Boise Real Estate | Market Statistics for Q2 \'08

Posted by Jace Stolfo on Wednesday, July 23rd, 2008 at 11:32pm.

Ada County single family home statistics for Q2 '08.

Market summary

Home sales improved in the second quarter but are still down when comparing to the same time period a year ago. There are still a large number of homes for sale, distressed properties coming on the market, and an overall nervousness about the economy that is negatively affecting home sales.

Sales continued to improve in Q2 ‘08

Both existing and new construction home sales continued to improve over Q2 (Fig 1).

Comparing Q2 '08 to Q2 ‘07

The real estate market experiences seasonal changes in both the number of homes for sale and the number being sold. As a result, it is helpful to compare numbers year-over-year. Figure two shows that overall sales were down about 30 percent from a year ago.

Figure 2

Understanding absorption rates

As we continue to look for balance in supply and demand a useful measurement to follow is called an absorption rate. An absorption rate simply says that if no more homes came on the market, and the sales rate stays the same, how long would it take to sell the remaining homes on the market. It is generally accepted that a balanced market would be represented by a 5 or 6 month absorption rate. June showed about a 9 month absorption rate, a great improvement from our January high of around 14 months.

Inventory over the last two years

The next graph shows how the number of homes for sale has changed over the last two years (Fig. 4). Please keep in mind that May 2006 was when the market began to slow down and inventory levels were uniquely low given the demand. As you can see, the number of new homes for sale have been steadily decreasing while existing homes have been increasing when comparing year-over-year.

What price range are most homes selling?

In Q2 ‘08, most home sales occurred between $160,000 and $200,000 (Fig. 5). The median new home price was $214,500 in Q2 '08 compared to $274,000 in Q2 '07. Existing home median price was $206,000 in Q2 '08 compared to $216,500 in Q2 '07.
Figure 5
Data Source: Intermountain MLS. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. This information contained in this letter is for general market analysis. No representations or warranties are made as to the past or future appreciation or depreciation of property values.

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