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.

 

59 Minute Meeting Recap: Transportation

Mathew Stoll, Executive Director at Community Planning Association of Southwest Idaho (COMPASS), addressing the crowd.

Mathew Stoll, Executive Director of Community Planning Association of Southwest Idaho (COMPASS), addressing the crowd.

Thank you to everyone who attended our fourth and final 59 Minute Meeting for 2017! We had a packed room of BRR members who listened and participated in an interesting discussion about the future of transportation in our area. Our panel of experts included Amy Revis, District Engineer Idaho Transportation Department (ITD); Mathew Stoll, Executive Director of Community Planning Association of Southwest Idaho (COMPASS); and Bruce Wong, Director of the Ada County Highway District (ACHD).

Our speakers highlighted how these organizations are working together to prepare for the transportation needs of the Boise region’s growing population, estimated to exceed one million people by 2036, while continuing to maintain current infrastructure and address safety issues.

Amy Revis, District Engineer Idaho Transportation Department (ITD), talks transportation at BRR.

Amy Revis, District Engineer Idaho Transportation Department (ITD), talks transportation at BRR.

Each speaker noted how Idaho’s leaders are not meeting funding requirements for current maintenance needs, let alone the new projects and expansions needed to support projected growth. During the Q & A portion of the meeting, they answered questions regarding safety, public transit, and ways to advocate for additional transportation funding.

REALTOR® advocacy efforts will play a crucial part in working with our elected leaders to ensure that our growth is well planned and adequately funded. Learn about the role of RPAC and how it enables us to elect leaders who understand the importance of properly funding transportation and other community needs.

Bruce Wong, Director of the Ada County Highway District (ACHD) discusses a charity event put on by ACHD.

Bruce Wong, Director of the Ada County Highway District (ACHD) discusses a charity event.

Thank you for attending, and look for information about our next 59 Minute Meeting in the coming months!

$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.

November 2017 Local Election Results

Election results are in! Of the 14 city council candidates BRR endorsed, 10 were successful in their respective races. Thanks to your RPAC investments, BRR’s endorsements went a long way in helping elect officials who value access to homeownership and private property rights.

BRR would like to recognize each of these candidates for the time, money, and energy spent on their well-run campaigns. This was a tough election year, and we were fortunate to have so many well-qualified candidates seeking the opportunity to serve our communities.

Below is a list of BRR’s endorsements with the candidates who won. For a more in-depth review of the election results, please see the Ada County Elections report.

Boise

Seat 4: TJ Thomson

Seat 6: Holli Woodings

Meridian

Seat 2: Joe Borton

Seat 4: Treg Bernt

Star

Seat 3: Michael Keyes

Seat 4: David Hershey

Eagle

Miranda Gold

Kuna

Richard Cardoza

Garden City

Elfreda Higgins and Jeff Souza

Once again, thank you to the BRR Public Policy Committee for carefully interviewing all of the candidates and identifying those who would best represent our REALTOR® industry and values.

For more information, please contact BRR’s Director of Government Affairs, Soren Dorius at 208.947.7237

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.

BRR Endorses City Council Candidates

Elections were held November 7, 2017. Read about the results here.

Boise Regional REALTORS® (BRR) is pleased to announce the following candidate endorsements for city council races throughout Ada County.

Boise

  • Seat 2: Frank Walker
  • Seat 4: TJ Thomson
  • Seat 6: Holli Woodings

Meridian

  • Seat 2: Joe Borton
  • Seat 4: Treg Bernt
  • Seat 6: Josh Cummings

Star

  • Seat 3: Michael Keyes
  • Seat 4: David Hershey

Eagle

  • Miranda Gold and Robert Koellisch

Kuna

  • Richard Cardoza and Paul Schepper

Garden City

  • Elfreda Higgins and Jeff Souza

As real estate professionals, it’s our responsibility to engage in the political process by selecting candidates and supporting issues that protect homeownership access, private property rights, and promote economic growth. BRR’s endorsement process is thoughtful and deliberate in selecting candidates who best represent our industry and homeowners. The Public Policy Committee, comprised of REALTOR® and affiliate members with diverse backgrounds and political party affiliations, interviews candidates and determines the best recommendations for election endorsements.

Elections will be held on November 7, 2017. For information on the candidates, registration, and where to vote, please visit https://adacounty.id.gov/elections/. For information requests regarding these endorsements, please contact Soren Dorius, BRR Director of Government Affairs, at 208-947-7237 or soren@boirealtors.com.

