April Closings in Ada County were 8% higher than they were last April and Pending sales were 22% higher. Inventory is 6% lower than it was at the end of last April and stands at 3 months of supply based on average monthly demand over the past twelve months.
Ada County’s average price increased by 18% over the most recent twelve months compared to the prior twelve months. The more accurate picture, however, is that the average price of both distressed and non-distressed properties increased by 8%. The main reason for the higher total increase is that sales of distressed properties decreased from 46% of sales in the twelve months ending April 30, 2012 compared to 24% of sales during the most recent period. The average price of distressed properties, which accounted for only 16% of total volume in the last year, was $138,250 compared to an average price of $223,384 for non-distressed properties.
Comparing those two time frames, short sales decreased 15%, HUD-owned sales decreased by 23% and bank-owned properties decreased by 70%. Banks are getting better at processing short sales and generally prefer that route to foreclosing and taking the property into inventory.
New construction increased 52% in units and 11% in average price during the past twelve months. Vacant developed lots are half of what they were four years ago and there appears to be a limited supply of “A” lots in the near future.
As long as the Fed continues to buy mortgage-backed securities, keeping interest rates artificially low, demand should continue to be strong and prices should continue to rise.
Please let me know if you’d like me to send you the statistics for your area of town.