The Boise real estate market (Boise-Metro) is the most improving housing market in the United States according to a September 2012 market report by Core Logic.
Core Logic’s monthly Real Estate Strength Index (RESi) utilizes house price appreciation, total sales pace, distressed sales and new home sales, and overall balance of supply & demand to determine the most improving markets.
For anyone closely watching the Boise real estate market, this will come as no big surprise. We’ve seen substantial house appreciation in 2012, a major decline in foreclosure and short sale properties and a shift in people’s confidence about the market.
I hear more buyer’s saying they want to buy now as they believe it will cost them more if they wait. It’s a sentiment I didn’t hear for several years when it was a “buyer’s market” and seller’s were anxious to receive any offer. Today, however, home seller’s seem to be controlling the market and are able to hold firm to their asking prices (in most cases). In fact, in August, the average sold price to listing ratio was 98.2 % for existing homes and 99.8% for new homes.
The number of homes for sale in the Boise real estate market is a major factor for the upward pressure on home prices. The graph below charts the absorption rate in Ada County since May ’06.
The lower the absorption rate, the more competitive the market is. As you can see, the ratio of supply vs demand has been just as competitive in 2012 as it was in 2006 (which was the peak of the market). For the last 6 months, the absorption rate has been 3.0 to 3.4 months. A balanced market would be 5-7 months. January of ’09 was the slowest, at 16.2 months.