2019 Member Survey

2019 Survey

Starting next week (August 19th) members will be receive an email from T3 Sixty, a third-party national consulting firm, requesting their participation in a quick 3-5 minute survey via SurveyMonkey.

They will be asking what you like, don’t like, love, and maybe very much dislike, about the programs and services offered by Boise Regional REALTORS®, to help us continually improve and provide members with valuable resources. All responses will be kept confidential and aggregated to help us refine our 2020 strategic plan and program offerings.

Members who complete the survey can then enter to win one of these great prizes — free local membership renewal for 2020 (aka, dues at a $200 value!), a $100 Amazon Gift Card, a $50 Chandlers Steakhouse Gift Card, or, one of two $25 Gift Cards to the Village at Meridian.

Your feedback and ideas are important and we thank you in advance for completing this survey once you receive it next week.

July 2019 Market Report

MEDIAN SALES PRICE OF ADA COUNTY HOMES DROPS (SLIGHTLY) IN JULY

Key Takeaways:

  • The median sales price was at $349,900 in July 2019 for Ada County, an increase of 9.7% compared to last year, but down 1.3% from June 2019.
  • One reason we’re seeing month-to-month price fluctuations is changes to the “mix” of existing home sales by price range.
  • The year-over-year price gains continue to be driven by more demand than supply. Months Supply of Inventory (MSI) in July 2019 was at 1.9 months, up 13.9% from 1.7 months in July 2018.

Analysis:

In July, there were 1,136 closed home sales and 1,741 homes that went under contract, or “pending”. Both closed sales and pending metrics were up compared to July of 2018, 2.4% and 2.5% year-over-year, respectively. Despite an uptick in sales activity, the median sales price was at $349,900 in July 2019 for Ada County, an increase of 9.7% compared to last year, but down 1.3% from June 2019.

Why the fluctuations in price? One reason is that as the share of existing sales by price range changes on a month by month basis, it results in a new “mix” of existing home sales and impacts the overall median sales price.

Share of Existing Sales by Price Range in Ada County, 2019 YTD

From June to July, the share of home sales in the $160,000 – 199,999 price range increased slightly from 2.1% – 2.5%, and the share of existing home sales in the $500,000-699,999 price range decreased from 11.4%- 10.0%. Also, during this time period, the share of existing home sales in the $1,000,000 or more price range dropped from 1.3% to 0.5%. While the number of higher-dollar home sales is usually low compared to the total number of homes sold, the impact these higher priced sales have on the overall median sales price can be significant.

The current “mix” of home sales is only made possible by the inventory that is available for purchase. We’ve seen increased inventory levels each month since April, with 1,755 homes available for sale at the end of July 2019, an increase of 9.2% from July of 2018. This additional inventory was welcome news as the metro area continues to experience persistently low inventory compared to demand.

While this helps explain the month-to-month decrease, the year-over-year price gains continue to be driven by more demand than supply. One of the metrics used to determine supply vs. demand is Months Supply of Inventory (or MSI). A balanced market—not favoring buyers or sellers—is typically between 4-6 months of supply. Months Supply of Inventory (MSI) in July 2019 was at 1.9 months, up 13.9% from 1.7 months in July 2018.

Despite the increase, July’s MSI is still well below the 4-6 month range that would indicate balanced market. As long as inventory remains far below demand from home buyers, we expect that prices will stay elevated with some month-to-month fluctuations based on the mix of sales and individual prices.


JULY 2019 ELMORE COUNTY HOUSING MARKET UPDATE

Elmore County home sales that closed in July flew off the market at record speed, spending only an average of 13 days on the market before going under contract. This was 45.8% faster than in July 2018 when the average days on market was 24.

The median sales price also set a record at $178,225; an increase of 16.5% compared to the same time last year. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price to get a better idea of the overall trends. Prices continue to be driven home buyer demand and persistently low inventory.

Sales activity was also up in Elmore County in July with 59 closed home sales and 69 homes going under contract, or “pending” — increases of 31.1% and 21.1% respectively, from the year before.

There was a slight uptick in the number of homes available for purchase at the end of the month, 74 in July compared to 69 in June. Despite this increase, July marked 54 months of consecutive year-over-year declines in inventory. Months Supply of Inventory in Elmore County was at 1.8 months — down 28.0% from the same month last year.

