February Market Report…it just gets better and better.
Sales in February 2012 were 439 in Ada County, an increase of 13.4% over February 2011. This is the strongest February sales we’ve had since 2007. Year-to-date sales are 829; 13% over the first two months of 2011.
Historically, February sales outpace January by an average of 14%. February 2012 sales increased by 14% over January 2012.
Nationally we know that one job is create for every two homes sold. So far in 2012 we have helped to create 400 jobs. We also know that for each homes sold there is a $60,000 cash infusion to the community; based on YTD sales we have added $50Million to our valley’s economy so far this year.
Of our total sales in February… 44% were distressed….down 9% from January 2012. In February 2011, 59% of our sales were distressed. The 9% decrease in February returns us to the average that we’d been seeing over the last 8 months. In July we were down to 42% overall.
Pending sales at the end of February were 975; an increase of 14% from the end of January. In general pending sales increase in February compared to January; and should continue to increase all the way through April or May. The percentage of pending sales in distress decreased 6% from January, totaling 41% overall. We are now at ten consecutive months below 50%.
At the end of February, we had 14% more sales pending than at the end of January 2011.
February median home price was 158,000; up 5.6% from February 2011; and up 14% from January 2012.
New Homes median price for January was $209,000; a decrease of 1% from January 2011.
The number of houses available continues to decrease. At the end of February our total active inventory was 1,932 homes. This is down 1% from December and 27% less than last year at this time.
At the same time, the percentage of distressed active inventory dipped 1% to 34%. We have been hovering between 33% and 36% since May. We remain well below the 40% levels set last spring….when we were on the increase.
In Ada County we have 4.4 months of inventory on hand.
The price category in shortest supply is <$119,000 with 2.5 months. In the range of $120,000 to $159,999 we have 3.7 months. All price points up to $200,000 have less than 5 months supply. We have benefited all year from inventory levels much lower than national average. Now, however, we are starting to see some slowdown in sales as the inventory continues to fall. Multiple offers are much more prevalent than any time since 2005.
REALTOR® Magazine online offer great insight into managing multiple offers with their Negotiating Toolkit.
Based on February sold data, our most desirable price point is <$120,000 at 28% of all sales. The next largest price point sold is $120,000 to $160,000 which accounted for 23% of total sales. The biggest increase was in sales between $200,000 and $250,000; which were up 100% from January 2012 to 14% overall.
There is no longer any doubt that, in Ada County, we are in full recovery mode.
The challenge to our continued recovery is available product.
There continues to be broad speculation on the impact of REO properties coming onto our market in a way that would upset our continued recovery. The level of consumer demand, and the nearly bare cupboards of home inventory suggest that we will be able to withstand the impact.