Ada and Canyon County Housing Inventory Down for 34 Consecutive Months

At Boise Regional REALTORS® (BRR), we feel like we’ve been talking about low inventory for months… and for good reason.

A few weeks ago, Zillow’s Chief Economist Svenja Gudell posted on Twitter: “Inventory down YoY for 25 consecutive months now. We’re just past 2-years into the #inventorycrisis.” While we never like when the term “crisis” is used to describe the housing market, the sentiment reflects the pressure that many home buyers are feeling caused by the low inventory levels, especially for existing homes.

Gudell’s comments were based on nationwide trends, so what does this look like in the Boise Region?

Based on monthly data, inventory of existing homes in both Ada and Canyon counties has been down year-over-year for 34 consecutive months, starting October 2014. Let’s break this down by inventory (supply) and pending sales (demand)…

Metrics Ada Existing Canyon Existing
Oct-14 Jul-17 % Chg Oct-14 Jul-17 % Chg
Inventory (Supply) 1,702 1,238 -27.3% 886 600 -32.3%
Pending (Demand) 628 1,078 +71.7% 307 537 +76.6%
Months Supply of Inventory 3.2 1.4 -56.3% 3.3 1.5 -54.5%

 

Inventory of existing homes in Ada County was at 1,702 in October 2014 and 1,238 in July 2017, a decrease of 27.3%. In comparison, there were 628 pending sales in October 2014 versus 1,078 in July 2017, an increase of 71.7%. Pending sales are homes under contract that should close within 30-90 days.

Looking at months supply of existing inventory — which takes the number of homes for sale divided by the average number of sales by month — there were 3.2 months in October 2014 in Ada County to 1.4 months in July 2017, a drop of 56.3%. (A balanced market—not favoring buyers or sellers—is typically between 4-6 months supply of inventory.)

In Canyon County, inventory of existing homes was at 886 in October 2014 and 600 in July 2017, a decrease of 32.3%. In comparison, there were 307 pending sales in October 2014 versus 537 in July 2017, an increase of 76.6%. That put months supply of inventory at 3.3 months in October 2014 compared to 1.5 months in June 2017, a drop of 54.5%.

How has the decrease in supply and increase in demand influenced home prices in the Boise Region? The median sales price of existing homes in Ada County increased 34.2% between October 2014 and July 2017, and increased 42.2% in Canyon County during that same period, illustrating BRR’s familiar refrain of how home prices are being driven by demand compared to supply.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the July 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 - July 17

CANYON Snapshot - July 17

 

 

 

 

 

 

 

# # #

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 4,000 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.

REALTORS® > Tech

REALTORS greater than Tech slider

Adapted from BRR’s weekly “Broker Bulletin” email series.

Did you catch the Inman article, “3 things real estate agents will always do better than tech disruptors,” written by Anthony Hitt, CEO for Engel & Völkers Americas? If not, I wanted to bring it to your attention.

The key takeaway was this: “Agents who embrace technology as a way to enhance their existing skill sets, understand how to pivot and hone their ability to deliver a superior experience to their customers will be around for a very long time.”

I want to emphasize the idea of using technology to enhance your services.

It’s very easy to see technology as a threat to our industry, but I would argue that’s it’s a threat to (or change agent for) certain tasks of the transaction (search, transaction management, etc.) and to agents who are unable or unwilling to do what Mr. Hitt suggests: pivot and hone their services.

Here are the three areas he says where REALTORS® are greater than tech:

  1. Offering a personalized white glove experience — Great agents know how to create a personalized experience for each of their clients throughout the sales process, which a website or device simply cannot offer.
  1. Understanding the emotional impact — A good agent understands the emotional elements of this process for the buyers and sellers and doesn’t treat it as a simple, formulaic transaction.
  1. Guiding buyers and sellers — Technology can use certain algorithms, follow strict parameters and return search results, but it doesn’t understand why those parameters were given, offer feedback based on experience or market knowledge, or alter search criteria.

