January 2013 Statistics
January started the year off on a positive note in Ada County, with a 9% increase in sales over last January at a 12% higher average price of $233,306. Distressed property sales decreased to 12% of the total compared to 25% last January, so the market is continuing to get healthier.
Inventory dropped very slightly during the month but is 21% higher at the end of this January than it was a year ago. Despite that increase, the increased pace of sales over the last twelve months has caused us to have only 2.9 months of inventory available for sale.
New construction accounted for 25% of all sales in January, but with new home prices 33% higher than resale homes, new homes are beginning to sit on the market. There is a 2.2 month supply of resale homes compared to a 5.5 month supply of newly built homes. Moreover, while the inventory of resale homes has increased 14% over the last year – not keeping pace with the average increase in inventory – the number of new homes on the market has increased 35%.
It is encouraging to note that sales of upper end properties in Ada County (over $500K) increased 58% in the last twelve months compared to the previous twelve months.
Sellers: This is a great time to put your home on the market. Competitive resale inventory is low and there are not enough existing homes for buyers to choose from. If the number of resale properties on the market doubled, we would still have only 4.7 months of total residential inventory – still a significant shortage. Why not benefit from current market conditions?
Buyers: Interest rates have dipped in the last few weeks, making homeownership more affordable. If you can act now and find a home that is “almost” good enough, it may turn out to be a great buy in the long term.