Home Sales are up in all price ranges in Boise (Ada County). All prices ranges except homes priced below $120,000. The supply of homes priced under $120,000 is disappearing, which has lead to a sharp decrease in sales in this price range.
WHY THIS IS IMPORTANT:
If you are hoping to buy a home price near $100K or below, better start getting busy. Most sales in this price range today are from old short sales started months ago. As of this writing there are only 59 available homes in ADA County priced under $100K (including townhomes and condos). Exactly one year ago there were 266 homes available under $100K.
Ada County homes priced under $100K are relativity a new thing for Boise. This price range was effectively created due to the massive outpouring of foreclosures on the market. Banks often competed with each other to make sure their homes sold which caused a sharp drop in home prices and a large uptick in homes sold under $100,000.
Now that Foreclosures have slowed down, there is no longer the downward pressure on home prices and almost no inventory of homes below $100,000 available anymore, unless a new distressed property comes available.
The lack of home sales below $100,000 is Boise's biggest insurance policy protecting homeowners from further price declines in the area. For home prices to drop significantly in the Boise area again there would need to be another surge in inventory priced below $120,000. If that surge does happen it would be an early warning sign that prices will dip again. Right now the entire county is sitting at record lows for available supply. There are no active threats influencing the Boise housing market except for winter slow downs. Therefore, I am predicting home prices should stay strong into 2013 and stay way above last year's numbers.
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