While I don’t think you would disagree with any of these things, we never talk about them. We don’t weave these ideas into our business philosophies and practices and review them on a regular basis. Instead, we talk about “how to get more agents using the new technology we implemented,” or “how to get more listings in your pipeline.” Those things are important, but we have to get back why we’re doing what we’re doing (shout out to Simon Sinek’s TED Talk), knowing the value we bring to the transaction, and then tell that story in our marketing, through our interactions with clients, etc. — while also delivering the results.

I don’t disagree that new products and services from tech companies can feel threatening when they’re first launched (and I’m not looking at any one company in particular, nor is this meant to start a debate about any of them). And I’m certainly not going to pretend that changing technology will not affect our business or impact customer preferences and expectations. Especially when there are literally hundreds (thousands?) of tech companies out there looking to change the way real estate is experienced by consumers.

These companies are spending millions and millions of dollars to figure out how to make buying or selling a home more efficient, more streamlined, more, whatever.

But you already do that.

So, use technology to help you do it better, and keep focused on serving clients before, during, and most importantly, after the transaction. You are closer to the consumer experience than any tech company, and you can see desires change and shift in real-time. Meaning, you can more quickly pivot and hone your services than any tech company ever could.

Boise Regional REALTORS® Paint Five Boise Homes

Local real estate professionals volunteered their time and resources by participating in this year’s Neighborworks® Paint the Town™, painting the homes of deserving residents who are unable to do it themselves. If you’ve ever painted a house, you know that this isn’t an easy task. Teams schedule working times with homeowners, perform hours of prep, painting and clean up. BRR teams often go above and beyond, trimming bushes and trees, and making repairs to the home prior to painting. One homeowner commented, “This is a better paint job than if we’d hired someone to do it!”

This year, BRR had five teams participate: Lysi Bishop Real Estate and Keller Williams Realty Boise painted house #1; The Independent Broker’s Council painted house #2; Coldwell Banker Tomlinson Group painted house #3; AAD Inspection and Silvercreek Realty Group painted house #4; and BRR Young Professionals Network, Silverhawk Realty, and Templeton Real Estate painted house #5.

BRR Foundation has donated nearly $100,000 as a sponsor of Paint the Town™ since the foundation’s inception in 1995. Sponsorship funds help cover the cost of paint and materials for the event. The REALTOR® Outreach Committee (ROC), the working arm of the BRR Foundation, helps recruit volunteer teams and match teams with homeowners. If you’re interested in getting involved with ROC, BRR is currently accepting applications for 2018 committees. If you’d like to volunteer for next year’s Paint the Town™, we will share details on how to sign up in early spring 2018.

Thank you to our volunteers, and to everyone who supports the BRR Foundation. Your efforts reflect the fact that REALTOR® and affiliate members are committed to giving back to our community.

2017 Paint the Town Photo Gallery

Boise Regional REALTORS® Young Professionals Network (BRR YPN), Silverhawk Realty, and Templeton Real Estate teamed up to form one of the five teams participating in Paint the Town with Boise Regional REALTORS®. Volunteers pose with homeowners in front to nearly finished paint job.

Boise Regional REALTORS® Young Professionals Network (BRR YPN), Silverhawk Realty, and Templeton Real Estate teamed up to form one of the five teams participating in Paint the Town with Boise Regional REALTORS®. Volunteers pose with homeowners in front of the nearly finished paint job.

Coldwell Banker Tomlinson Group

Coldwell Banker Tomlinson Group was one of the five teams participating in Paint the Town with Boise Regional REALTORS®. Painters busy at work on Saturday, June 10, 2017.

Independent Brokers Council

The Independent Broker’s Council was one of the five teams participating in Paint the Town with Boise Regional REALTORS®. Volunteers in front of the house in progress.

Lysi Bishop KW with homeowners

Lysi Bishop Real Estate and Keller Williams Realty Boise House teamed up to form one of the five teams participating in Paint the Town with Boise Regional REALTORS®. Lysi Bishop Real Estate and Keller Williams Realty Boise volunteers gathered around the homeowners (centered) in front of the newly painted house.

AAD Inspection Silvercreek Realty Group

AAD Inspection and Silvercreek Realty Group teamed up to form one of the five teams participating in Paint the Town with Boise Regional REALTORS®. Volunteers putting the finishing touches on the freshly painted home.

