New Market Reports Show Strong Start for Housing in 2016

Boise Regional REALTORS® (BRR) is kicking off the year with new market reports that provide a more detailed view of the region’s housing market. Starting with January 2016 data, we will dig deeper into trends happening within price points, between existing homes and new construction, and highlight sales and price trends by city, while continuing to report county-level trends.

The new reports for Ada County and for Canyon County are now available here.

Carey Farmer, President of Boise Regional REALTORS® and Associate Broker at Group One Real Estate: “This new level of detail helps consumers understand the trends behind the trends, while also giving our REALTOR® members another tool to explain these market variations to their buyers and sellers.”

For example, looking at the Months Supply of Inventory metric for homes priced between $200,000-$249,999, as of January 2016, the demand for existing homes in Ada County far outpaced the supply, putting sellers in a great position to list. That said, buyers have a variety of options to choose from in new construction both in Ada and Canyon Counties.

“2016 started off much stronger compared to last year, both in price and the number of sales in most segments,” said Farmer. “I’ve encouraged many homeowners who are thinking of waiting until spring to list their homes, to talk to a REALTOR® now. As the January 2016 market report shows, there are huge opportunities for sellers in nearly every price point in Ada County, and especially for homes priced under $300,000 in Canyon County.”

Key metrics show increases in closed sales, pending sales, and median sales compared to a year ago for all single-family homes with all price points combined:

Ada County

Canyon County

Jan 2016

% Chg Jan 2016

% Chg

Closed Sales

459

7.7% 225

11.9%

Median Sales Price

$237,638

5.9% $146,000

15.0%

Days on Market

67

-4.3% 58

-22.7%

Pending Sales

1,109

27.9% 439

9.7%

Inventory

1,695

-11.5% 795

-23.2%

Months Supply of Inventory

2.7

-27.0% 3.1

-34.0%

 

Additional information about trends within each county, by price point, by existing and new construction, and by city, are now available at boirealtors.com/category/market-info. And download the monthly snapshot graphics for Ada County and Canyon County.

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This report is provided by the Ada County Association of REALTORS® (ACAR), which began doing business as Boise Regional REALTORS® (BRR) in 2016. BRR is the largest local REALTOR® association in Idaho, with over 3,600 members and two wholly-owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS) and the REALTORS® Community 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 makes no representations as to the past or future appreciation or depreciation of property values. 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 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.

 

Distributed to the media on February 12, 2016.

REALTORS® Community Foundation grants nearly $25,000 in Ada County

The ACAR REALTORS® Community Foundation, the 501(c)(3) charitable arm of the Ada County Association of REALTORS® (ACAR) awarded nine Ada County nonprofit organizations with grants totaling almost $25,000 through its annual competitive grant cycle.

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

The objective of the REALTORS® Community Foundation is to support projects and/or programs in Ada County in order to transform the lives of the people in the neighborhoods in which we serve, with special consideration given to projects and/or programs focused on housing needs.

The 2015 grant recipients are:

Boise Firefighters Local 149 Burnout Fund  ̶  $2,500 to provide fire victims with immediate resources for food, shelter and clothing needs.

Boise Firefighters Local 149 - 2015

Boise Rescue Mission/City Light Home for Women & Children  ̶  $3,000 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 - 2015

Good Samaritan League   ̶   $2,755 to purchase a new commercial dishwasher as part of the Renovation/Repair/Beautification project.

Good Samaritan League - 2015

Habitat for Humanity   ̶  $2,000 to help with construction costs for homes currently under construction in Frazier Place, a fifteen home subdivision in Boise.

Habitat for Humanity - 2015

Jesse Tree   ̶  $2,500 to provide funding for the Emergency Rent and Mercy Assistance program to keep qualifying individuals in their homes following a one-time financial emergency.

Jesse Tree - 2015

Life’s Kitchen  ̶   $3,000 to help fund the Stone Soup Project providing one hot and healthy meal every weekday at the Interfaith Sanctuary shelter.

Life's Kitchen - 2015

NeighborWorks (formerly Neighborhood Housing Services)   ̶  $2,500 to help fund the Paint the Town program.

The Salvation Army   ̶  $2,000 to help fund the Nearly Home Transition in Place program.

Salvation Army - 2015

Women’s and Children’s Alliance   ̶  $4,000 to maintain the viability of the critical emergency shelter for victims of domestic and/or sexual violence.

