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.

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!

We are Grateful!

Every day in November leading up to Thanksgiving, BRR shared something that we’re grateful for. Thank YOU for making BRR great!

Compiled graphic

1. We are grateful for our amazing REALTOR® members!
2. We are grateful for our incredible Affiliate members!
3. We are grateful for the BRR Foundation and the good work they do We are grateful for the community!
4. We are grateful for our members who advocate on behalf of private property rights!
5. We are grateful for those who participate in service projects, like Paint the Town!
6. We are grateful for our talented and qualified instructors that teach at BRR!
7. We are grateful for our politically active members who ensure that REALTORS® have a voice!
8. We are grateful for the Code of Ethics and professional standards!
9. We are grateful for our annual sponsors who make so much of what happens at BRR possible!
10. We are grateful for those who invest in RPAC and protect access to homeownership!
11. We are grateful for the opportunity to serve our community by helping with Rake Up Boise!
12. We are grateful for members who find great deals at the BRR REALTOR® Store!
13. We are grateful for real estate professionals who work together in the best interest of the public.
14. We are grateful for our event sponsors, who make great events like the REALTOR® Awards Gala possible!
15. We are grateful for the IMLS and the valuable tools they provide members!
16. We are grateful for our members who financially support the BRR Foundation, making grants to deserving, local non-profits possible!
17. We are grateful for BRR YPN and the fun events they plan We are grateful for members all year round! 
18. We are grateful for our members who volunteer in the community!
19. We are grateful for our members who earn CE at BRR!
20. We are grateful for our committees and the many ways they serve members!
21. We are grateful for the new friendships We are grateful forged in BRR committees and leadership!
22. We are grateful for coffee… and the fact it’s free at BRR!
23. We are grateful for the opportunity to do business in such a great community!
24. Our President and Directors share what they are grateful for.

NAR Conference Report — November 2017

Experiences and highlights from the REALTORS® Conference & Expo in Chicago ranged from BRR President Katrina Wehr graduating from NAR’s Leadership Academy, to BRR Director of Government Affairs Soren Dorius presenting to two national committees, not to mention NAR Director Carey Farmer being recognized as Idaho REALTOR® of the year, committee work, roundtables, educational sessions, and the NAR board meeting. BRR attendees had much to share and even more to bring back to our association.

Notes, session takeaways, and ideas from BRR attendees:

NAR Director Carey Farmer

  • Encourage your clients to register with realtor, a platform for current and prospective homeowners to voice their opinion on NAR policy issues, similar to the REALTOR® Action Center for NAR members.
  • Speaking of the REALTOR® Action Center, please encourage five colleagues to text “Realtor” or “Action” to 30466, to download the app and respond to the current (and future!) calls for action quickly and easily.
  • Save the date for upcoming NAR Conferences… 2018 Legislative Meetings & Expo — May 14-19 in Washington, D.C., and 2018 REALTORS® Conference — November 2-5 in Boston!

 BRR President Katrina Wehr

  • Leadership Academy — I was pleased to participate in the 2017 NARLA class, and a great opportunity to learn about the inner workings of NAR and build lasting relationships with my classmates. I’m sure I’ll gain personal and professional benefits from that for years to come! Kit Fitzgerald is the chair in 2018 and it will be the first year of their partnership with REALTOR® University. Applications for 2018 are now closed but here’s the link if you’re interested in the future: realtor/programs/leadership-academy.
  • The Hub — For those serving on NAR committees, communication will now run through “The Hub.” From their website: “It’s a private, secure location where committee members can network and collaborate with each other year-round and have anytime access to those discussions via a computer or mobile device.”

BRR President-Elect Gary Salisbury

  • Large Board Forum — Two major topics were “coming soon” rules and professionalism. On the first topic, many boards were unsure how to approach the coming soon issue and look to MLSs like ours as an example, but may encourage NAR to create guidance or policy for consistency. Regarding professionalism, the consensus was that it’s the broker or team leader’s responsibility.
  • Charitable Foundation Idea Exchange — There were some productive discussions around the purpose of foundations, grant applications, fundraising, events and ideas for communicating the value year-round.
  • On a personal note, a very stirring moment for me was when, James Cornelison, who sings for the Chicago Blackhawks hockey team lead us in the Star-Spangled Banner at the general session. Very powerful!