Many thanks to BRR's Public Policy Committee for interviewing the candidates and making recommendations for support. Pictured: Chelsea Hough, Soren Dorius, Phil Mount, Steve Cox, Gail Hartnett, Susan Weaver, Julie DeLorenzo, and Jessica Perreault.

Many thanks to BRR’s Public Policy Committee for interviewing the candidates and making recommendations for support. Pictured top row: Chelsea Hough, Soren Dorius, Phil Mount, Steve Cox. Bottom row: Gail Hartnett, Susan Weaver, Julie DeLorenzo, and Jessica Perreault.

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Boise Regional REALTORS® (or BRR) represents more than 4,300 real estate professionals throughout the Boise region, providing resources to help members conduct their businesses professionally, ethically, and successfully. BRR has two wholly-owned subsidiaries, the Intermountain MLS and the Boise Regional REALTORS® Foundation. Visit boirealtors.com, intermountainmls.com, and boirealtors.com/realtor-foundation/ for more information.

2017 Annual Membership Meeting Recap

Thanks to everyone who attended BRR’s Annual Membership Meeting at JUMP on September 28, 2017! In case you missed it, here’s a recap of the day…

President Katrina Wehr started the morning by welcoming members, congratulating BRR Past President Carey Farmer on being named IR REALTOR® of the Year, sharing the many successes so far this year with a video, and recognizing our CEO, Breanna Vanstrom, in honor of Association Executive Appreciation Day.

Andy Enrico, BRR’s Bylaws Committee Chair, presented the proposed Bylaws changes which were unanimously approved by the membership. These changes will go into effect on January 1, 2018.

Gail Hartnett, BRR’s Nominating and Elections Committee Chair, and Katrina Wehr announced the winners of the 2018 Director Elections, as follows…

  • 2018 Vice President — Michelle Bailey
  • 2018-2019 Treasurer — Bob Van Allen
  • 2018-2020 BRR Director — Becky Enrico-Crum
  • 2018-2020 State Director — Krista Deacon
  • 2018-2020 National Director — Gail Hartnett

Our 2018 officers and newly elected Directors will begin their terms on January 1, 2018.

Below is a video of the BRR vote on the Bylaws changes and announcing the election results:

BRR Annual Membership Meeting Election Results and BylawsThis live stream is for informational purposes only. If you are not present, you will not be able to vote.

Posted by Boise Regional Realtors on Thursday, September 28, 2017

 

The morning wrapped up with a panel discussion on “Engaging Consumers Through Emerging Technologies” featuring Dave Conroy, R&D Engineer for NAR’s Center for REALTOR® Technology & CRT Labs; Dr. Anthony Ellertson, Director of the Games, Interactive Media and Mobile Technology Program at Boise State University; moderated by Eric Jensen, REALTOR® and Vice President of the Intermountain MLS.

 

2017AMM-6

Dave Conroy spoke about the importance of smart home tech and emphasized its importance to consumers, and shared resources from CRT Labs, like guides for understanding Smart Home devices and a Smart Home Checklist to help sellers reset devices.  Check out these links to learn more:

He also offered some smart home closing gift ideas:

Dave will be at the NAR Conference in Chicago, and he encouraged anyone who was attending to tour the CRT Labs while they are there.

Dr. Ellertson explained the difference between virtual reality and augmented reality, sharing that augmented reality is what will likely become more common in our day-to-day lives. He explained that the award-winning Virtual Nursing Simulation that his department developed, saved the nursing program thousands of dollars in nursing mannequin costs, was more flexible, and found to be just as effective as traditional training methods. His presentation also touched on the potential uses for beacons, Meta glasses, and other emerging devices.

The afternoon keynote speaker was REALTOR® Leigh Brown, whose presentation on the “Seven Deadly Sins of Real Estate,” had the audience constantly laughing, all while challenging REALTORS® to higher levels of professionalism, setting priorities, and putting their clients—and families—first.

2017AMM-35

The Annual Membership Meeting also featured roundtable discussions, networking, and a  Vendor Showcase featuring 29 companies!

Event Photo Gallery

It was a great day at JUMP that would not have been possible without the support of our vendors and sponsors. Special thanks to our event sponsors:

And finally, a big thank you to our Presenting Sponsor, Pillar To Post Home Inspectors — Greg Henke, Jeb Stogdell and Mark Uecker.

PillarToPost-Henke.Stogdell.Uecker

 

IR-Logo-White-in-state-300x207

APM_Logo

 

ShowingTime logo

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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.