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%
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.