ANOMALIES: something that deviates from what is standard, normal or expected. Below are a few anomalies presented by our current residential real estate market in Ada County:
1. We have more sales than we have inventory. Put your home on the market and it is likely to be sold very quickly. Not only is it sold, but you may have a choice of several offers. Newly constructed homes can expect an offer before construction is complete. In fact, many builders want to build only specs, not presales, because with a spec, a builder doesn't have to hold a buyer's hands through the many choices the buyer can ponder.
2. Resales, or existing homes, sell for about the same as new construction. The sales price per square foot for resales over the last 12 months is $191 compared to $196 for new construction, a difference of 2.5%. Historically, we have felt that new homes should sell for about 20% more than existing homes.
3. Average time on market for resale homes is 40 days. That's about how long it takes for a loan to be processed. We don't pay attention to average days on market for new homes because most of them are listed before construction is complete.
4. There is only a 15-day supply of resale homes and only 25 days of new homes that are ready for occupancy.
5. Pending contracts at the end of August were 181% of the number of inventory units, a reversal of the normal relationship which was discussed in our last month's market report.
Consult the chart below to see the relationship of sold properties to available properties at the end of August for the past 5 years.
© Group One Inc. - 2020