Returning to a Normal Market
We appear to be very close to completing the swing back to a non-distressed market in Ada County. This year to date, only 17% of total units and 12% of total volume sold were financially distressed properties (short sales, bank-owned or HUD foreclosures) compared to 35% of units and 25% of total volume last year, cutting the distressed market roughly in half. This July, only 11% of units and 7% of volume were distressed properties compared to 24% of units and 16% of total volume in July 2012, accentuating this trend.
This market behavior has encouraged sellers to bring more properties on the market as our inventory has increased by 26% over the last four months and our supply has increased from a low of 3 months to 3.4 months (a 6-month supply is considered to be a normal market, balanced between buyers and sellers). Sellers have evidently seen the opportunity this market gives them and are taking advantage of it to make a move.
New construction is leading the way. This year to date, the number of new homes sold has increased by 32% over last year, the average price has increased 16% and the total volume of new home sales has increased by 53%
Canyon County is also recovering and heading to a normal market but seems to be about a year behind the Ada County market in its recovery. From January through July, distressed sales in Canyon County decreased to 30% from 58% for the same period last year. Moreover, this July’s distressed sales were only 19% compared to 46% last July.
New construction in Canyon County is also strong. Year-to-date new home sales have increased by 43% in units, 18% in average price and 67% in total volume.
Sellers, the market has turned. This is a great time to put your properties on the market before the new construction machine can provide more competition.
Buyers, interest rates have increased and are likely to increase in the months ahead and prices are still below the highs of 2007. Now is a great time to purchase the home you have been thinking about.
Market Statistics Click on the links below to download the latest Market Statistics.
Click on the links below to download the latest Market Statistics.
Market – These include homes of all ages and new construction.
Existing – This includes all homes older than 1 year and excludes new construction data.
New Construction – This includes new, to be built, and under construction homes.