BRR Vice President Phil Mount

  • The roundtable discussions I attended noted a lot of problems similar sized associations have that simply are not issues for us. Lots of associations are in highly competitive markets and can’t do much to improve services and are having trouble with CORE standards, or are dealing with mergers of equally sized boards.
  • Professional standards is of concern to most everyone. One association now has a two day long new agent orientation!  (Content includes ethics and mandated classes.)  Some associations have fairly hefty fines and onerous reviews of even relatively minor infractions.  And in Ontario, Canada the process for getting licensed takes 6 months and lots of money, including a $2,000 member initiation fee to join the association. (As a result, they have far fewer licensed agents.)
  • I was surprised to see some local associations have a Leadership Academy for their Board members and committee Chairs & Vice Chairs. One is 13 weeks long, meeting every other week and includes media training from a local TV Anchor, and with Fire Departments, Police Departments and City council & highway district meetings. (Similar to the Leadership Boise program.) I think we could leverage some of this without a formal structure.
  • Advocacy will become a growing part of NAR, with proposed dues increases to fund expanded grants and initiatives. So great to see BRR as a model for how that gets done, and recognized for our efforts.
  • After listening to Lawrence Yun, I am cautiously optimistic about the next year. The outcome of the tax bill will certainly have an impact, but household formation is increasing and population is growing. Demand is there, we just need to ensure affordability is maintained. This is where advocacy becomes such an essential part of what we do going forward.

BRR Chief Executive Officer Breanna Vanstrom

  • Eight (8) BRR members were approved for NAR Emeritus status, recognizing 40 years of continuous membership! Those members will be announced and recognized in early 2018.
  • As a member of the Membership Policy and Board Jurisdiction Committee, we recommended that the Board approve a change in the bylaws approval process to a compliance certification process. (The Board did approve this for 2018.) This process will also reduce the number of required items that each association must adopt, so BRR’s Bylaws Committee will review that next year. Some of the elements that have been adopted may be moved to a new policy manual.
  • As a member of the Association Executive Young Professionals Network Advisory Board (AE YPN), we discussed career development resources to share with other AEs, especially those that cannot attend national meetings. We also discussed partnerships with the American Society of Association Executives (ASAE) and the Society for Human Resource Management (SHRM). I will serve as Vice Chair in 2018.
  • As Vice Chair of the Staff Specialist Job Description Work Group, we compiled sample job descriptions to help local and state associations identify responsibilities for nearly 32 positions. These will be uploaded to the REALTOR® Association Resource Exchange (RARE) for AEs to access.

 BRR Director of Events and Community Engagement Shari Fernandez

COMMUNICATIONS

  • From the Consumer Committee: The NAR AdCenter is up and running – members can access the information directly. We will be adding AdCenter to our Content Corner as a resource to members for use in their social media and marketing. We will also work to add some information about how to access the content and highlighting it as a resource.
  • Communication Directors Networking Session is a great resource for staff! Some tips and tools taken away from the meeting include: animation tools, Instagram campaigns, CFA tips, and Fair Housing tools.

FOUNDATION

  • The Minneapolis Association is working to see if they can get a charitable giving module added to RAMCO to be able to track donors and giving. As a RAMCO user we would benefit from this as well.
  • As we grow the Foundation, we need to develop a gift acceptance policy – other foundations have received land donations and other non-monetary items.
  • We can better utilize Idaho Gives Day (May) and our Foundation Engagement Month (Aug or Sep) to increase awareness of matching gifts and volunteer service.

BRR Director of Government Affairs Soren Dorius

  • My first takeaway is the impact we can have on fellow REALTOR® associations (and impact they can have on us) through sharing experiences and collaborating on successful ideas and events. Being asked to present in front of the Smart Growth Advisory Committee, as well as the Issues Mobilization Support Committee, was an incredible opportunity to highlight the great things we are doing at BRR. I was able to share our unique approach to advocacy through the use of REALTOR® Party grants, as well as explain our overall philosophy of putting our money where our mouth is and investing into our communities. This message resonated with fellow REALTORS® from boards all over the country, and allowed us to make an impact. Likewise, I learned a lot about other cool projects other associations have conducted.
  • “The Future of the REALTOR® Party” presidential advisory group (PAG) announced their recommendation for NAR to spend an additional $25 per NAR member per year, that will go directly into strengthening REALTOR® Party tools and resources. If NAR doesn’t find the funds elsewhere, they could look to an increase in membership dues. This is all just a recommendation for now, and the number changes may still occur. They have just asked that we start the conversation about doing this, since there is such a high (and fast growing) demand for REALTOR® Party grants throughout the country. As your GAD, I have found tremendous value in the use of these grants, having received over $76,000 in 2017 alone. I am very intrigued by the idea of strengthening these tools, and look forward to seeing more details in the coming months.

