2022 Boise Idaho Real Estate Blog

Million Dollar Home Market

Main Meridian Homes for Sale

I have received several requests lately for details on $1 million plus homes in Ada County so I decided to do a bit of research to see what the statistics actually imply.

2006 was a banner year for new construction sales in Ada County. There were 3, 815 new single family homes (including acreages) closed through the MLS during the calendar year. That represented over a billion dollars in new home sales in Ada County alone

Comparing 2006 sold data with current 2007 available homes shows definite increased price points. The median price of the homes sold in 2006 was $274,828 for single family vs. $327,900 for actives; and $460,000 for single family on acreage solds vs. $850,000 actives. Higher lot prices have mandated building bigger more expensive homes. The boom also created upward pressure on building materials and labor.

As I have mentioned in previous blogs, you need to be cautious about market times since the MLS reveals the average days on market was only 104 days. If you look at the total inventory of new homes currently available in Ada County (1,718) factoring in absorption rates, we have nearly six months of inventory available if we quit building homes today based on last years sales. If you factor in sales rates for the first quarter of 2007, we have only closed 510 new homes, so that would take us over 9 months to absorb the inventory.

Comparing the averages to the upper end showed some interesting results. Our MLS system shows that only 11 homes closed in 2006 over $1 million and yet we current have 46 available to buy! I feel for the builders that have 28 of them in Eagle alone. When the most expensive new home sold in the MLS in 2006 was for $1.4 million, I have to wonder why we have 6 built as specs over $2 million.

As analytical as I am, I still wouldn't know what to tell the builder of the $5.68 million spec home what to expect for market time. In the past 10 months, no one has been in the market for a brand new 12,000 sq. ft. ;seven bedroom 11 bathroom home in Eagle.

I find myself doing more and more research for builders and developers (after the fact) to help them figure out how to get their product moving in this market. Finally, some of them are having me research what is selling, where demand is strongest, and where competition is the weakest prior to building.

I think I need to send a "Thank You" card to my Economics and Marketing professors at BSU since I finally get to put some of what they taught me to work! Or is it that the builders are finally willing to listen?

Feel free to comment.

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Posted by Jim Paulson at 5/3/2007 3:56:00 PM

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