The Months Supply Inventory (MSI) metric measures the relationship between pending sales (which measures buyer demand) and inventory (which measures supply). A balanced market— not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.


JULY 2019 GEM COUNTY HOUSING MARKET UPDATE

As of July 2019, the median sales price for Gem County was at $222,125, an increase of 15.5% over the same period last year, and a new record high for the county. We use a rolling 12-month median sales price to get a better idea of the overall trends due to the smaller number of transactions that occur in the area. Home prices have been driven by persistently low inventory versus demand.

There were 21 homes sales in July, down 34.4% from July 2018, and but up 16.7% from last month. Pending sales were also up, with 66 homes pending in July, up 1.5% from a year ago. This left 56 homes available for sale at the end of the month, down 26.3% year-over-year but up 12.0% from June 2019.

Pending sales (or homes under contract) measures buyer demand, while inventory (or homes for sale) measures supply. The relationship between these two metrics is reported as Months Supply of Inventory (or MSI), which was at 2.1 months in July 2019, down from 2.9 months a year ago.

A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.

Sellers are enjoying record high prices in Gem County. If you’re considering a move, talk to your REALTOR® to learn more about the options available to you.


RESOURCES:

Additional information about trends within the Boise Region, by price point, by existing and new construction, and by neighborhood, are now available here: Ada CountyElmore CountyGem County, and City Data Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.

July 2019 Ada County SnapshotEmail cassie@boirealtors.com for Canyon County Market StatsJuly 2019 Elmore County SnapshotJuly 2019 Gem County Snapshot

Download the latest (print quality) market snapshot graphics for Ada CountyAda County Existing/ResaleAda County New ConstructionElmore County and Gem County. Since Canyon County is not part of BRR’s jurisdiction, we do report on Canyon County market trends. Members can access Canyon County snapshots and reports in the Market Report email, or reach out to us directly at cassie@boirealtors.com or annie@boirealtors.com.

# # #

This report is provided by Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, representing real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.

If you have questions about this report, please contact Cassie Zimmerman, Director of Communications for Boise Regional REALTORS®. If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

The data reported is based primarily on the public statistics provided by the IMLS. 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).

Code of Ethics Pop Quiz: Code Enforcement

Code of Ethics Pop Quiz 5: Code Enforcement

Question

You receive notice that a professional standards complaint has been filed against you and your attendance is requested for a hearing. You believe that the complaint is completely unreasonable and think the whole hearing will be a waste of time as it will only make things worse between you and the other REALTOR® involved. Do you:

a.) Refuse to go — after all, you don’t think you did anything wrong.

b.) Go to the hearing and answer all the questions you are asked, providing full, honest testimony and elaborating only when necessary.

c.) Go the hearing and provide the committee with everything you know about this case, making sure to point out the opposing REALTOR’S® professional history and current personal troubles.

d.) Go to the hearing but only reply to questions with 1-word answers. That should move things along and maybe if they see you don’t want to be there, they will let you leave early.

 

Answer

If you answered B, then you are correct!

Our Code of Ethics requires that REALTORS® be willing participants in all professional standards proceedings, which includes providing all of the PERTINENT information to the review committee as well as not disrupting the proceedings through bad behavior. Remember, we all agree to follow this code — in good times and in bad. 

 

What does the National Association of REALTORS® Code of Ethics say?

Article 14 states that REALTORS® should always supply the review committee with all relevant information in their possession and shall not obstruct the review proceeding.

If charged with unethical practice or asked to present evidence or to cooperate in any other way, in any professional standards proceeding or investigation, REALTORS® shall place all pertinent facts before the proper tribunals of the Member Board or affiliated institute, society, or council in which membership is held and shall take no action to disrupt or obstruct such processes.”

The idea of being a willing participant in Code of Ethics misconduct hearings is also touched on in the code’s preamble, which states:

“REALTORS® having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS®.”

If you have information about misconduct (whether yours or someone else’s), you are obligated to bring forward what you know, not to hurt others, but to protect the sanctity of the term REALTOR® and to ensure the best possible service for our clients.

