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.

 

A Look Back at 2017

2017 was a great year for Boise Regional REALTORS®! We’d like to take a moment to highlight just a few of the association’s accomplishments in the past year.

In anticipation of the new year, we’d like to raise a toast to you, the REALTOR®, for your excellent service to clients, advocacy efforts, and volunteer hours that continually show our community that the value of a REALTOR® goes well beyond a smooth transaction. Thank you for your membership and involvement! Wishing all of our members happiness, health, and business success in 2018.

Boise Regional REALTORS® Paint the Town Team Wins Award

The Lysi Bishop Real Estate and Keller Williams Realty Boise BRR Paint the Town team was recognized by NeighborWorks® with the 2017 “Best Paint Job” award for their outstanding work painting a home on Boise’s Bench this spring.

Best Paint Job 2017-1 web

Katrina Wehr, 2017 BRR President, Keller Williams Realty Boise; Chris Hansen, Lysi Bishop Real Estate; Brandi Holaday, Keller Williams Realty Boise; Liz Warner, Lysi Bishop Real Estate; John Van Der Giessen, Lysi Bishop Real Estate.

Best Paint Job 2017-2 - web

 

House 1 before after

A look at the house with the “best paint job,” before and after.

Boise Regional REALTORS® Name Katrina Wehr as 2017 President

katrina_wehr

2017 BRR President Katrina Wehr

Katrina Wehr, managing broker at Keller Williams Realty Boise, was named 2017 President of the Boise Regional REALTORS® (BRR) during the association’s annual installation ceremony, held December 16th at the Boise Depot.

Wehr had this to say about her new role, “2017 is going to be an exceptional year for Boise Regional REALTORS® as we continue our mission of providing members with resources for conducting their businesses successfully, ethically, and professionally. My challenge to the members of BRR, the Board, and myself is to expect more of ourselves in 2017 than we accomplished in 2016 — success is never found in mediocracy. Here are a few of my goals… First, inspire BRR’s leadership and members to double their efforts in advocating for private property rights and issues important to our industry. Second, focus on promoting the value of REALTORS® to the public. And third, encourage REALTORS® to utilize the wealth of information at their disposal, to better understand the national and local market trends, and abide by a strict Code of Ethics. I look forward to achieving these goals and serving the members of BRR in 2017!”

“Katrina has a tremendous commitment to professionalism and integrity in all aspects of her career and volunteer work,” said Breanna Vanstrom, BRR’s Chief Executive Officer. “And her grasp of our industry’s issues and opportunities will allow BRR to proactively identify and address the needs of local REALTORS®, which in turn, benefits consumers who are looking to own, buy, or sell real estate in the Boise region.”

2017-installation-program-imageOther association leaders sworn in during the event included 2017 President-Elect Gary Salisbury of Red Barn Real Estate, 2017 Vice President Phil Mount of Front Street Brokers, Treasurer Danielle Cullip of Silverhawk Realty, Immediate Past President and National Director Carey Farmer of Group One Sotheby’s International Realty, four new Directors Bob Hurtt of ERA West Wind Realty, Debbi Myers of Front Street Brokers, Carolyn Sinnard of Happy Dog Realty, Ed Sperry of Equity Idaho Real Estate, and, and three new State Directors Michelle Bailey of Keller Williams Realty Boise, Jared Cozby of Front Street Brokers, and Gail Hartnett of Keller Williams Realty Boise.

They will work alongside BRR’s continuing Directors Krista Deacon of Silvercreek Realty Group, Bob Van Allen of Coldwell Banker Tomlinson Group, and Jeffrey Wills of Amherst Madison Legacy, and continuing State Directors Becky Enrico-Crum of Andy Enrico & Company, Shirley Koch of Coldwell Banker Tomlinson Group, Carolyn Sinnard of Happy Dog Realty, Susan Weaver of Group One Real Estate, and Greg Winther of Silvercreek Realty Group.

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