, and then appointed by the BRR Board of Directors.

Not interested or eligible for a Board position but still want to get involved? Click here to apply for a BRR committee. Open now through October 1, 2017.