BRR Director of Education Angela Gibson

  • Great ideas from panel discussions to include in BRR professionalism segments and/or panels for new(er) members — How to show a house/open house; Tips for working with Affiliates, Agents, and Clients; Better explain the difference between a Licensed Agent and a REALTOR®; and, How to proper fill out Contracts and Forms.
  • Ways for improved broker engagement or to add to weekly Broker Bulletins — (a) Required training that each Broker must take once every two years that follows NAR bi-annual ethics requirement; (b) Brokers will spend the day at BRR for free or very low cost. The day will start with association update, followed by Ethics course a break for lunch. After lunch there is a broker class, either from NAR or one already approved for CE; and, (c) Roundtables about, What can BRR do for you? Your brokerage? Your new members? Trends/issues you’re dealing with? (Similar to the IR Broker Summits, or maybe in collaboration with them.)

Looking for more information? Below are conference resources provided by NAR for reference and/or download:

Wondering what’s been happening with the National Association of REALTORS® in 2017? This video provides a short overview.

 

Boise Regional REALTORS® Foundation Grants $30,000 to Ada County Non-Profits

The Boise Regional REALTORS® Foundation, the 501(c)(3) charitable arm of the Boise Regional REALTORS® (BRR) awarded thirteen Ada County nonprofit organizations with grants totaling $30,000 through its annual competitive grant cycle.

Funds for grants are raised throughout the year by members of BRR. The two largest fundraisers include the Give-Back Charity Golf Tournament and an annual online auction.

The mission of the BRR Foundation is to improve the quality of life in the Boise region through housing-related projects and grants. Since its inception in 1995, the BRR Foundation has provided over $1.7 million in grants to qualifying non-profit organizations throughout Ada County.

“Through BRR Foundation, real estate professionals are giving back where they live, work and play,” said Cyndi Elliot, Foundation President and REALTOR® with Group One Sotheby’s International Realty. “We are thrilled to have the opportunity to make an impact in our community by supporting these outstanding organizations.”

The 2017 grant recipients are:

Boise Firefighters Local 149 Burnout Fund  ̶  $1,300 to provide fire victims with immediate resources for food, shelter and clothing needs.

Boise Firefighters Local 149 Burnout Fund

Boise Firefighters Local 149 Burnout Fund

 

Boise Rescue Mission/City Light Home for Women & Children  ̶  $2,500 to provide program support for the City Life Home for Women & Children; including the Emergency Services Program, New Life Program, Transitional Housing Program and Children’s Program.

Boise Rescue Mission/City Light Home for Women & Children

Boise Rescue Mission/City Light Home for Women & Children

 

Boise Valley Habitat for Humanity   ̶  $2,000 to assist with construction costs for affordable homes at 46th & Adams in Garden City, Idaho.

Boise Valley Habitat for Humanity

Boise Valley Habitat for Humanity

 

CATCH, Inc. (Charitable Assistance to Community’s Homeless)  ̶   $3,000 to assist families transitioning from homeless shelters into their own homes.

CATCH, Inc. (Charitable Assistance to Community’s Homeless)

CATCH, Inc. (Charitable Assistance to Community’s Homeless)

 

Giraffe Laugh Early Learning Centers   ̶  $2,000 to fund scholarships for children who homeless, or at risk of becoming homeless.

Giraffe Laugh Early Learning Centers

Giraffe Laugh Early Learning Centers

 

Good Samaritan League   ̶   $3,000 to remove a large tree on the State Street property.

Good Samaritan League

Good Samaritan League

 

Jesse Tree   ̶   $2,500 to provide rental assistance services in Ada County.

Jesse Tree

Jesse Tree

 

LEAP Charities, Inc.    ̶   $2,500 to help purchase five condominiums for use as refugee transitional housing.

LEAP Charities, Inc.

LEAP Charities, Inc.

 

Life’s Kitchen   ̶   $3,000 to nutritious meals at the Interfaith Sanctuary shelter.

Life’s Kitchen

Life’s Kitchen

 

NeighborWorks   ̶   $2,500 to help fund the Paint the Town program.

NeighborWorks

NeighborWorks

 

The Salvation Army   ̶   $2,000 to support the Finally Home “transition in place” program.

The Salvation Army

The Salvation Army

 

Women’s and Children’s Alliance   ̶   $2,500 to support emergency and transitional shelters for victims fleeing domestic and/or sexual violence.

Women’s and Children’s Alliance

Women’s and Children’s Alliance

 

West Ada School District   ̶   $1,200 to support the High School + Homeless = Success program which provides a small monthly housing stipend for unaccompanied homeless youth, ages 18-21.

West Ada School District

West Ada School District

 

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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.

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.

Member Spotlight: Krista Deacon

Krista Deacon_resizedKrista Deacon gets the concept of servant leadership. When I was a newer broker and the office was growing quickly, Krista took some time to help me figure out what I needed to do to keep from imploding. When it comes to problem-solving, Krista always approaches the issue with the attitude of, “how can we solve this problem in a way that works for everybody?” She is the consummate ‘quiet professional.'”

— Ed Sperry, BRR Director and Designated Broker for Equity Northwest Real Estate