It was the first time three consecutive months of single-family home sales exceeded the same period the year before since April-June 2010, when an expiring federal tax credit had first-time buyers rushing to get homes under contract.
The last time Ada County had three straight months of higher sales not driven by tax incentives was January-March of 2006, said Jere Webb, an agent with Coldwell Banker who publishes Webb Charts, a monthly statistical analysis for real estate professionals. “I think the market has finally changed,” Webb said.
According to the Intermountain Multiple Listing Service, 629 Treasure Valley homes received sales offers in February — 22 percent more than the previous month and 15 percent more than February 2010.
Experts attributed the increase to buyers scooping up distressed properties being offered at prices not seen in Ada County since 2003 and at least 1997 in Canyon County.
Despite the overall decline in home prices, resulting competition for distressed properties is producing multiple offers on homes, which may be ending the free-fall in housing values.
The IMLS report for February revealed median sales prices of $147,702 in Ada County and $79,500 in Canyon County, a one-month increase of 9.5 percent and 10.4 percent, respectively.
“We’re at a tipping point,” said Mike Pennington, a residential specialist with John L. Scott Real Estate. “We’ve got people fighting over these short sales, which is going to force home prices back up again in the second half of the year.”
Additionally, new home construction is also showing signs of life, thanks to falling land prices, lower labor costs and interest rates still hovering around 5 percent.
According to the IMLS, a combined 111 new homes were sold in Ada and Canyon counties during the first two months of 2011, which is a 37 percent increase over the same period a year ago.
Wayne Stacy, owner of Stacey Construction, said he recently had 25 potential buyers tour his model homes in a single week, compared with three or four a year ago.
He said many had abandoned plans to buy an existing home after becoming frustrated with lenders who now essentially control the resale market because of the glut of short sales.
Experts concede it can take two to six months to get a lender to respond to an offer on a short sale. And there’s no guarantee the offer will be accepted.
“The banks own that market, and they’ve made a mess of it. It’s become a no-win scenario for buyers,” Stacy said. “I’ve had people who had been waiting eight or 10 months for a response. Many are empty-nesters who don’t have a problem with their existing home and finally just decided to build a new home and get exactly what they want.”
The upturn in sales over the past three months is encouraging, said Stacy, noting that the winter is usually a time when consumer interest is at its lowest.
He said builders believe the spike in winter sales is a precursor to a strong spring selling season.
As a result, the number of homebuilders taking part in this spring’s 2011 Parade of Homes has grown to a maximum of 40, compared with 15 two years ago, signaling optimism among builders that new home market has turned the corner.
The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
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Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
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