Boise real estate market is showing a new trend. For the last 3 years home sales have increased over the previous year for both Ada and Canyon County.
However, this home sales trend has now shifted. Ada County home sales have continued to outpace the previous years sales, but Canyon County home sales have dropped significantly below 2011 numbers. See both charts below.
The drop off in sales in Canyon County is likely tied to the reduction in foreclosure properties for sale. Much of sales in Canyon County have been investor related over the last couple of years. In 2011, 34% of all home sales in Canyon were paid in Cash, in 2012, the percentage of cash sales is 31%. The cash sales are trending down. Investors like to purchase distressed priced property, but are having a harder time finding homes they can rent to meet their investment criteria.
The real question is will this new trend of fewer home sales in Canyon County become a long term trend for the Boise real estate market? My thoughts are this trend will be short run because home prices for new and existing homes in Ada county have bounced back strong in 2012, making it harder to find homes priced below $150,000. This lack of low priced inventory in Ada County should help push more home sales in Canyon County in 2013.