Article 14 recognizes that it can be difficult to file a complaint against another colleague or feel like there might be repercussions against you for your testimony or support of an ethics hearing. With that in mind, standard 14-3 created protections for REALTORS® against retribution for their support of an ethics hearing, which includes protection again threats of action of libel or slander against the person who filed the complaint or against those who spoke at the hearings.

“REALTORS® shall not obstruct the Board’s investigative or professional standards proceedings by instituting or threatening to institute actions for libel, slander or defamation against any party to a professional standards proceeding or their witnesses based on the filing of an arbitration request, an ethics complaint, or testimony given before any tribunal.”

 

Additional Resources on Article 14:

 

Example Hearing:

Part 1: Opening Statements and Case Presentation

Part 2: Hearing Panel Calls a Recess

Part 3: Cross Examinations

Part 4: Closing Statements

Part 5: Hearing Panel in Executive Session

Part 6: BOD Reviews Decision

 

Example Appeal Process:

Part 1: Appeal Hearing

Part 2: Debriefing of the Appeal Hearing

 

2019 Housing Summits

2019 Ada County Housing Summit                            2019 Elmore County Housing Summit                        2019 Gem County Housing Summit

BRR hosted Housing Summits in Ada and Elmore County in July, and will host the Gem County Housing Summit in August. If you’re interested in attending the Gem County Housing Summit, click here to register. There is no cost for members.

Looking for the Mid-Year Residential Real Estate Updates? Here are the download links:

 

BRR’s new Guide to Civic Engagement was also announced at the 2019 Housing Summits. Learn more about how to get involved on our website and download the handout today!

Guide to Civic Engagement pg 1              Guide to Civic Engagement pg 2

 

EVENT PHOTO GALLERIES

Ada County Housing Summit  | Elmore County Housing Summit | Gem County Housing Summit

Professionalism Award Recipients

BRR's Professionalism Award

BRR’s Professionalism Award is an impartial, peer-to-peer based program that recognizes REALTOR® members for their professional and ethical behavior during transactions. BRR REALTOR® members are able to nominate other BRR REALTOR® members for outstanding professionalism anytime throughout the year.

Award Recipients are nominated and approved by their peers through our awards process. Recipients are recognized on our website and on our social media accounts each quarter once they have been vetted by their peers. To learn more about this program or to submit a nomination, visit our Professionalism Award page.

 

Congratulations to our Professionalism Award Recipients!

March 2019:

  • Sydney Burtwell, Silvercreek Realty Group
  • Becky Enrico-Crum, Andy Enrico & Co. 
  • Gennie Fishburn, Boise Premier Real Estate
  • Alicia Ralston, Ralston Group Properties
  • Becky Schiebout, Keller Williams Realty Boise
  • Dawn Templeton, Templeton Real Estate Group

June 2019:

  • Tracy Brault, Silvercreek Realty Group
  • Cristine Klag, ERA West Wind Real Estate
  • Phil Mount, Amherst Madison

May 2019 Market Report

SUPPLY AND DEMAND DYNAMICS CONTINUE TO
DRIVE HOME PRICES UP IN ADA COUNTY

Key Takeaways:

  • The existing home median sales price reached a new high at $329,000, up 14.7% from May 2018. Local home prices are being driven by the persistently low inventory of existing homes compared to demand.
  • Due to the lack of inventory of homes for sale at the lower price points, the share of higher-priced home sales continued to rise, further driving up the median price for the segment, as well as the market overall.
  • The median sales price for Ada County reached a new record of $342,990 in May 2019, for existing and new homes combined. This was up 12.5% over the same month last year.

Analysis:

The median sales price of existing/resale homes in Ada County reached a new high of $329,000 in May 2019, up 14.7% from May 2018. As noted in previous market reports, local home prices are being driven by the persistently low inventory of existing homes compared to demand.

One of the metrics used to determine supply vs. demand is Months Supply of Inventory (or MSI). A balanced market—not favoring buyers or sellers—is typically between 4-6 months of supply. In May 2019, the Months Supply of Inventory metric for Ada County was at just 1.5 months for all price points combined, and for existing homes priced below $300,000 MSI was at one month.

