August 2015 Market Report By Group One Real Estate
Last month there was an article in the Idaho Statesman in which a few real estate agents said our market was about to experience a slowdown. The article included a table with some statistics but little or no effective evidence that a slowdown was upon us. Of course the market has always been slower in the winter months than during the “selling season” months, but the chart below shows that 2015 sales have been running about 15% ahead of last year and 2015 pending contracts, measured at the end of each month, have been running 22% ahead of last year.
Who would have thought that we could have increased the money supply as we have and not be experiencing raging inflation by now? Who would have thought we could have such low interest rates for such a long period of time with the Federal Reserve still unclear on the timing of rate increases? Who would have thought we could have such a hot local real estate market with average prices increasing by only 5-6% per year? These unusual circumstances make it difficult to predict a near-term slowdown with any confidence.
What do we know for sure? We do know this is a superb time in residential real estate: Sellers can sell their properties for more than they have been able to for years and, when they become Buyers, they can still purchase affordable properties with very attractive financing.