What’s going on in our Ada County market? The latest statistics are in, so let’s find out.
Ada County, as you all likely know, is comprised of Boise, Meridian, Kuna, Star, Garden City, and Eagle. Before we dive into how these cities, and the county as a whole, stand in terms of real estate today, let’s look at the history of the county’s market.
To make sure the numbers we look at today aren’t heavily skewed, we will be excluding certain statistics—such as those from large acreage properties, condos, and townhouses. We also limited our findings to include homes with a minimum of one bedroom and one bathroom, as well as at least a $2,000 asking price.
In 2009, the average sold price was $201,723. This figure falls on the curve of the downward trend we were seeing in the wake of the 2007/2008 recession. The downward trend bottomed at $160,113 in 2011. Anyone who purchased their home at this time has likely built a lot of equity, as there has been an upward trend in price since that low in 2011. Fast-forwarding to today, we’re sitting at an average price of $290,404.
So, what is driving this cost? We’ll discuss this in a moment, but I’d first like to suggest that you refer to our video to follow along on the chart I’ll be referencing to answer this question.
One major factor behind the upward trend in prices is low inventory. In the $100,000 to $150,000 price range, inventory is at just 0.2 months of supply. That equates to just six days of available supply. In other words, we would run out of listings in just under a week if no new homes came onto the market during that time. And the $150,000 to $199,000 price range is seeing this exact same level of inventory. This lack of available homes makes it very difficult for today’s buyers to find and secure a property. Price ranges above this point are not much better.
Between $200,000 and $249,000 there’s just nine days, or 0.3 months, of supply. Between $250,000 and $299,000, there are just 0.7 months of supply. Finally, there are 30 days, or one full month, worth of inventory in the $300,000 to $349,000 range. To put this in perspective, consider that a normal, balanced market has between four and six months’ worth of supply. Anything more than this constitutes a buyer’s market, while anything below that range is considered a seller’s market. So, currently, all price ranges between $0 and $800,000 are in a strong seller’s market. It isn’t until the price range above $800,000 that the market balances out, and it isn’t until you go above the $1 million price point that the market shifts in favor of buyers.
The lack of available homes in our market makes it very difficult for today’s buyers to find and secure a property.
Moving on, let’s take a look at the disparity between list and sold price for each price range. As you will see in the chart on our video, most price ranges are seeing homes sell within close proximity to their asking price. The list-to-sold ratio for most ranges are in the high 90% range. In the $250,000 to $299,000 range, for example, homes are selling for 98.4% of asking price. If you’re a buyer, it’s important to consider this statistic when determining which price range to shop in. If you are approved for a home up to $300,000, it’s critical for you to look at or below that price.
We hope all of this information has been helpful to your real estate goals. As a way of thanking you for your interest and support, we’d like to offer you the chance to win a $25 gift card. To enter, all you have to do is submit any real estate questions you might have. So, reply to our email or post a comment on our video with your question—if I reply or feature your question in a video, you’ll win a $25 gift card to the business of your choice.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.