Our market needs additional inventory, especially existing homes below the $300,000 price point. Homeowners may have more equity than ever as home prices have risen, and those who have considered a move should to contact a REALTOR® to understand their options for selling and buying.

Ada County Existing MSI Chart

Because there are fewer homes available at the lower price points, the share of home sales above $300,000 continued to rise – at 61.3% of all existing homes sales in May 2019. As a result, as more existing homes sell at higher price points, it further drives up the median price for the segment, as well as the market overall.

To that point, the median sales price in Ada County, for existing and new homes combined, reached a new record of $342,990 in May 2019, up 12.5% year-over-year.

For those looking to purchase a home in Ada County, don’t lose hope. We’re still at the beginning of the summer selling season so there will be more homes coming online soon. Get your financing in order and work with your REALTOR® to write a competitive offer so that you’re ready when you find your next home.

 

MAY 2019 ELMORE COUNTY HOUSING MARKET UPDATE

As of May 2019, the median sales price for homes in Elmore County reached $168,900; an increase of 11.5% compared to the same time last year and a new record high. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price to get a better idea of the overall trends.

The number of closed sales in Elmore County also increased to 47 last month — up 67.9% from April, but still down 4.1% from the same month last year.

The Months Supply of Inventory (or MSI) in Elmore County increased to 1.8 months — up 20.0% from the same month last year. However, despite the increase in MSI, there were only 68 homes still on the market in Elmore County at the end of May, down 19.0% from May 2018.

The MSI metric measures the relationship between pending sales (which measures buyer demand) and inventory (which measures supply). A balanced market— not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.

The increase in median home price and closed sales is encouraging news for those looking to sell their home in Elmore County. Work with your REALTOR® to take advantage of the current market and get the most out of your current property. And for those looking to buy a home, keep an eye out! Conditions like this could lead to more homes becoming available in your market.

 

MAY 2019 GEM COUNTY HOUSING MARKET UPDATE

As of May 2019, the median sales price for Gem County was at $213,750, an increase of 11.1% over the same period last year. We use a rolling 12-month median sales price to get a better idea of the overall trends due to the smaller number of transactions that occur in the area.

There were 38 homes sales in May, up 15.2% from May 2018, and up 40.7% from last month. This left 51 homes available for sale at the end of the month, down 12.1% from a year ago.

Pending sales (or homes under contract) measures buyer demand, while inventory (or homes for sale) measures supply. The relationship between these two metrics is reported as Months Supply of Inventory (or MSI), which was at 1.4 months in May 2019.

A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.

Gem County has had persistently low existing/resale inventory for the last several years, resulting in buyer demand outpacing supply, as shown through the low MSI calculation. This, in turn, has caused home prices to rise in Gem County.

Prices will most likely continue to grow and homes will continue to sell quickly, making this market more competitive. Working with a REALTOR® is the best way to find a home you like and gives you your best chance at securing it in markets like this.

 

RESOURCES:

Additional information about trends within the Boise Region, by price point, by existing and new construction, and by neighborhood, are now available here: Ada CountyElmore CountyGem County, and City Data Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.

ADA Snapshot - May 19Canyon County Members Only

Elmore Snapshot - May 19Gem Snapshot - May 19

Download the latest (print quality) market snapshot graphics for Ada CountyAda County Existing/ResaleAda County New ConstructionElmore County and Gem County. Since Canyon County is not part of BRR’s jurisdiction, we do report on Canyon County market trends. Members can access Canyon County snapshots and reports in the Market Report email, or reach out to us directly at cassie@boirealtors.com or annie@boirealtors.com.

# # #

This report is provided by Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, representing real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.

If you have questions about this report, please contact Cassie Zimmerman, Director of Communications for Boise Regional REALTORS®. If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

The data reported is based primarily on the public statistics provided by the IMLS. 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).

 

How to Appeal your Property Tax Assessment

NOTE: All property tax appeals must be submitted to the County Board of Equalizers no later than the fourth Monday in June — this year, the deadline is Monday, June 24, 2019.

It is that time of year when homeowners receive an assessment notice from the county which determines the amount owned through property taxes. If you disagree with the assessed value noted, there is a process for appeals. Here’s a step-by-step guide on what to do:

1.) Determine if the information about your home is correct

The first step in an appeals process is to determine if the information about your home on the assessment is correct. Did they get the number of bedrooms and bathrooms right? What about the size of the lot? Documenting characteristics that you can prove are incorrect will make your appeal stronger.

