More New Construction Homes Available Than Existing in Ada County

Ada County hit another record low for inventory in December 2017, with just 1,391 homes for sale — a 6.6% drop from December 2016. While we’ve discussed the lack of inventory at length in our previous market reports, a new twist on the inventory shortage showed up in the December 2017 numbers…

There were 317 more new homes for sale in Ada County in December 2017 than existing homes. The actual numbers reported for Ada County were 854 new homes, compared to 537 existing homes on the market in December 2017.

Looking back at the year, there were five months that this happened, but December 2017 had the largest spread. (We saw this once in December 2016, but never before then in our ten-year data set.)

As reported by the National Association of REALTORS® (NAR), we need builders to bring more product online to pull us out of our local – and nationwide – inventory shortage, so an increase in new construction is welcomed.

But some question if this strategy could lead to another wave of overbuilding like we saw in the mid-2000s. At that time, new construction was more speculative, which led to more new houses than there was demand. Today’s new construction inventory levels are much more in line with buyer demand for new homes, which has increased with the Boise region’s population growth.

The Months Supply of Inventory figures for new construction in Ada County over the past 4-5 years indicate a general balance between supply and buyer demand. In December 2017, the months supply of new homes was at 4.1 months. A balanced market—not favoring buyers or sellers—is typically between 4-6 months of supply.

December 2017 Chart

That’s a good starting point for builders, as they’re not too far behind demand right now. Although, we did see the months supply of new homes dip below 4.0 months last summer, so the more product that can get started now, the better.

A mix of price points among newly constructed homes will also be necessary, but that’s proved difficult with the rising cost of land, labor, and materials. This was evident in December 2017, as Ada County’s median sales price for new homes saw a record high of $361,030, up 13.5% from December 2016. (In comparison, the median sales price of existing homes in Ada County was at $254,250 in December 2017.)

Additional information about trends within Ada County as well as Canyon County, by price point, by existing and new construction, and by neighborhood, are now available in the December 2017 Market Report. This includes an explanation of the metrics and notes on data sources and methodology.

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

ADA Snapshot - December 17   CANYON Snapshot - December 17    GEM Snapshot - December 17

Download print quality snapshot graphics for Ada County, Canyon County, and Gem County.

BRR’s 2017 Year-End Residential Real Estate Market Report will be released next week.

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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.

 

$3 Billion Worth of Homes Have Sold in Ada County, Setting New Record

Ada County home sales surpassed the $3 billion-mark for the first time, based on Total Dollar Volume figures year-to-date, January 1–November 30, 2017.

Historically, the month of December adds another $100-150 million worth of sales, on average going back to 2005, so we should see Total Dollar Volume exceed $3.1 billion for all of 2017.

Year-to-date through November 2017, nearly 10,000 homes sold in Ada County, up just 2.6% compared to 2016. Breaking this down by property type illustrates the impact limited supply has had on existing home prices, as well as higher building costs on new home prices:

November 2017 Table

As shown in the chart above, existing home sales were nearly even with last year, yet total dollar volume increased by 9.2%. This means that individual home sale prices had to increase, as buyers competed for persistent, limited inventory of existing homes, which was down 13.2% compared to last year at this time.

In contrast, new home sales were up by 10.9% over last year, with a slight uptick in inventory. With a more balanced supply of new homes compared to demand, the 17.9% growth in total dollar volume mostly reflects the increased costs of land, materials, and labor that builders are including in new home prices.

Total Dollar Volume, for existing and new construction combined, has been steadily increasing since 2009. The previous high point was in 2006 when Total Dollar Volume Sold was nearly $2.7 billion. Here’s a historical look at Total Dollar Volume since 2005:

November 2017 Charts

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood — including monthly statistics for November 2017 — are now available in the monthly 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, Canyon County, and Gem County:

ADA Snapshot - November 17

CANYON Snapshot - November 17GEM Snapshot - November 17

Download print quality snapshot graphics for Ada CountyCanyon County, and Gem County.

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This report is provided Boise Regional REALTORS® (BRR). BRR is the largest local REALTOR® association in Idaho, with over 4,400 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.

Many Reasons for Lack of Entry-Level Housing Inventory in Ada County

October 2017 marks a full three years of falling inventory, specifically in the number of existing homes for sale in Ada County. October 2017 marks a full three years of falling inventory for existing homes in Ada County. Click To TweetThere were 1,023 existing homes for sale in Ada County in October 2017, down 8.3% from October 2016, and down nearly 40% from October 2014 when the decline began.

There are many reasons the Boise Region is facing a lack of homes for sale—particularly for those priced below $250,000.