Letter to the Editor: REALTOR® Ethics

The following letter was submitted to the Idaho Statesman on Monday, May 1, 2017.

The April 19th “Business Insider” contained a piece in which the author claims a friend told him about a real estate instructor teaching agents to “sneak” items into contracts presumably to benefit the agent.

As leaders of the largest REALTOR® associations in Idaho, we were disappointed to see an unsourced anecdote in the Statesman. This is not representative of what agents are taught, or of real estate professionals overall.

REALTORS® are guided by a Code of Ethics focused on fair dealings with clients, the public, and fellow agents. The overwhelming majority of consumers were happy with their REALTOR®, as cited in one example from the National Association of REALTORS® research: 80% of sellers surveyed would use their agent again or recommend them to others.*

Should a consumer feel something unethical occurred during a transaction, our associations can help. Consumers may file a complaint against a member of Idaho REALTORS® at idahorealtors.com or 800-621-7553. If the agent is not a REALTOR®, contact the Idaho Real Estate Commission at 208-334-3285 or realestatecommission.idaho.gov.

We are proud of the work done by our members and remind consumers a REALTOR® is their best advocate when buying or selling real estate.

— Breanna Vanstrom, CEO, Boise Regional REALTORS® and Isaac Chavez, CEO, Idaho REALTORS®

 

* “First-time Buyers, Single Women Gain Traction in NAR’s 2016 Buyer and Seller Survey,” from the National Association of REALTORS®; www.nar.realtor/news-releases/2016/10/first-time-buyers-single-women-gain-traction-in-nar-s-2016-buyer-and-seller-survey; published October 31, 2016.

April is Fair Housing Month

Every year in April, REALTORS® recognize the significance of the Fair Housing Act and reconfirm our commitment to upholding fair housing laws, and offering equal professional service to all in their search for property. Though we may focus on Fair Housing in April, it’s an important issue that deserves our attention all year long.  Do you have questions about the Fair Housing Act? Do you know how to stay in compliance with federal laws? Here are some links to Fair Housing resources.

fair-housing-poster-2017

Spring Hits Ada and Canyon County Housing Markets

As expected, warmer weather brought more buyers out in February, pushing pending sales in Ada County 25.7% higher than the previous month, with 1,303 homes going under contract. Though pending sales were up month-over-month, they were 5.5% lower in February 2017 than in February 2016 because there were fewer homes available to purchase. Speaking of inventory, it was down 16.1% in Ada County from February 2016.

But there was a bright spot on the inventory front — the number of homes for sale was up 4.1% in February 2017 over January 2017. More encouraging, this increase was caused by more existing homes coming online, up 14.0% month-over-month.

The story was similar in Canyon County, where pending sales were 30.8% higher in February 2017 versus January 2017, representing 565 homes under contract. Overall inventory was down 11.5% year-over-year, but the number of existing homes for sale was up 3.0% from January.

This uptick in spring inventory seems to be happening a month sooner than is typical, which should be welcome news to buyers. Through member feedback, we’re hearing that sellers are encouraged by the buyer traffic they’re seeing and the increase in prices.

As shared in previous reports, the area overall median sales price (existing and new construction combined) has been pushed up by the limited supply compared to buyer demand. February 2017 hit a new high median sales price in Ada County of $256,600, led by gains in new construction prices. Canyon County was just $250 shy of reaching its previous median sales price market peak, also due to new construction prices.

A recent report based on data from the Federal Housing Finance Agency (FHFA) actually notes that the Boise metro area has joined cities such as Denver, San Francisco, Nashville, and others, as being “fully recovered” from the recession as prices have surpassed previous market peaks. NAR’s Chief Economist Lawrence Yun also referred to Boise in an interview, reinforcing our market’s likelihood to see continued price appreciation.