To locate the characteristics of your property according to the county assessor, visit your county’s online parcel search tool — Ada County, Elmore County, and Gem County.

2.) Work with a REALTOR® to find comparable properties

The next step in the appeals process is to find comparable properties. We suggest working with a REALTOR®, as they can help you identify homes that are similar in size and amenities. Once you have a few properties in mind, look them up on the County’s website to see their assessed value. If there is a significant difference, you can use this information as part of your appeal.

Keep in mind, if the homes identified are currently for sale or have recently sold, those prices are considered the market values, which could differ from the assessed values used to determine property tax. More on those differences here.

3.) Contact your appraiser

Once you have the information you need to make your case, call or email your appraiser, whose information should be on your assessment notice. This will put you in contact with the person who assessed your home allowing you to share your research with them directly.

4.) File an appeal with the County Board of Equalization

If you are still unsatisfied with your assessment after speaking with the appraiser, you can file a formal appeal with the County Board of Equalization. This group will determine if your complaint is valid and make the necessary changes to your assessment if deemed appropriate.

All property tax appeals must be submitted to the County Board of Equalizers no later than the fourth Monday in June — this year, the deadline is Monday, June 24, 2019.

For more information on how to file your appeal, please review the steps on the back of your assessment notice, or, visit the County Assessors’ websites and others for more information:

Interview with Kit Fitzgerald, 2019 RPAC Hall of Fame Inductee

Kit Fitzgerald, Equity Northwest RealtyOn May 15, 2019, Kit Fitzgerald was inducted into the RPAC Hall of Fame for contributing over $25,000 to RPAC in her lifetime. For over 50 years, RPAC has continued to grow and support the real estate industry through local, state, and national legislation and advocacy, none of which would be possible without the support of REALTORS® like Kit.

In honor of her achievement, we decided to interview Kit and ask her a few questions about what RPAC means to her and how she became a Major Investor.

Q: Congratulations on being inducted into the RPAC Hall of Fame. This is a big deal! How do you feel about this recent recognition of your commitment and investments into RPAC?

A: I think its very kind of NAR to recognize this level of commitment. I would gladly give without the recognition as I believe so strongly in working to defend our REALTOR® Party Issues. 

 Q: Well, your passion and dedication to RPAC is definitely worth recognizing. I mean, $25,000 is a lot of money! Why are you so committed to RPAC and its success?

A: We are the only organization in this country fighting for homeownership. Its the foundation of our economy, our citizens, and the American Dream that so many people desire. RPAC and the REALTOR® Party ensures that we have protection for private property rights, flood insurance, no taxes on services, access to financing for our consumers, and so much more. I firmly believe that investing in RPAC is a protection of not only my business and livelihood, but also ensures that Americans have an opportunity to build wealth via equity, have safe neighborhoods, stronger schools and a place to make memories. So many other countries in this world do not have the same opportunities as we do, and REALTORS® are the people who ensure we do.

 Q: Well said! You obviously know a lot about RPAC and its impact on homeownership rights. But that wasn’t always the case, right? How did you become a REALTOR® and how did that lead to you becoming a committed investor in RPAC?

A: I became a REALTOR® after building a home in Meridian in 2002. I’d just moved here from Washington, DC, became quite close with the onsite sales team and was lucky enough for them to offer me an opportunity to sell homes. As for my investment, Id given small amounts to RPAC via dues, but it wasnt until I became involved in the volunteer world of our association for me to learn the extent of what the organization does to protect our business and homeowners everywhere. I was approached by fellow REALTOR®, Jim Johnston from Pocatello, to truly look at what my investment in RPAC means for REALTORS®, and once I learned more, I was all in. 

 Q: Thanks to your “all-in” attitude, many BRR members have stepped up their commitment to RPAC and become Major Investors, largely because of YOUR influence and example. Why do you go out of your way to encourage other REALTORS® to invest into RPAC?

