Looking at all the statistics that are published on the health and direction of the Boise-Nampa real estate market area can get rather confusing. I became aware of an index being prepared by Pioneer Title Company, titled (very originally) the PTC Index. In reviewing it I believe it could provide another useful resource in the evaluation of the status of our market.
The Methodology
From the PTCindex.com website:
"To create the PTC Index, we gather data for nine key real estate variables and process them through our weighted algorithm to generate a single number reflective of the Treasure Valley real estate market.
The base data for the PTC Index is culled from various private sources as well as the public domain on a monthly basis.
These nine variables include building permits, new home sales, existing home sales refinances, average home sales price, the 10-year Treasury yield, days on market, distressed (short sales and Real Estate Owned) and notices of default. In simplified terms, the negative data from these sources is subtracted from the positive data to create the PTC Index. But before this happens, the data is weighted using a proprietary computation, resulting in a more accurate reflection of the real estate market.
From time to time, the PTC Index algorithm may be rebalanced to provide the best possible snapshot of the Treasure Valley real estate market."
So with that said here are the numbers and corresponding index number for March, these are combined for Treasure Valley, including both Ada and Canyon counties:
March 2011
| Building Permits | 103 |
| New Home Sales | 73 |
| Existing Home Sales | 732 |
| Refinance | 506 |
| Average Sales Price | 129320 |
| Financial-Bond Market(10-yr Treasury) | 3.41 |
| Days on Market | 98 |
| Distressed(Short Sales and REO) | 4046 |
| Notices of Default | 548 |
| PTC Index | 94 |
To give you some perspective, March's index of 94 compares to 79 in February and 74 for January. Perhaps more telling is comparisons to March of past years; 94 in 2011, 62 in 2010 and 152 in 2009. So are we slowly coming out the dark hole to a more vibrant real estate market? I believe so.
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