November 2013 was similar to November 2012 in Ada County residential real estate transactions. Closings were up 1% this November and Pendings were the same. Inventory increased 13% over the past year, but because the pace of sales was 13% higher over the trailing twelve months (compared to the twelve months ending November 30, 2012), we still have only 3.4 months of inventory.
While the number of transactions increased 13%, the average price of a residential property sold increased by 17%. The average size of a property sold also increased very slightly – from 1997 square feet to 2039 square feet.
The last twelve months have seen a significant drop in sales of distressed (short sales, bank-owned and HUD-owned) properties from 32% of sales in the twelve months ending November 30, 2012 to 15% in the last twelve months. This has resulted in a 40% increase in the sales of non-distressed properties!
New home sales have increased from 19% of total sales in 2012 to 21% in 2013, a 23% increase in the absolute number of new homes sold. New home prices rose 12% to an average price of $274,000, about 30% higher than the average price for re-sales. As costs continue to rise, the price of new homes should also increase in the foreseeable future, helping to bring up the prices in the re-sale market.
Buyers: prices will probably be higher in the future as steady growth in the market is likely to continue. There is not a lot of inventory to choose from but there are fewer buyers to compete with this time of year.
Sellers: with limited inventory on the market right now, bringing your property onto the market may help you avoid more competition in the spring and buyers this time of year are serious about purchasing something.