The weather was warm and the market was warmer.
In order to assist you in understanding the monthly statistics, it is important to describe how we capture and analyze our market data. Different sources may deliver slightly different statistics regarding price changes, unit sales, etc. Our data comes entirely from the Intermountain Multiple Listing Service and is captured into a database that includes single family detached homes on less than 2 acres, condominiums, and townhouses. Once the data is captured and stored, we can perform some analyses that wouldn’t otherwise be available to us. For instance, we can track the changes in pending contracts over time because we measure them on the same day of each month and store that information in our database. It’s also worth mentioning that when we speak about months of supply, we use the average number of sales over the trailing twelve months as the denominator in order to eliminate the skewing effect of seasonality.
The number of April closings in Ada County was 19% higher than last April and new contracts (pendings) were more than double those of last April. The large number of pending contracts means there should be a healthy market in the next several months. The average price of a home sold in the last twelve months rose 5% compared to the previous twelve months. Despite the increased pace of sales, inventory at the end of April rose 6% from the end of March, and a sign that homeowners recognize that the market is good for sellers: sales and prices are up and interest rates remain very favorable.
New homes comprised only 14% of all sales in April but pending sales of new homes at the end of this April are 35% higher than they were last April. New homes sold for almost 40% more than resale homes. There are 2.5 months of resale inventory and 5.7 months of new home inventory.
The chart that follows shows sales and inventory activity for the past thirteen months.