WCA - 2015

 

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The Ada County Association of REALTORS® represents more than 3,600 real estate professionals throughout the Boise region, providing resources to help members conduct their businesses professionally, ethically, and successfully. For more information, visit www.myacar.com.

Low Unemployment, Interest Rates Keep Homes Affordable Event as Prices Rise

In November 2015, the median sales price of single family home prices in Ada County, as tracked through the Intermountain MLS, was at $240,300 up 11.5% compared to November 2014. Breaking that down by sales type, the median sales price of existing single family homes was $213,000, up 7.2% year-over-year, while the new construction median sales price was $356,209, up 11.9% year-over-year.

According to a survey from the National Association of REALTORS®, the median price in Idaho is expected to increase by 3-4% over the next 12 months (looking ahead to October 2016), for existing and new homes combined. While the survey doesn’t break those numbers down to other geographies, in Ada County, we’ve seen prices increase over the past 12 months (from October 31, 2014 to November 30, 2015) by 8.7% for all homes—the median sales price for existing homes was up 8.8% year-to-date, and by 3.9% year-to-date for new construction homes.

There are a variety of factors that will determine where prices end up a year from now, especially local unemployment rates. The latest numbers from the Idaho Department of Labor show a 2.9% unemployment rate for Ada County, as of October 2015. Boise City had the lowest rate across the state at 2.4%, and Meridian came in at 3.6%. These were all well under the 5% rate nationwide.

“There is always a concern that when prices rise, homes will become unaffordable for some people,” said Brenda Kolsen, 2015 President of the Ada County Association of REALTORS®. “We’ll certainly continue to watch affordability in our region, but with the positive jobs numbers, recent wins by BVEP which is bringing new companies to the Valley, and continued interest from people wanting to move to our area, we feel that our local real estate market is in a great position for buyers and sellers alike—and we expect it to be that way for some time.”

Additionally, low down payment programs and the continuation of historically low mortgage rates have allowed people to purchase homes even as prices have risen. In November 2015, HSH.com reported mortgage rates at 3.988%.

In addition to price, here is how the rest of the market performed in November 2015, looking at all single-family home activity in Ada County, as reported to the Intermountain MLS, a subsidiary of the Ada County Association of REALTORS®:

  • Closed Sales were at 621, up 13.1% year-over-year, and up 18.4% YTD
  • Median Sales Price was at $240,300, up 11.5% year-over-year, and up 8.7% YTD
  • Days on Market was at 50 days, down 10.9% year-over-year, and down 9.1% YTD
  • Pending Sales were at 1,152, up 39.3% year-over-year (not tracked YTD)
  • Inventory was at 1,919, down 15.2% year-over-year (not tracked YTD)
  • Months of Inventory was at 2.7 months, down 28.9% year-over-year (not tracked YTD)

Download the November 2015 Snapshot

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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 ACAR, available here: http://publicstats.intermountainmls.com/static/Reports/Ada/2015/November-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.

BVEP – Grow Big Ideas Here

Thank you to Clark Krause, Executive Director of the Boise Valley Economic Partnership, for presenting during the ACAR Annual Membership Meeting on October 15th.  If you missed the meeting or want a closer look at Clark’s presentation on what BVEP is accomplishing around the valley, you can find his presentation here.

RPAC Golf Tournament – Registration Open

Registration is now open for the 2nd Annual RPAC Golf Tournament on Wednesday, September 23rd at The Club at SpurWing. This 9-hole tournament is a 4-person scramble with a shotgun start at 9am followed by lunch at approximately 11:30am (the event should be done by 1pm).  If you are a current investor in RPAC or are interested in learning more about or becoming an investor in RPAC, this tournament is for you!

The tournament is open to all ACAR members.  Major Investors at the Sterling R ($1,000) level and above are invited to play for FREE! All other ACAR members are invited to play for $75. Or join us just for lunch for only $20. REGISTER NOW.

Registration includes:

  • 9 holes of golf on Spurwing’s new Challenge Course
  • golf cart
  • drink ticket
  • raffle ticket
  • awards lunch

All tournament proceeds benefit RPAC which works to protect homeownership and the real estate industry by fighting issues and electing pro-REALTOR® and pro-real estate candidates. RPAC dollars are used on the federal, state and local levels to support issues critical to the future of real estate and REALTORS®.

July 2015 Market Report: Higher home prices despite seasonal sales dip?