A: For many of the reasons Ive previously stated, Ive encouraged my fellow colleagues to step up their investment. For my friends that have very successful businesses, they have so much to lose if we dont protect homeownership. I also believe that many of our fellow REALTORS® just dont know enough about RPAC to understand the impact of their contributions. I didnt, and it wasnt until I was educated that I understood the needs of grassroots education for our government and the importance of electing or keeping folks in office that support homeownership and private property rights. I truly believe that being educated by a peer, especially who is successful in our industry, helps any active REALTOR® feel more inclined to participate at a higher level.

 Q: Peer-education is a great tool to get others involved! But what do you tell people who say they don’t invest into RPAC because they didn’t like a specific candidate or issue that their association made?

A: RPAC and the REALTOR® Party are not about a candidate or issue. They exist to ensure that REALTOR® issues, important to homeownership and our business are protected. No one in the country is ever going to agree 100% of the time with a politicians votes, or with every single issue impacting our world. However, when it comes to making sure our clients can close on a home that requires flood insurance, a first time homebuyer has access to financing, extra taxes arent passed on to our consumers and so much more, its pretty hard to tell me that you cant get on board to support the industry that keeps food on your table. We are the REALTOR® Party, not any other party.

 Q: One last question: Is there any other piece of advice you have for your fellow REALTORS®?

A: Contribute. Even small contributions are incredibly important. We all go through challenges, but without protecting our industry, the very business in which you make a living can be swept away in a heartbeat. Each of us can make an investment in our industry. Were protecting, ourselves, our families and our economy. Even if its just $30-$50 in a year, every dollar is incredibly important. It doesnt seem like much, to ensure we have a future.

 

To learn more about RPAC, visit boirealtors.com/what-is-rpac or contact Director of Government Affairs, Soren Dorius.

April 2019 Market Report

MORE INVENTORY IN ADA COUNTY HELPED MODERATE HOME PRICES IN APRIL; PLUS, WHY NEW HOMES ARE COMPARATIVELY LESS EXPENSIVE TODAY THAN IN 2007

Key Takeaways:

  • An increase in total inventory and a slight decrease in the share of new home sales last month helped hold home prices steady between March and April.
  • Comparisons to 2007 are typical when median prices go above $300,000, but in doing so, one must adjust prices for inflation.
  • Adjusting for inflation, new homes today are comparatively less expensive than in 2007 when prices were driven by speculation. Current new home prices are impacted by land, labor, and material costs, as well as the low number of “move-in ready” options,  compared to demand.

Analysis:

 The median sales price of existing homes in Ada County was at $308,450 in April 2019, up 12.2% over April 2018 but down slightly from March 2019. The median sales price for new construction was at $369,000, nearly even with last year but down 2.3% from March 2019.

This put the overall median sales price at $331,990 (for existing and new construction activity combined) an increase of 12.5% year-over-year and down just 1.0% from the previous month.

As we’ve reported previously, new construction sales have been gaining more and more of the total market share in Ada County. “Since new homes generally sell for more than existing homes, this segment continues to have a greater impact on the overall median sales price,” said Phil Mount, 2019 President of Boise Regional REALTORS®.

But while the share of new home sales remained high (36.3% of all sales in April) it was just below the share of new home sales in March, which helped moderate the new and overall median prices a bit.

In addition, an increase in total inventory helped hold prices steady month-over-month across all segments. There were 1,525 homes listed as “active” in the multiple listing service, up 22.9% year-over-year and up 12.8% from the previous month. 756 of those listings were new homes ― 269 were move-in ready, 417 were under construction, and 70 were listed as “to be built.”

When median prices go above the $300,000-mark, we’re often asked to compare our current situation with 2007, when the market peaked before the recession. However, when looking at prices that are more than a decade old, we must adjust for inflation.

For example, the median sales price of existing homes previously peaked in 2007 at $227,900. Looking at actual dollars, the median sales price in April 2019 was 35.3% higher than that previous peak. However, adjusting for inflation, that 2007 price would be equivalent to $280,885 in today’s dollars for a comparative increase of 9.8%.

The median sales price of new homes previously peaked in 2007 at $312,575. Looking at actual dollars, the median sales price in April 2019 was 18.1% higher than the 2007 peak. However, adjusting for inflation, that 2007 price would be equivalent to $385,247 in today’s dollars for a comparative decrease of 4.2%.

