September was another good month for residential real estate sales in Ada County. Closings increased by 3% over last September and pending sales increased by 10%, signaling a good fall. Inventory is down 10% from the end of last September, leaving us with only 42 days of resale homes and new homes that have been completed and are ready for occupancy. (Only 18% of all new home inventory in MLS is actually finished construction, ready for occupancy.)
Through three quarters of the year, sales are very slightly (2%) ahead of last year despite lower inventory. Higher demand despite lower supply should produce significant price increases.
The chart below shows the average price and the percentage change in average price from 2002 through the third quarter of this year. As you can see, the percentage of price increase (red line) has leveled of at about 6% in the last four years.