Sales in July 2012 were 633 in Ada County, an increase of 9.14% compared to July 2011. Year-to-date sales are 3,975; 9.6% over the first seven months of 2011. Dollar volume for July was up 21.67% to $129Mil. For the year we are at $775Mil. New homes sold in July increased 69% over new homes sold in July of 2011!!…and are up 66% YTD.
Historically, July sales slow from June by 11%. July 2012 sales decreased by 9% compared to July 2012.
Of our total sales in July… 24% were distressed (151 total sales)….down 4% from June 2012. In July 2011, 42% of our sales were distressed. In January 56% of distressed properties were REOs and 44% were short sales. In July the ratio was 67% short sales (101 total sales) and 33% REOs (49 total sales). This is four consecutive months with short sales being the larger percentage of distressed properties sold.
Pending sales at the end of July were 1,172; down 9% from the end of June. In general pending sales in May are the highest of the year; and June the second highest. The percentage of pending sales in distress decreased 1% from June, totaling 26% overall. This is the lowest number we’ve seen in several years. A year ago we were averaging close to 50% of pendings in distress; but have decreased steadily since January. Of Pending sales in distress, short sales outnumbered REO’s 3 to 1.
At the end of July, we had 25% more sales pending than at the end of July 2011.
July median home price was $173,000; up 14% from July 2011. Median home price is up 25% since January of this year and above $150,000 for six months running. We continue to outpace our national recovery; according to NAR’s most recent report. New Homes median price for July was $211,681; no change from July 2011.
The number of houses available increased ever so slightly for the fourth consecutive month. At the end of July our total active inventory was 2,161 homes. This is up 5% from June and 15% less than last year at this time.
At the same time, the percentage of distressed active inventory dipped 2% to 24%. This is the lowest number we’ve seen in several years. We have been hovering between 33% and 36% for the last year. We remain well below the 40% levels set last spring….when we were on the increase.
With an inventory increasing and the percentage of distressed inventory decreasing; median home price will continue to strengthen. Of our Distressed Inventory 90% is Short Sales and only 10% is REO; nearly unchanged from last month. We increased available inventory in price ranges of <$120,000 to $300,000. Sales in the higher priced inventory $300,000 to $500,000 decreased by roughly 10%. The number of available new homes increased in the price ranges of $120,000 to $160,000 by a total of 30 homes. In Ada County we now have less than 3.3 months of inventory on hand.
The price category in shortest supply is <$119,000 with 2.1 months. In the range of $120,000 to $159,999 we have 2.5 months. All price points up to $400,000 have less than 4 month’s supply. We have benefited for nearly two years from inventory levels much lower than national average.
Multiple offers are much more prevalent; now becoming the norm.
Based on July sold data, our most desirable price point is $120,000 to $160,000 which was 27% of total sales. The next largest price point sold is $160,000 to $200,000 at 19% of all sales.
I’m still going to stick with my conservative forecast for the rest of the year; single digit sales increase and double digit median price increase. I’m hoping to go on Mike Turner’s radio show soon and compare our predictions.
Marc Lebowitz, CAE, RCE | Executive Director
Ada County Association of REALTORS