Could Now Be the Best Time This Year to Buy a Home in Ada County?

In this month’s market report, we look at the question posed in a recent realtor.com article: “Is This September the Perfect Month to Buy a Home?”

While that article looked at national trends, based on the latest statistics from the Ada County Association of REALTORS®, the answer for our market seems to be “yes.”

Following the article’s lead, let’s take a closer look at local supply and demand, based on the most recent numbers through August 2015:

Metrics

Aug 2014

Aug 2015

YOY % Chg

Inventory

2,962

2,504

-15.5%

Pending Sales

911

1,279

40.4%

Median Sales Price

$218,990

$229,500

4.8%

Months Supply

3.8

2.7

-28.9%

 

There were 2,504 single-family homes for sale in Ada County as of August 2015, down 15.5 percent compared to August of 2014. But while inventory was down, there were 1,279 pending sales in August 2015, up 40.4 percent compared to the same time last year.

“This decrease in supply and increase in demand was the reason that many buyers and sellers found themselves in multiple offer situations over the Summer,” noted Brenda Kolsen, 2015 President of the Ada County Association of REALTORS®.

Further evidence of buyer demand could be found in the Months Supply metric which was at 2.7 months in August 2015, down 28.9 percent year-over-year. (A balanced market—not favoring buyers or sellers—is typically between 4-6 months of supply.)

This mix also helped push the Median Sales Price up to $229,500 in August 2015, 4.8 percent higher than it was in August 2014—good news for sellers still looking to move yet this year.

While this is the time of year that purchase activity tends to dip—both locally and nationally—it’s ideal for those buyers still hunting for a home. Brenda Kolsen explains: “Buyers shopping now aren’t competing with as many buyers as they would have been in the Spring and Summer. And this year is especially favorable, as mortgage rates continue to stay near historic lows.”

Finally, despite the noted lack of inventory compared to last year, the number of homes for sale has held steady since our seasonal peak of 2,512 in June 2015, giving buyers plenty of homes to choose from—particularly for those looking at new construction or at homes priced $400,000 and above.

So to answer the question, “Is This September the Perfect Month to Buy a Home?” for buyers in Ada County, the answer seems to be yes, and we expect favorable conditions to continue through the Fall.

 

Here’s how the rest of August 2015 shaped up for single-family homes in Ada County:

  • Inventory was at 2,504, down 15.5% year-over-year (not tracked YTD)
  • Months of Inventory was at 2.7 months, down 28.9% year-over-year (not tracked YTD)
  • Days on Market was at 45 days, down 15.1% year-over-year, down 7.3% year-to-date
  • Pending Sales were at 1,279, up 40.4% year-over-year (number not tracked YTD)
  • Closed Sales were at 837, up 12.4% year-over-year, and up 18.6% year-to-date
  • Median Sales Price was at $229,500, up 4.8% year-over-year, and up 7.6% year-to-date

Monthly Housing Snapshot for August 2015:

Market Snapshot_August

 

 

 

 

 

 

 

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The Ada County Association of REALTORS® represents nearly 3,500 real estate professionals throughout the Boise region. For more information about the benefits of working with a REALTOR® and to search for a REALTOR® by name, language, or professional designation, visit http://myacar.com/find-a-realtor.

NOTE: The information in this market report is based on a variety of sources, but primarily on the public statistics provided by the Intermountain MLS (IMLS), a subsidiary of the Ada County Association of REALTORS®, available here: http://publicstats.intermountainmls.com/static/Reports/Ada/2015/August-2015-Ada.pdf. 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 Ada County during the specified time period. The IMLS provides these statistics for purposes of general market analysis, but makes no representations as to the past or future appreciation or depreciation of property values. (To reduce the error, only data falling within 3 standard deviations from the mean has been included in the report. Existing and new construction statistics are calculated independently and may not sum to the total number of homes sold.) Changes to methodology: Effective 3/1/2007, ‘days on market’ refers to the number of days that transpire between the listing date and the date the property goes into pending status. Effective 4/1/2011, standard deviation is modified to reflect the difference between the asking and sold prices as a percentage of the asking price.

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