  • The most obvious reason for the increased demand for housing, overall, is the local population growth.
  • The combination of low mortgage rates and rising rents often make purchasing more affordable than renting.
  • Builders—especially those setback by the recession—haven’t kept up with the demand for lower- to-mid-priced homes, and increasing costs for labor, land, and materials won’t allow many to do so anytime soon.
  • Many municipalities’ existing planning, zoning, and permitting rules can’t manage the influx of project requests, further slowing down potential housing development, even those projects a city may want to approve.
  • The availability of lower-priced homes is further limited by people choosing to stay in their homes longer—10-year median today vs. 6 years in 2012— rather than moving up in price point and freeing up entry-level properties for first-timers.
  • When lower-priced homes do become available, investors can often outbid buyers and then flip the property to a higher price point, or turn it into a higher-priced rental property.

So how do we break out of this low inventory cycle and reach a more balanced market? While there are no simple answers, a collaborative approach between property owners, builders, REALTORS®, and policymakers, is our best bet.

 Property Owners

Homeowners and investors who purchased at the bottom of the market—right around January 2012—or who wanted to sell during that time but couldn’t afford to do so, should talk to a REALTOR® to understand their true market value, estimate their equity position, and better understand their options.

For those who are able to move up in price point or purchase new construction may be pleasantly surprised at the inventory that is available.

Investors who own single-family rentals may find that it’s a great time to get those properties back on the market, perhaps adding larger multi-family units or commercial properties to their portfolio, or using the proceeds to make improvements to other properties.

 REALTORS®, Builders, and Policymakers

Together, REALTORS®, builders, and policymakers must evaluate local ordinances and zoning, planning, and permitting processes, the costs associated with developing land and infrastructure, and the long-term plans we have for our community, to collaboratively plan for and build homes that strengthen and support the growth of our area, while also protecting the quality of life we all enjoy.

With a mix of carefully planned new construction development, and incremental inventory added by current property owners, we can hopefully stave off affordability concerns by bringing balance back to the market.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the October 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 - October 17

CANYON Snapshot - October 17

 

 

 

 

 

 

 

 

Download print quality snapshots for Ada County and Canyon County.

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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.

Is it a Seller’s Market for Everyone? A Tale of Two Homes in Ada County

A recent USA Today article discusses how high demand and low supply have made it a seller’s market,  especially for lower-priced homes. However, “that does not mean every house will sell or sell quickly.”

Sellers can still overprice in a competitive housing market if they don’t work with a REALTOR® to provide them with the most current and accurate data specific to their home.

The Boise Region is certainly experiencing that high demand, low supply dynamic; however, there is a segment of the market that is quite balanced and potentially susceptible to overpricing.

To get a local look at this national trend, we analyzed Ada County data from September 2017 — percent of original list price received, supply of inventory, and days on market — for existing homes priced below $250,000 and above $700,000.

In Ada County, the percent of the original list price received at closing was 97.9%, on average for existing homes across all price points. This means that sellers reduced their price after listing or through negotiations with a buyer by about 2%.

A Tale of Two Ada County Homes

Taking a closer look at different price points, though, we see that existing homes listed at or above $700,000 received 90.3% to 94.8% of their original list price in September 2017. Compare that to existing homes listed at or below $250,000, which received 99.0% of their original list price, on average.

This makes sense when looking at supply by price point. As of September 2017, existing homes listed at or below $250,000 only had 0.6 months of supply, meaning buyers have to compete for homes with strong offers and are limited on what they can negotiate on, in most cases.

Compare that to existing homes listed at or above $700,000 or more, where there was at least 5.6 months of supply in September 2017, reflecting a more balanced market. As indicated by the percent of original list price received numbers, because buyers have more to choose from at this price point, they also have more room to negotiate on price.

The article notes that, “If a listing is overpriced and sits on the market for too long, it gets stale. Potential buyers will see the time on market and click past your listing, often without even looking at it.”

In Ada County, the average number of days between when an existing home was listed and went under contract — referred to as “days on market” — was at 25 days in September 2017, down 5 days from September 2016.

But again, looking at the top and bottom price points as of September 2017, existing homes listed at or above $700,000 spent an average of 60 days or more on the market, compared to just 14 days, on average, for homes listed at or below $250,000.

“Every market, city, neighborhood, and home will be different, even within the price points cited,” said Katrina Wehr, 2017 President of Boise Regional REALTORS® and Associate Broker with Keller Williams Realty Boise. “Which is why we always recommend home buyers and sellers work with a REALTOR® to get the most current and accurate information specific to their situation.”

 

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This report is provided Boise Regional REALTORS® (BRR), which 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 information is based on data from IMLS as of October 31, 2017, for existing, single-family homes sold in September 2017 as reported to IMLS. 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, multi-family properties (like apartment buildings), or new construction single-family homes. IMLS data is 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. If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

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 has been slowing down.

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

 

 

 

 

 

 

 

# # #

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.