The theory of supply-and-demand would suggest that the adjusted price decrease for new homes since 2007 should have been caused by more inventory, but that was not the case.

At the 2007 peak, there were 1,355 new homes for sale compared to 756 in April 2019. Instead of prices being based on supply-and-demand, they were being driven by speculation.

Today, new home prices are being driven mostly by higher land, labor, and material costs, as well as a low level of move-in ready inventory,  compared to demand.

Over the next few months, we will be updating our research on affordability, population, wages, inventory, in-migration trends, and more, to provide additional context on our current housing market and how it compares to past market cycles. Please watch for our Mid-Year Market Report in early Q3-2019.

 NOTE: Adjusted prices calculated online at www.usinflationcalculator.com using Consumer Price Index (CPI) and inflation data from the U.S. Labor Department’s Bureau of Labor Statistics.


AVAILABLE INVENTORY INCREASES IN ELMORE COUNTY

In April 2019, the Months Supply of Inventory in Elmore County increased to 1.4 months — up 7.7% from the same month last year — ending 6 consecutive months of decline in inventory in the area.

The Months Supply of Inventory metric (or MSI) measures the relationship between pending sales (which measures buyer demand) and inventory (which measures supply). A balanced market— not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.

The median sales price for homes in Elmore County reached $168,500 in April 2019, an increase of 11.2% compared to the same time last year. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price to get a better idea of the overall trends.

Although inventory and home prices increased in April, there were only 28 closed sales in Elmore County, down 37.8% from April 2018.

This month’s increase in inventory is encouraging news for those looking to buy in Elmore County. Work with your REALTOR® to take advantage of the increase in options and see if something new has become available that is right for you.

 

MEDIAN HOME PRICES RISE IN GEM COUNTY

As of April 2019, the median sales price for Gem County was $211,500, an increase of 10.0% over the same period last year. We use a rolling 12-month median sales price to get a better idea of the overall trends due to the smaller number of transactions that occur in the area.

Twenty-seven homes sold in Gem County in April 2019, up 12.5% from March 2019, but down 27.0% from April of last year. This left 37 new and existing/resale homes available for sale at the end of the month, down 15.9% from a year ago.

Pending sales (or homes under contract) measures buyer demand, while inventory (or homes for sale) measures supply. The relationship between these two metrics is reported as Months Supply of Inventory (or MSI), which was at 1.2 months in April 2019.

A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.

Gem County has had persistently low existing/resale inventory for the last several years, resulting in buyer demand outpacing supply, as shown through the low MSI calculation. This, in turn, has caused home prices to rise in Gem County.

With buyer demand this high, prices will most likely continue to grow and homes will continue to sell quickly. In competitive markets such as this one, it becomes critical to work with your REALTOR® to find the right home and be prepared to make an offer as soon as you find a home you like.

 

RESOURCES:

Additional information about trends within the Boise Region, by price point, by existing and new construction, and by neighborhood, are now available here: Ada CountyElmore CountyGem County, and City Data Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.

April 2019 Ada County Market SnapshotApril 2019 Elmore County Market SnapshotApril 2019 Gem County Market Snapshot

 

Download the latest (print quality) market snapshot graphics for Ada CountyAda County Existing/ResaleAda County New ConstructionElmore County and Gem County.

# # #

This report is provided by Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, representing real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.

If you have questions about this report, please contact Annie Exline, Communications Specialist for Boise Regional REALTORS®. If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

The data reported is based primarily on the public statistics provided by the IMLS. 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).

March 2019 Market Report

 NEW CONSTRUCTION HOME SALES AND MEDIAN HOME PRICES CONTINUE TO CLIMB IN ADA COUNTY

Key Takeaways:

  •  New construction sales are gaining more and more of the market share and continuing to influence the overall median sales price.
  • In the existing home segment, the median sales price has been rising due to a persistent lack of supply, especially in the lower price points.
  • An increased share of higher-priced existing homes has contributed to the higher median sales price reported for the existing home segment.