While not as strong as new housing, the median sales price for existing homes also rose. In Ada County, the February 2017 median sales price for existing homes was at $220,900, nearly even with January 2017 but up 3.8% from February 2016. Canyon County’s median sales price for existing homes was $157,200 in February 2017, up 6.9% from February 2016 and up 3.4% over January 2017.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the February 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 - Feb 17CANYON Snapshot - Feb 17

 

 

 

 

 

 

 

 

# # #

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 4,000 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 Advocacy Update | February 2017

Advocacy Update Slider - Feb 2017

BRR Endorses Ada County School Bond/Levy Efforts

Three school districts within Ada County have bonds and/or levies they are putting before voters on March 14th. Among these endorsements are Kuna School District’s $40 million bond measure and $2.5 million supplemental levy; West Ada School District’s $160 million plant facility levy; and Boise School District’s $172.5 million bond initiative.

All of these bonds/levies will help address the rapid growth our region has experienced, ensuring our children have access to safe and modern schools. We encourage all of our members who live in these respective school districts to vote YES on March 14th. Learn more about early and absentee voting, as well as more info on these bonds and levies here.

Widen Chinden Boulevard?

The Idaho Transportation Department (ITD) is proposing some big changes to Chinden Blvd., with the possibility of investing up to $350 million in order to add more lanes and modernize intersections. If you are interested in learning more, consider attending their next open house event:

  • Thursday, March 9th, 4:00-7:00 pm at Thomas Jefferson Charter School, 1209 Adam Smith Ave., Caldwell.

The Idaho Statesman has more information about the proposal which you can learn about here.

59 Minute Meeting Success!

Thanks to the many REALTORS® who joined us for our first 59 Minute Meeting of 2017, held on February 21st at BRR. We heard from our special guests Wendy Johnson (Superintendent of the Kuna School District), Eric Exline (Chief Communication Officer for West Ada School District), and Dr. Don Coberly (Superintendent of the Boise School District). It was a great opportunity to learn more about what is going on in their school districts, as well as how the upcoming bonds and levies will help address school needs in our rapidly expanding communities. Stay tuned for information on our next 59 Minute Meeting, to be held Tuesday, May 23rd at BRR.

RPAC Lounge is returning to our REALTOR® Awards Gala

We are pleased to announce that RPAC will once again be hosting an exclusive lounge area for RPAC investors at our upcoming Gala on Friday, March 10th. For more details on this exclusive VIP lounge experience, please contact Soren Dorius at soren@boirealtors.com or call (208) 947-7237.

Fuel Your Business: Year-End Financial Housekeeping Recap

At the December Fuel Your Business Luncheon, Laura Canales with The CPA You Should Use Everyday, Nick McGhee of Idaho Central Credit Union, and Jason Melville of Hawley Troxell shared their insights into how to best prepare for tax season and tips for keeping your business and personal finances in order.  The following is a summary of the discussion in a Q&A format; the content has been edited for length and clarity.

What is the most important thing a REALTOR® or small business owner needs to do to prepare their finances for the end of the year?

Keep your records organized throughout the year.  It’s difficult to make good decisions about your business when you don’t know where you stand financially.

From a legal perspective, the beginning of the year is a great time to take care of any nagging legal issues, like making sure your business entity is formed correctly, and that your personal affairs are in order. Click here for more information from the Small Business Association on choosing your business structure.

If you’re planning to take out a business loan, talk to your accountant.  Make sure that your business has shown a profit and/or income in the last two years, otherwise it may be difficult to get a loan.

When does a REALTOR® or small business owner need to enlist the professional services of a CPA?

A couple of months before you start your business is best. A Certified Public Accountant (CPA), along with an attorney, can help you decide what is the correct legal entity for your business, specific to your situation. A CPA can also get you on track for your record keeping so you know what you’re doing going forward.

How important is it for a REALTOR® or other small business owner to have a separate business tax ID?

If you are a sole proprietor you can you use your social security number as your tax ID number, but that isn’t ideal if you are providing that number to vendors and other people you interact with.  Most people get a tax ID number just so they don’t have to use their social security number.

If you own a corporation or partnership, you are required to have a tax ID number.  It’s very easy to get one online.  You can do it yourself, or your accountant or attorney can do it.

How can a business banker help position your business for success?

Your business banker is your middleman, not the tax expert or legal expert, but they can point you in the right direction. Business bankers can be an excellent resource for referrals.

How are charitable contributions beneficial to year-end financial housekeeping?

