Which Price Points are Selling Best for Ada County Homes?

Conventional wisdom says home buyers aren’t shopping this time of year. But as the weather has stayed warmer longer, and our local economy continues to be strong, buyers are still on the hunt. Closed sales in September 2015 were up 20.6% year-over-year, and up 18.9% year-to-date compared to this same time last year.

In fact our last market report explored why this fall may be the best time to buy a home, so far this year. Now that we’re a few weeks into the fall market, this month’s market report looks at the listing and sale trends within various price points.

Brenda Kolsen, President of the Ada County Association of REALTORS®, notes that “understanding activity within price points can gauge potential demand, which is helpful for homeowners who may be considering listing their home yet this year.”

Sep 2015 Table Graphic

 

So what do these numbers tell us?

Homes priced $300,000 and above have had impressive year-over-year increases in closed sales, and those priced $400,000 and above have seen modest growth in inventory. More sales in these higher price points is one reason that the median sales price continues to rise—up 13.5% across all price points compared to September 2014, and up 8.1% year-to-date.

However, inventory is way down for homes priced $250,000 and below, which is the typical price point for first-time home buyers. With a lack of homes to choose from, some first-time buyers may reluctantly choose to delay their home search, and continue to rent or live with family or friends. Without first-time buyers, move-up buyers could end up staying in their current homes longer than they’d like.

Kolsen says that “if you have a home in this price point, and have considered selling, talk to a REALTOR® now. I hear from so many agents who are hearing from homeowners that don’t want to sell and then not be able to find something themselves. But a REALTOR® will help you understand where you stand and what options you have—especially if you’re looking to purchase in a higher price point.”

Overall, Ada County continues to enjoy a strong real estate market. Here are the trends for September 2015, with all price points combined, for single-family homes in Ada County:

  • Closed Sales were at 813, up 20.6% year-over-year, and up 18.9% year-to-date
  • Median Sales Price was at $232,000, up 13.5% year-over-year, and up 8.1% year-to-date
  • Days on Market was at 46 days, down 13.2% year-over-year, down 7.4% year-to-date
  • Pending Sales were at 1,238, up 33.1% year-over-year (not tracked YTD)
  • Inventory was at 2,410, down 15.6% year-over-year (not tracked YTD)
  • Months of Inventory was at 2.7 months, down 30.8% year-over-year (not tracked YTD)

 

Data Table and Housing Snapshot for September 2015:

September 2015 Stats

Table Notes: “YOY % Chg” stands for year-over-year percent change compared to September 2014. “Share” is the share of inventory or sales for each price point compared to the total. When this data was pulled there were no sales reported to the IntermountainMLS at $1 million+ for Sep 2015, or at $700,000-999,999 for Sep 2014.

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The Ada County Association of REALTORS® (ACAR) represents nearly 3,500 real estate professionals throughout the Boise region. For more information about the benefits of working with a REALTOR® and to search for a REALTOR® by name, language, or professional designation, visit myacar.com/find-a-realtor.

NOTE: The information in this market report is based on a variety of sources, but primarily on the public statistics provided by the Intermountain MLS (IMLS), a subsidiary of ACAR, available here: publicstats.intermountainmls.com/static/Reports/Ada/2015/September-2015-Ada.pdf. 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 Ada County during the specified time period. The IMLS provides these statistics for purposes of general market analysis, but makes no representations as to the past or future appreciation or depreciation of property values. (To reduce the error, only data falling within 3 standard deviations from the mean has been included in the report. Existing and new construction statistics are calculated independently and may not sum to the total number of homes sold.) Changes to methodology: Effective 3/1/2007, ‘days on market’ refers to the number of days that transpire between the listing date and the date the property goes into pending status. Effective 4/1/2011, standard deviation is modified to reflect the difference between the asking and sold prices as a percentage of the asking price.