Newsletter | 2020 Q3

2020 Q3 Residential Statistics

* Submitted Lots data may be delayed depending on each agency's reporting process.

Aggressive Redeployment

Recovering from second quarter shockwaves surrounding social shutdown, building permits activity in Q3 shot up considerably in an apparent effort to make up for lost time. 2,144 new residential construction permits issued during 2020 Q3 marks a noticeable deviation from the historical trend, where Q2 is typically the strongest quarter for construction and Q3 tapers off. With the relentless demand for housing that continues to sweep the Treasure Valley, and indeed all of Idaho, builders dove right back into the task at hand with remarkable zeal.

An unusual trend has appeared surrounding MLS-reported sales of New Construction. There is typically a predictable gap between issued permits (green line) and MLS-reported sales (orange line), representing that many builders have in-house sales teams and do not operate through MLS. Much like a pair of dancers, intersection or divergence of these two lines tends to snap back to the mean. Their close proximity during Q2 and Q3 may suggest that a higher proportion of MLS-integrated builders were moving inventory, in which case we can expect an equalizing counterbalance next quarter. Alternatively, we may be witnessing a change whereby more major builders are now supplying data to MLS.