Supply and Demand is hard at work on Idaho Real Estate

When calculating absorption rates for available inventory of Idaho real estate, we take the average number of homes sold each month over a period of time then divide that by the current available inventory, giving us the number of months of supply available.

A typical market is about 6 months of supply. When inventory is over 6 months, it is considered a buyer's market. Anything under 6 months of supply is considered a seller's market.

You can calculate this absorption rate in many price ranges and geographic areas. The graph below shows all price ranges in both Canyon County real estate and Ada County real estate by number of units.

As you can see, we are about at the same number of units as we were in the hot market of 2005, however, our prices are nearly half of what they were then.

Currently, Canyon County has about 3.5 months supply of homes for sale and just over 2 months supply in its average price range of about $100,000.

Ada County has about 4 months of supply, making most of the entire Treasure Valley a seller's market for Idaho Real Estate!

This supply and demand issue is stabilizing home prices and even causing price increases in many ranges here in the Treasure Valley!

With low interest rates and home prices, we are at the most affordable time since 1973 to buy single-family homes in the Boise area!

Looking at the graph above, you can see the available inventory is even more dispelled by "Contingent Short Sale" listings. 31% of available inventory in Canyon County, already has offers waiting for bank approval, whereas Ada County has 21% of its inventory tied up with short sale offers in place.

For more statistics on Treasure Valley real estate and homes in the Boise Nampa area, contact Idaho Real Estate agent, Don Wixom at (208) 880-5039.

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