A year ago, we looked at the question posed by REALTOR.com about whether or not September was the perfect month to buy a home. That article looked at national trends, but based on local statistics, the answer for our market was “yes,” and that seems to be the case once again this year.
While fall is typically the time of year when purchase activity tends to dip—both locally and nationally—it’s ideal for those buyers still hunting for a home. Carey Farmer, 2016 President of Boise Regional REALTORS® and broker associate with Group One Sotheby’s International Realty, explains: “Home buyers are not competing with as many people as they were in the spring and summer. So while inventory overall remains low compared to last year, fewer buyers in the market means less chance of getting into a multiple offer situation.”
Case in point for Ada County real estate: Pending sales remained strong compared to last year, up 18.1% versus August 2015, but were down 7.8% from July 2016. Inventory, however, was down 10.0% compared to August 2015, but actually grew 2.6% from July 2016.
Some buyers may be wary of how high prices have reached—up 10.0% from last year to $253,000 as of August 2016 for Ada County—but as interest rates stay near historic lows and employment numbers continue to be strong, affordability in our region remains favorable; especially compared to higher-priced markets nearby.
“The best advice I can give to any prospective buyer is to do your homework and find trusted partners,” said Farmer. “Work with a lender to determine what you can comfortably afford based on your down payment, and options for getting the best possible interest rate. Also, find a REALTOR® to guide you through the process, they will help you prepare strong offers and negotiate your best deal—which may go beyond price, and include seller-paid closing costs, repairs to the home, or favorable move-in dates.”
What does all this mean for home sellers? They’re still in a great spot. While the increased median sales price may make some buyers pause, it’s welcome news for sellers. In general, prices are rising due to restricted supply. In August 2016, there was 1.8 months of existing homes for sale, up slightly from July, but 18.2% behind August 2015. A balanced market—not favoring buyers or sellers—is typically between 4-6 months of supply.
Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the August 2016 Market Report. This report includes an explanation of the metrics and notes on data sources and methodology.
Download the market snapshot graphics for Ada County and Canyon County:
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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 3,800 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.