Compared to June 2015, single-family home prices in Ada County for July 2015 were up, while pending and closed sales were down. To some these sales counts prompted questions of a slowdown—but a seasonal slowdown is quite different than a market slowdown. Based on the recent trends and comparing them to historical performance, we’re not seeing a market slowdown at this time. Let’s take a look…

Seasonal Trends          Month-To-Month June 2015 July 2015 MTM % Chg
Pending Sales 1,359 1,319 -2.9%
Closed Sales 1,035* 1,007 -2.7%
Median Sales Price $230,000 $232,500 1.1%

 

* Adjusted for sales reported to IMLS after previous month’s market report was distributed.

Market Wide Trends     Year-Over-Year July 2014 July 2015 YOY % Chg
Pending Sales 988 1,319 33.5%
Closed Sales 837 1,007 20.3%
Median Sales Price $214,503 $232,500 8.4%

We’ve highlighted pending sales, since that metric is an indicator of future sales, as the homes under contract will likely close within the next 30-60 days. So while there may be a seasonal dip in pending sales of 2.9% from June to July, looking year-over-year, pending sales were 33.5% higher than the same time last year.

Market Snapshot_July1Yet after last month’s market report, showing peaks in prices and closed sales for Ada County, it’s easy to wonder whether we’re at the top of the market, or leaning towards a downturn. Brenda Kolsen, President of the Ada County Association of REALTORS®, responds: “As noted in our mid-year market report, our area typically sees a slight drop in activity each year in July or August, after the rush of the spring market, and as people take summer vacations and get ready for the new school year. Then we usually have another pop of activity in the fall. I expect we’ll see the same this year if economic conditions persist, and based on the number of inquiries our REALTOR® members are fielding every day, from people looking to buy and sell.”

The question of a market peak—or even another housing bubble—is also being asked nationally. Based on the economic trends tracked by the National Association of REALTORS® (NAR), that’s not likely. At an industry event held in Chicago on Monday, NAR’s Chief Economist Lawrence Yun explained that the national market is very different today than it was at the “bottom” in 2008 or 2009. Most notably because of the changes in credit/lending standards and housing inventory levels over the past few years.

Mortgage lenders now follow strict rules to qualify potential homebuyers, and many of the creative loan programs that were available back then are no longer in use. This has helped to diminish the risk of buyers getting into loans beyond their financial means. Paired with improving jobs numbers, we’re in a much better situation today, both financially and economically.

Additionally, the supply of homes nationwide is well below consumer demand, which is fueling the rise in prices. Locally, we’re definitely seeing the same thing, with supply at 2.5 months in July 2015 for all single-family inventory throughout Ada County. (A balanced market—not favoring buyers or sellers—is typically between 4.0-6.0 months of supply.)

“We will continue to watch local trends, especially pending sales and prices, to identify any irregularities that may emerge outside of our usual, seasonal peaks and valleys,” said Kolsen, “But in the meantime, I encourage any consumer who has questions or concerns about the market, to reach out to a REALTOR® to get the facts specific to their real estate situation.”

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

  • Closed Sales were at 1,007, up 20.3% year-over-year, and up 19.2% year-to-date
  • Median Sales Price was at $232,500, up 8.4% year-over-year, and up 7.8% year-to-date
  • Days on Market was at 42 days, down 8.7% year-over-year, and down 5.5% year-to-date
  • Months of Inventory was at 2.5 months, down 30.6% year-over-year (number not tracked YTD)

 

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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/July-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.

March Market Report- Starts off Strong

Market Snapshot_MarchMarch 2015 is the strongest March we’ve had since 2007. Single-family home sales in March 2015 were 694 in Ada County. YTD total sales are up 14% compared to this time last year; 1,630 homes sold compared to $1,425.

Days on Market for March were 65. That’s slightly down from February and we see it continue to hover around the same number the past few months.

New homes sold in March totaled 134; Existing home sales were 560.

March median home price was $222,000. Our YTD Median Price is $222,700.

New Homes Median Price for March was $282,402. Existing Home Median Price for March was $210,000.

Pending sales at the end of March were 1,208.

In Ada County we now have 3.6 months of inventory on hand, a very slight increase from February, but we can use it as we go into the Spring selling season.

March was strong in both sales and median home price, this should continue into the summer.

On the National level Existing-Home Sales spike in March. NAR Study: Boomerang Buyers Expected to Boost Housing Demand

Looks like we are gearing up for an interesting summer.

