2013 Year-End Market Statistics
2013 was a very successful year in residential real estate for Ada County. The number of transactions increased 13% over 2012, and the average price of properties sold increased 16%, from $193,655 to $225,226. The median price also rose 15%, from $164,945 to $190,000. A major reason for the price increase was that there were fewer sales of (less expensive) distressed properties, decreasing from 30% of transactions in 2012 to 14% this year and to only 10% in the last quarter.
Inventory actually increased 17% this year but, because the pace of sales also increased, we were left with only 2.9 months of supply at the end of the year.
Canyon County showed interesting results: with only a 5% increase in units sold, the average price increased 26%, from $104,897 to $132,087 and the median price increased 33%, from $90,000 to $120,000. Yet distressed property sales only decreased from 50% in 2012 to 42% in 2013. In the last quarter, however, distressed sales were only 18% of total closings.
Inventory in Canyon County increased 36% from the end of 2012, leaving us with 4.1 months of residential supply.
New construction statistics are noteworthy: while new homes accounted for 20% of sales in Ada County, they accounted for 38% of inventory at year end. It may be significant that, at an average price of over $277,000, new homes sold for 31% more than resale homes in 2013. The new home inventory, at 5.4 months, is more than twice the supply of resale homes at 2.3 months.
In Canyon County, new homes accounted for only 15% of total sales in 2013. At an average price of $180,443, new homes sold for 49% more than existing homes, a significant differential in price. Inventory of new homes increased by 32% with 10 months of supply at year end compared to 3.1 months of supply for resale homes. While new homes accounted for 15% of sales in 2013, they made up 35% of inventory at the end of the year.
Because we are starting the 2014 year with higher prices and higher interest rates than we had at the start of 2013, we encourage both buyers and sellers to act early. The cost of purchasing real estate should continue to rise in the coming year and the buyers and sellers who act soon should benefit.
The graphs below show the movement in average price and number of units sold in Ada and Canyon Counties from 2002 through 2013.