How did the Meridian segment of the Boise real estate market fare in October?
Let’s take a look:
There are currently 1,340 homes for sale in Meridian.
During October, 189 homes closed escrow @ an average selling price of $274,875.
This compares to 375 homes closed in October 2005 @ an average selling price of $251,062.
Analysis: 50% decline in closed sales; 8.7% increase in the average selling price.
If you’re a potential seller in Meridian, brace yourself for falling average selling prices. Real estate values are driven by supply vs. demand and you can’t sustain increasing selling prices when you have an oversupply of listing inventory combined with decreasing demand.
Further, Meridian is where most of our new home construction is located and builders are aggressively offering incentives to both buyers and buyer agents to move their standing inventory.
If you’re the seller of a resale property, you face a daunting task competing with builders who are willing to throw in thousands of dollars of freebies, make the buyer’s first six months of payments, and pay buyer agents up to $10,000 bonus commissions on top of a 3% selling commission.
The amazing thing is that I am seeing new subdivisions opening almost every week with more spec homes going up!
(statistics are for single-family homes on lots/acreage; data derived from Intermountain MLS).