First Quarter Market Stats 2013: Out Like a Lion!

First Quarter Market Stats 2013: Out Like a Lion!

First quarter closings in Ada County were almost exactly the same as they were in the first quarter last year, but the average price of all properties sold was 22% higher. Behind that somewhat remarkable number, however, is the fact that sales of distressed properties are decreasing.

In the first quarter of 2012, 46.7% of all residential closings were distressed properties compared to only 22.5% this year. Because the average price of non-distressed properties is over 50% higher than the average price of distressed properties, the change in the mix doubles the actual average increase in prices. The first quarter saw an increase of 10.7% in the average price of non-distressed properties; similarly, the average price of distressed properties increased by 11.1%

It is interesting that inventory is almost the same as it was at the end of the first quarter last year, having risen about 11% from the low mark at the end of last year. The increase in prices appears to be having an encouraging effect: inventory is up from 2.8 months of supply at the end of 2012 to 3.0 months at the end of March.

Multiple offers are common and many buyers are using escalation clauses in order to get what they want in a competitive market. Sellers are increasingly in charge as more inventory is needed to satisfy the surging demand.