Boise Homes: 2015 Pending Sales Trends

Pending sales of Boise homes are an indicator of future closed sales.

Here’s a breakdown of 2015 year-to-date pending sales.

  • January: 703
    % Change: (baseline number)
  • February: 878
    % Change: +24.9%
  • March: 1,025
    % Change: +16.7%

Takeaways

  • March 2015 pending sales are 14.3% above those of last March.
  • 1,025 pending sales is a very strong number at this early point in 2015.

Data pertains to Ada County single-family homes on lot or acreage.  

Data does not include condo or townhome properties.

 

Boise Homes: Spring Market Emerging

A few brave daffodils are appearing around the Treasure Valley and our Spring real estate market is also starting to emerge.

Pending sales are a good indicator of market activity.

That number stood at 897 a year ago.

As of this morning, we have 1,025 pending sales Ada County, representing a 14.3% year-over-year increase.

We typically see 1,000+ pending sales numbers later in our Spring market.

I think there are several factors fueling the Boise real estate market now, including:

Weather

Our usual winter weather, combined with various holidays, has kept many potential home buyers in hibernation for the past few months.

With our relatively mild winter weather over the past few weeks, those potential buyers are emerging to check out our available properties.

Interest Rates

Interest rates remain dead cheap by historic comparisons and many (most?) buyers recognize that today’s rates are a bargain that won’t last forever.

In fact, many buyers are buying with mortgage payments that are less than rent for a comparable home.

Recovering Distressed Borrowers

During the downturn, many homeowners lost their homes to foreclosures or short sales.

As a result, they were put in the credit “penalty box” for varying periods of time due to damaged credit scores.

Those borrowers have now served their time and they’re out in force, eager (albeit cautious) to become homeowners again.

I’ve personally sold two homes to buyers in that situation in the past 30 days.

All of the above factors point to a very active Spring Boise real estate market!

Data pertains to Ada County single-family homes on lot or acreage.

Data does not include condo or townhome properties.

 

Why I Practice Transparent Real Estate

I have long practiced what I call “transparent real estate”.

I reveal everything (good and bad) to my clients so they can “see through” their transaction with full disclosure and all facts on the table.

If you asked my clients, they would say that I am more of an advisor and educator than the traditional Realtor® who’s focused upon “closing the sale” or “getting the listing”.

In other words, I don’t talk anyone into doing anything!

If anything, I do the exact opposite and advise my clients to carefully consider potential drawbacks.

It’s a lot easier to work with people who are motivated and capable than it is to spend my time trying to convince (“close”) unmotivated prospects to act.

My clients hear both the positive and negative aspects of their proposed transaction from me without enduring the usual sales persuasion tactics.

If challenges arise during the course of the transaction, I share my concerns with them instead of concealing problems and pretending that everything is just fine.

It’s liberating to tell my clients the truth, educate and advise them, and then leave the decisions up to them because it removes the burden of persuasion from me.

Perhaps best of all, it allows me to face myself in the mirror without wondering if my clients will figure out the truth before closing.

The proper role of the professional real estate agent is to educate, inform, and selflessly advise their clients; not “close the deal” for their own best interests!

Allowing my clients to “own” their own decisions also relieves me of the burden of convincing them and keeping them pumped up until closing.

And, it tends to result in a very high percentage of closings vs. sales falling through.

It also allows me to work almost exclusively with referred and repeat clients!

 

How Boise Homes Get (un)Sold

I noticed a newly-installed SOLD sign rider on a home in a local neighborhood a week or so ago.

Then, a couple of days later, the SOLD rider was gone.

Obviously, the sellers thought they had sold their home, only to learn a few days later that they were still the proud owners.

While I don’t know the details of this particular transaction, it caused me to reflect upon what can go wrong in a transaction after a seller has accepted an offer.

Here are some possibilities:

Financing

It’s beyond me why anyone would make an offer on a home without first obtaining pre-approved financing, but it happens all the time.

Perhaps the buyer learned, after the seller accepted their offer, that they couldn’t get their financing after all?

Home Inspection Results

Most homes are sold contingent upon satisfactory results of a home inspection.

Perhaps the home inspection revealed issues that couldn’t be mutually resolved between the buyer and seller?

Buyer’s Remorse

People buy homes on emotion and it’s sometimes amazing how rapidly the thrill is gone after the buyers realize they have made a sudden, major decision.

We call that “buyer’s remorse”.

The bottom line?

Anything can happen in a real estate transaction.

It’s good to remember that a home isn’t truly sold until escrow closes.

 

Meridian Idaho: Tuscany Subdivision

Curious about Tuscany Subdivision in Meridian Idaho?

Here’s what’s available, pending, and closed during in 2014.

Tuscany Subdivision Available Homes

  • # Available: 27
  • Average Asking Price: $319,862
  • Median Asking Price: $325,000
  • Months’ Supply: 2.7

Tuscany Subdivision Pending Sales

  • # Pending: 14
  • Average Asking Price: $335,076
  • Median Asking Price: $347,400

Tuscany Subdivision 2014 Closed Sales

  • # Closed: 119
  • Average Sales Price: $310,915
  • Median Sales Price: $323,000

Data pertains to Tuscany Subdivision in Meridian Idaho.

Months’ supply calculated by dividing the 2014 average monthly closed sales into the number of available homes.