New Construction’s Impact on the Overall Market
As reported last month, new construction sales are gaining more and more of the total market share in Ada County. Since new homes generally sell for more than existing homes, new home sales continue to have a greater impact on the overall median sales price. In February 2019, new construction sales made up 38.7% of all home sales in Ada County. In March 2019, that share increased to 39.8% resulting in an overall median sales price of $335,000, an increase of 8.4% year-over-year and a record high for Ada County.

Existing Home Prices Up Due to Lack of Lower-Priced Inventory
In the existing home segment, the median sales price has been rising due to a persistent lack of supply, especially in the lower price points. This pushed the median sales price for existing homes in Ada County to $309,900 in March 2019, an increase of 6.9% year-over-year and a record high for the county.

While we have seen gains in the number of existing homes for sale over the past few months, the additional inventory and resulting sales have primarily been in the upper-end of the market:

Change in Sales Price vs Number of Closed Sales

As with new construction’s impact on the overall market, the increased share of higher-priced existing homes has contributed to the higher median sales price reported for the existing home segment.

Where do Condo and Townhomes Fit In?
Traditionally BRR has not reported on the condo/townhome segment, due to the very small market share it represents (less than 10% of the sales and inventory). However, the smaller footprint and shared land costs provide an average list price that’s about 8-9% less than that of single-family homes. While there are not as many condos or townhomes to look at, and there may be costs beyond the purchase price, such as homeowners’ association fees, these could be an option for some buyers.

We’re seeing some shifting dynamics in our local market with the increase in new construction sales and higher-priced existing home sales. However, this doesn’t mean that there still are not affordable options for those who are looking. Now is the time to talk to your REALTOR® about your options.

 

HOME SALES AND PRICES CONTINUE TO RISE IN ELMORE COUNTY

The median sales price for homes in Elmore County reached $167,500 in March 2019, an increase of 13.9% compared to the same time last year. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price, to get a better idea of the overall trends.

This price increase was due in part to more homes being sold at overall higher price points. In March, there were 45 closed sales in Elmore County, up 15.4% from March 2018.

Additionally, buyer demand has continued to outpace supply, putting even more pressure on home prices. In March 2019, the Months Supply of Inventory in Elmore County was at just 0.8 months —  down 60.0% from the same month last year.

The Months Supply of Inventory metric (or MSI) measures the relationship between pending sales (which measures buyer demand) and inventory (which measures supply). A balanced market—not favoring buyers or sellers—is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.

We will continue to monitor how the new construction segment impacts the median sales price, but for those looking to buy or sell, talking to a REALTOR® is the best way to get information about market trends specific to your situation.

 

HOME SALES AND PRICES UP IN GEM COUNTY

In March 2019, 24 homes sold in Gem County, up 33.0% from March 2018. This left 39 new and existing/resale homes available for sale at the end of the month, down 4.9% from a year ago.

Pending sales (or homes under contract) measures buyer demand, while inventory (or homes for sale) measures supply. The relationship between these two metrics is reported as Months Supply of Inventory (or MSI), which was at 1.9 months in March 2019.

A balanced market—not favoring buyers or sellers—is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.

Gem County has had persistently low existing/resale inventory for the last several years, resulting in buyer demand outpacing supply, as shown through the low MSI calculation. This, in turn, has caused home prices to rise in Gem County.

Based on the rolling median data between March 2018 and March 2019, the median sales price for Gem County was $204,250, an increase of 6.2% over the same period last year. We use a rolling 12-month median sales price, to get a better idea of the overall trends due to the smaller number of transactions that occur in the area.

As buyer demand continues to grow, so too will the price of homes in Gem County. If you are considering a move—whether buying or selling— talk to a REALTOR® as they can help you determine what’s right for you

 

RESOURCES:

Additional information about trends within the Boise Region, by price point, by existing and new construction, and by neighborhood, are now available here: Ada CountyElmore CountyGem County, and City Data Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.

ADA Snapshot - Mar 19March 2019 Elmore County SnapshotMarch 2019 Gem County Snapshot

 

Download the latest (print quality) market snapshot graphics for Ada CountyAda County Existing/ResaleAda County New ConstructionElmore County and Gem County.

# # #

This report is provided by Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, representing real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.

If you have questions about this report, please contact Annie Exline, Communications Specialist for Boise Regional REALTORS®. If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

The data reported is based primarily on the public statistics provided by the IMLS. 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).