Who would have thought! Loads of qualified buyers out there and not enough to buy! The lack of choices is leading to buyer apathy and many just deciding to stay put. As of today on the MLS there are 2,371 active listing in all of Ada county (Boise, Meridian, Eagle, Star and Kuna!). If you want to only look at single family homes (which is what most are looking for) the number drops to 1984. Out local MLS includes all listing with any type of contingent as being active listings which really skews the numbers. There are currently 350 homes under contract with some sort of contingent offer (the most common being a contingent short sale). That leaves us with 1634 listing; now lets subtract the 435 homes that are to-be-built or under-construction and we are left with 1199 homes available to purchase and move into in 30 days.
Lets take this down further…most buyers want at least a two car garage, a minimum of 1500 sq ft and are spending between $150,000 – $350,000 on a home (this is the price range with highest demand) and we are now down to 592 homes in ALL OF ADA COUNTY that could close in 30 – 45 days! This is crazy, not to mention frustrating, four years ago there were over 5000 active listings in Ada county.
Yes the lack of inventory is bumping prices up but this is a gradual process. There are a lot of homeowners out there who would like to sell their homes but are still underwater and do not wish to harm their credit by short selling there home (or have the cash to pay off their mortgage) so they are staying put.
The lack of inventory is helping the construction industry. Building permits are up close to 50% over a year ago as more buyers turn to building as the only option left. As builders get busy they are also raising their prices (primarily due to sub-contractors raising their fees).
It is interesting times indeed!