Home Inventory In Boise Area May Be At An Inflection Point

The inventory of homes for sale in the Boise area has been steadliy shrinking.  The peak in 2007 for the total number of average monthly SFH listings in Ada County was just under 5200.  In 2010, the peak was 3323 in June, and this December's number was 2295.  The Months-of-Inventory method also confirms that home inventory has been shrinking.  In 2008, the market hit 11.2 months of inventory.  This december, the number stood at 4.7

Here's why these numbers are important:  The market will return to normal by demand.  In a tight supply market, the response to demand is increased prices.  The degree to which demand returns to a market of limited supply dictates the rate of increase.  For prospective buyers, a suddenly tightening market could catch them off guard and spring prices beyoud their budget, ending their opportunity to afford the right home for their needs.  If the number of listiings fails to start rising as the new year matures, and demand - created by promising policy indications from our government - rises, we could be looking at a high-class problem.

For a compete look at the numbers for 2010 - and comparisons to previous years, go to this page on my website:  http://alansmith-re.info/custompage.cfm?cpid=1800