Last year at this time we had 320% more inventory than we had in Ada County at the end of this November and yet we had 7% more sales this November than last November and 18% more pending transactions at the end of the month. That has been a major part of the real estate story for the last half of the year: increased sales despite a drastically lower supply of property available for sale. We discussed this in our report last month (“The Answer is Velocity”).
Multiple offers are occurring at every price range and buyers have learned to act aggressively and quickly. A market like this requires some strategic thinking. Some sellers are moving into rentals then putting their properties on the market so they can look for replacement properties in a leisurely manner with cash in hand. Whether you are a buyer or a seller, be sure to check in with your Group One Sotheby’s agent to develop a strategy for this market.
The lack of inventory combined with the acceleration of buying activity has pushed prices up 14% over the last 12 months, roughly double the national price increases reflected in the Case-Shiller index.
The charts below show how this year has been different from last year. The first chart shows pendings and inventory from last year as they occurred in a strong but fairly normal pattern. The second chart shows what has happened this year and, in particular, how pendings and inventory have inverted.