Charitable contributions are great for community involvement, and for being recognized by potential clients/customers. If distributions from retirement accounts aren’t needed, they can be made directly to charity and they don’t have to recognize the income tax on those distributions.

In general, sole proprietorships, S corporations, and single member LLCs can’t take deductions for charitable contributions. If your business makes a charitable contribution, you won’t get a business deduction for that, those deductions flow into your personal return.  If you have an S corporation, you can’t make personal payments with corporate money.

Be careful with what you’re doing with those types of things, if you have questions defer to your accountant or tax attorney.

As people are planning for 2017, what are some tips for budgeting with an inconsistent income?

When times are good, save your money, because you know there will be a drop in income.  Write a budget, and then actually use it!

Know what your monthly expenses are, and understand the differences between your needs vs. wants. Know what your minimum expenses are, and make sure your income covers those expenses for the year.  Keep track of your utility bills, your grocery costs etc. Think about ways you can save money. Most financial institutions offer budgeting tools, take advantage of these.

Do I need to keep all my receipts? For how long?

Keep receipts for things that might affect a future tax return (i.e. the purchase of assets your business, changes you make to your home, etc.) for the current year and three years back.  If you don’t have a receipt, a bank statement might work. The IRS requires that expenses have a date, an amount, and what that expense is for. If the IRS finds an inconsistency during the last three years, they can go back another three years.  If you don’t have records, the IRS can make decisions about what your business expenses were. In general, keep receipts for three years.  If it’s payroll related, keep it for seven years.

For more information on what records you should keep, see this article from the IRS.

E-statements are a great thing to keep with your records.  Generally, the bank will save them for seven years.

There is talk of changes to the tax code in 2017. Does that change any of your end-of-the-year strategies?

Tax code changes every year.  We can speculate, but none of us can really guess what will happen. Even if there is change, it won’t happen immediately.  If anything happens with the Affordable Care Act, it will likely be a repeal of the fines for not having health insurance.

Less than 1% of the population has to pay estate tax as the law currently stands.  President-Elect Trump is suggesting a repeal of the estate tax but it won’t affect most Americans.

For more information on estate tax, see this article from the IRS.

At what point, do I become high risk for an IRS Audit?

Individuals rarely get randomly audited.  Individuals who make $1,000,000 adjusted gross income and corporations are at a slightly higher risk.  You may up your risk for an audit if you have a lot of miscellaneous expenses and inconsistencies in reporting expenses. If you’re statistically out-of-whack with your peers, you might be more likely to be audited.

How should I select bookkeeping software?

Use commercial bookkeeping software that you’re comfortable with and you’ll use.  You can get P&L and balance sheet reports at a push of a button so you can do some analysis.

What advice would you have for someone just starting out?

An ounce of prevention is worth a pound of cure.  Sit down with your accountant, attorney, and banker and make a plan, get your questions answered. Ask your attorney to review your employment agreement and contracts.

Separate your personal and business accounts, this will make doing your taxes easier.

Have a retirement plan other than, “I’m going to sell the business.”

Ask your business team for help. Work with your accountant, attorney, banker, financial advisor, insurance agent, these people want to help you.  Have those names and phone numbers in your phone, call them up and discuss your plans.  They will all help you grow your business.

How do you get business financing?

To get a business loan, financial institutions look at your past.  They are looking for two years of taxes that show a profit, personal financial statements, P&L for the current year.  Your assets need to be worth at a minimum of 20% of the loan to be approved. Underwriters see in black and white.  Financial institutions must show a way to pay for the loan before approving it, so if the loan fails, it can still get paid.

What is the difference between a CPA and an accountant?

A CPA is a licensed accountant that can audit a financial statement, review financial statements, represent clients before the IRS without clients being there. Licensing requires essentially a master’s degree, working under a licensed CPA for at least two years, and passing a grueling exam.

What are some good apps for business?

Find a good mileage app to record your driving.  Banking apps are great. Do be careful though what financial apps you use, they may not all be secure.

How much can you contribute to IRAs in 2016? 

Per the IRS website, “for 2015, 2016, and 2017, your total contributions to all of your traditional and Roth IRAs cannot be more than: $5,500 ($6,500 if you’re age 50 or older), or your taxable compensation for the year, if your compensation was less than this dollar limit.” Read more about limits and IRA rules here.