ACAR Hires New CEO

Breanna_Vanstrom_small

The Ada County Association of REALTORS® (ACAR) announces Breanna Vanstrom as the association’s new CEO beginning May 1st.  Ms. Vanstrom replaces Marc Lebowitz who accepted the position as CEO of the Tucson Association of REALTORS® earlier this year.  “With Breanna’s capacity as Chief Operations Officer at 10k Research, a subsidiary of the Minneapolis Assn of Realtors, she brings her leadership and operational skills to ACAR which we’re very excited about.  Breanna is passionate about ways to assist our membership, knows the right questions to ask, and has the knowledge to answer those questions which leads to an experience our membership will appreciate and value.  We’re looking forward to her arrival,” said Brenda Kolsen, President of the ACAR Board of Directors.

With more than 11 years of real estate industry experience, Ms. Vanstrom brings a unique perspective to the association by combining marketing, sales, and technology – three key areas of the industry.

“What excites me most about this opportunity are the fantastic people I’ll be working with. ACAR has a great reputation nationally which is due to the outstanding staff and volunteer leadership of the organization. I look forward to sharing my insights and ideas and being part of this passionate and talented team.”

Vanstrom earned a BA in Journalism/Advertising from the University of St. Thomas in Minnesota in 2000. Her industry experience began in 2004 as the Director of Marketing with the REALTORS® Association of the Palm Beaches in Lake Worth, Florida, and in 2006 as Director of Marketing with the Southern Twin Cities Association of REALTORS® in Eagan, Minnesota (which has since merged with the St. Paul Area Association of REALTORS®), and becoming a licensed REALTOR® in 2008.

After earning her MBA at the University of St. Thomas’ Opus College of Business in Minneapolis, Minnesota in 2010, Vanstrom was asked to join 10K Research & Marketing at the Minneapolis Area Association of REALTORS® as the Client Manager before becoming the Director of Business Development. In 2014 she became the Director of Marketing for HomeSpotter, a mobile technology company serving brokers and MLS’s.

Prior to working in the real estate industry, Vanstrom worked as an account executive for the Atlanta advertising agency, Ames, Scullin, O’Haire. Outside of work, Breanna is likely planning her next vacation with her husband, Jeff, taking a walk with their dog, Baxter, digging into her family history, or checking out a new restaurant.

Paint the Town

Paint_the_Town-NHS-Logo-final

2015 Paint the Town is right around the corner! The deadline has passed but if you are interested in helping with a team contact Sarah Kestler directly at 947-7236 and we can get you connected with a team.

This year, Paint the Town is on Saturday June 13th.  NHS is having a kick-off on May 30th.  Find out more about the entire Paint the Town event here.

If you can’t volunteer this year NeighborWorks (formerly Neighborhood Housing Services (NHS)) can still use your help. Get involved virtually ‘Buy a Bucket.’

Seniors Real Estate Specialist® (SRES®) Designation Course

The Seniors Real Estate Specialist® (SRES®) designation course (D1073) is designed for REALTORS® who want to be able to meet the unique needs of maturing Americans when selling, buying, relocating, or refinancing residential or investment properties. By earning the SRES® designation, REALTORS® are prepared to approach mature clients with the best options and information for them to make life-changing decisions.  REGISTER NOW.

The SRES® course highlights topics including distinguishing characteristics and trends related to the over 50 population; housing, finance, and retirement income considerations of these consumers; outreach methods for building 50+ clientele; and counseling strategies to help clients and customers plan ahead for life transitions. Participants can learn:

  • Key differences in housing options, from age-restricted communities to age-in-place design to assisted living
  • Applications of the Housing for Older Persons Act (HOPA)
  • Ins and outs of reverse mortgages
  • How to use pensions, 401k accounts, and IRAs in real estate transactions
  • Ways in which Medicare, Medicaid, and Social Security affect real estate decisions of clients and customers who are 50+
  • How to recognize and protect their clients from mortgage finance and loan schemes and scams that target 50+ borrowers

Senior Real Estate Specialists® or SRES® designees are REALTORS® qualified to address the need of home buyers and sellers over the age of 50. By earning the SRES® Designation, you will demonstrate the necessary knowledge and expertise to counsel clients age 50+ though major financial and lifestyle transitions in relocating, refinancing, or selling the family home.

Instructor Georgia Meacham will guide you through this two (2) day course. REGISTER NOW.