Boise Real Estate Market Report April 2022
We have been saying this for months now, but April was yet another record-breaking month for the median home price for single-family homes in Ada County. In March we saw a $25,000 increase from the month prior and in April we saw an additional $20,000 increase from March landing the median price just $5,000 shy of the once unheard-of $600,000! At $595,000 this was a 23.9% increase from April of last year.
With the weather warming up (most days), the grass is greening up, and flowers are starting to bloom, we are entering into the storm of summer selling! Inventory is starting to pick up, but we are continuing to see buyers outnumber sellers with multiple offer situations on many listings.
Days on Market in Ada County, Idaho
The days on market dropped again from 20 days in March to 16 days in April. We are seeing that homes are not flying off the market within hours of being listed, and homes that are not priced appropriately or presented well are sitting around a little longer. In the past couple of weeks, it has become evident that many buyers are not interested in a bidding war and want to hold off on an offer for a couple of days to see what happens.
Interest Rates Increasing
In April the Federal Reserve began increasing mortgage rates to try and slow down our rapidly rising inflation numbers. According to data from Freddie Mac, a 30-year fixed-rate mortgage averaged 5.1% at the end of the month. For most, this is still a relatively low-interest rate looking back in the history books. The pandemic lead to historically low rates that were simply not feasible to keep around forever.
Economists are predicting that the increased rates will slow down the market, but we have not seen that in Ada County as of yet. Data from homes sold in April will present itself in May and June for a more accurate representation of its effects.
Number of Homes For Sale in Ada County Increases
Buyers may be discouraged by the increased rates and prices because their money will not get them as much as it once would, but there is a bright side! In April, we saw inventory increase 170% compared to April of last year! There we 991 homes listed for sale in April compared to 599 in March. We expect to see this number continue to rise going into the summer months.
Is Now Still a Good Time to Sell a Home in The Boise Area
The Ada County Market continues to be in the seller's favor with a large number of buyers compared to homes on the market. It is critical to work with real estate experts that can ensure your home is prepared properly, marketed effectively, and priced just right!
Is Now Still a Good Time to Buy a Home in The Boise Area
If we are to look specifically at existing/resale data in April, 53.2% of buyers paid over the list price, showing that there is still strong demand in the market, especially at the median and lower price points. Fortunately, that means almost half of the buyers did NOT pay over the list price! Every buyer's situation is unique to them and it is imperative that you choose to work with someone who understands just that, has your best interests in mind, and are highly trained in what they do. If you are looking to buy, you can schedule a complimentary consultation here or visit our website for more info.