It’s no secret that Boise is growing rapidly (see the Forbes article below). With this increase in population comes increased need for housing, and we are struggling to keep up with demand. Inventory was down 18.8% from last February, hitting a new record low of only 1,205 homes available for purchase.
The effects of this shortage are definitely hitting prices hard, resulting in a new record high median sales price of $297,500 in Ada County. This is up 16.7% from last year!
With increased competition from people moving from both inside and outside the area, buyers need to be prepared to give their best offer to secure a home. Some suggestions for how to do this when looking to buy are as follows:
1) Have an Advocate: Have a Realtor who knows the market and has experience in advocating for their buyers with sellers and listing agents. Your Realtor should be able to provide suggestions for how to improve you offer and make it most attractive to the seller. This may include a rent back agreement, flexible closing timeline, a personal letter, a quick inspection contingency timeline, a price escalation clause, or a myriad of other options. (Shameless plug—we do this well!)
2) Know the Market: Watch the market so you can see what homes are coming available and the prices for which they are selling. This way, when the right place is listed and there are multiple offers, you’ll have a better grasp on how much above the price you would want to go. (If you use a TripleCord agent, we help with this and will provide you with actual sold data so you can better determine the market value and price you are willing to pay for the home).
3) Have Your Financing in Order: Even if you aren’t quite ready to buy, meet with a local lender or your financial advisor and know your financing options. In this market, it’s very rare for a seller to accept an offer contingent on financing or contingent on a home sale. Know what you’re options might be for removing those contingencies before you try to buy. (We would love to share more about how to do this and also put you in touch with a trusted local lender!)
Although this market can be discouraging and frustrating for buyers and their agents alike, we want you to know it is an honor for us to walk with you through the process and to help you get into the right home. We would love the opportunity to talk with you more about current market conditions, your current buying/selling scenario, and how we can come alongside you to help!
Below are the current Ada County market statistics for February 2017 compared to February 2018:
- Closed sales – 638 (up 25.8%)
- Median Sales Price (including new construction) - $297,500 (up 16.7%)
- Days on the Market - 53 (down 8.6%)
- Pending Transactions - 1,513 ?(up 16.1%)
- Inventory: 1,205 ?(down 18.8%)
- Months of Supply – 1.8 ?(down 30.8%)
We also wanted to show how the number of months supply of inventory fluctuates based on the price range.??The current month’s supply condition in each price range is as follows:
- $159,999 or less: 0.6 months.
- $160,000 - 199,999: 0.3 months
- $200,000 - $249,499: 0.6 months
- $250,000 - $299,999: 1.5 months
- $300,000 - 399,999: 2.3 months
- $400,000 - 499,999: 3.1 months
- $500,000 - $699,999: 2.6 months
- $700,000 - $999,999: 3.9 months
If you’re interested in knowing more about the current state of the market, check out these informative? February 2018 Boise Regional Realtors Market Reports for both Ada and Canyon ?counties.