What should you do first if facing a tax audit? 

The IRS must contact you in writing FIRST.  Don’t respond to a phone call or email from the IRS unless you have had communication with them before.

Call a CPA or tax attorney to help you, and let them know if you’ve been audited before.  Have as many records available as humanly possible. The IRS will ask for specific line items from Schedule C.  The items that often get their attention are the meal/entertainment expenses, telephone expense, auto expenses and anything from the “other line”.

On the other hand, don’t ignore letters from the IRS. Once you’re past the audit phase (which is your opportunity to dispute) and you are in collections, your accountant and/or attorney can’t perform a miracle.  Your options get smaller and smaller the longer you put off communications from the IRS.

Don’t be afraid of an audit if you have the right records. If you are missing a few things, there are ways to find a record of it.

How do I switch from yearly to quarterly taxes?

This is very easy, your tax preparer can provide you with estimates and coupons you can send in each quarter.  The first quarterly payment is due April 15, 2017.  Don’t get behind, set money aside for taxes in your budget.

Set aside a minimum of 30%: 15% for self-employment tax, 10% for federal taxes, and 5% for state taxes. Your tax preparer can help you with estimates.

Where should I put the money I’m saving for taxes? Can I earn a return?

You could put it in a money market and see 0.2-0.4% return, but pay attention to the minimums for each account.  You don’t want to pay more in fees than you make in interest. You could time the purchase of Certificates of Deposits (CDs) to mature as your taxes are due.

What is one thing I’ll forget to bring to my accountant to write off for 2016?

Most people forget to keep their mileage log throughout the year.  You can recreate your mileage log with your appointment calendar and Google maps.  However, don’t try to rebuild it once you’re in an audit situation.

To calculate your telephone expense, choose three random months of the year, and calculate the ratio of business calls to personal calls from a detailed phone bill.  You can use that ratio for the rest of year.  Update this ratio as your business changes.

 

NOTE: Boise Regional REALTORS® and its affiliates do not provide tax, legal, accounting or financial advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, accounting or financial advice. You should consult your own tax, legal, accounting and financial advisors about your specific situation.  

Ada County Inventory of Homes for Sale Near Historic Low

The low inventory of homes for sale in Ada County has driven home prices for months now.  In November 2016, there were only 1,730 homes for sale in Ada County, just 66 more than the historic low point of 1,664 in January 2013. Compared to a year ago, inventory in November was down 9.8%, but between October 2016 and November 2016, it dropped 21.3%, with 220 fewer homes for sale.

The lack of existing home inventory pulled  new construction inventory  down  0.2% from last year. There were only 868 existing homes for sale in November 2016, a 17.7% drop from last year at this time, and 22.2% lower than in October 2016.

“This time of year, we hear from homeowners who want to sell but think they should wait until spring,” said Carey Farmer, 2016 President of Boise Regional REALTORS® and Associate Broker with Group One Sotheby’s International Realty. “With a market as active as ours has been year-round, there is no right or wrong time to sell your home.”

One of the metrics used to determine demand vs. supply is Months Supply of Inventory. A balanced market—not favoring buyers or sellers—is typically between 4-6 months of supply. In November 2016, the Months Supply of Inventory for Ada County was only 2 months and less than 1 month for existing homes priced below $250,000. “We need existing inventory in all price points, but especially for homes below the $250,000-price point,” said Farmer.

Canyon County’s inventory was down compared to last year, as well, but not to historic levels. In November 2016, there were 903 homes for sale in Canyon County, down 5.3% from November 2015 and 8.0% less than October 2016. Existing home inventory was down 22.7% from last year, but new construction in Canyon County was actually up 23.9%. Months Supply of Inventory for Canyon County was at 2.6 months in November 2016, when looking at the market as a whole. It was at 1.6 months for existing homes and at 7.6 for new construction.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the November 2016 Market Report. This includes an explanation of the metrics and notes on data sources and methodology.

Download the market snapshot graphics for Ada County and Canyon County:

ada-snapshot-november canyon-snapshot-november

# # #

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 4,000 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.