Our local real estate market has seen a definitive shift over the last couple of months. The expectation of going into a bidding war, having offers waiving all contingencies, and the home going under contract within a few days, are all things of the past.
Higher interest rates and higher home prices have impacted buyers' monthly mortgage payments, causing some potential buyers to make budget adjustments, and others to completely press pause on their home search for the time being. The median sales price for homes in Ada County was $565,000 in August, down 4.2% from July and 6.6% higher than August 2021. Home prices in our market are driven by supply and demand. Sellers are responding to these changes in demand by adjusting their prices accordingly. This has caused the median sales price to come down from its peak of $602,250 in May.
Days on Market in Ada County, Idaho
Homes that sold in August spent an average of 29 days on the market before having an accepted offer, which historically is a much more normal number of market time compared to the 14 days average in August 2021. Buyers have more choices than they had in the last couple of years so they are taking their time to decide if the homes meet all their needs. If the home is priced appropriately, prepared well, and marketed aggressively we are still seeing homes selling quicker than the average.
Interest Rates Increasing
Rising interest rates have impacted some borrowers' ability to finance a home causing buyers to put less money down or consider an ARM (adjustable rate mortgage) or point buy-down rather than viewing less expensive homes. Currently, rates are nearly 6.3%. According to Mortgage News Daily, “Mortgage rates were already in the vicinity of the highest level in 14 years. With large day-to-day swings being extremely common these days, we were only ever one bad day away from making it back to those highs”. The August Consumer Price Index (CPI), a key inflation report released this week and proved inflation to have more power than any other metric when it comes to creating volatility in rates. We recommend staying connected with a lender for direction at this time. Contact us today! We would be happy to connect you with a list of our preferred lenders who can assist and answer any questions you may have.
Number of Homes For Sale in Ada County Increases
Ada County's inventory is continuing to improve! There are so many options with 2,374 homes available for purchase at the end of August. This is great news for buyers who were sidelined when the market was ultra-competitive! This is a significant improvement and good for buyers and sellers -- most of the time, sellers are buyers too! A more balanced, healthy market benefits everyone. Although we are not completely out of the woods yet, we currently have 2.8 months of inventory on hand. Statistics show that the most balanced market is typically 4-6 months.
Is Now Still a Good Time to Sell a Home in the Boise Area
Absolutely! Although it looks loom and gloom with the sales price decreasing from the previous months it is still 6.6% higher year over year, meaning that homeowners are still enjoying record-high equity in their homes and sellers are still receiving great values for their homes.
Is Now Still a Good Time to Buy a Home in the Boise Area
Most will argue now is a GREAT time to purchase a home! It is looking very attractive for buyers since there are more options available to them, more time to make decisions, and home prices have trended down. We have seen more and more situations of seller concessions, rate by-downs, and price reductions.
It is critical more than ever to work with a real estate expert, like ourselves, who can help you navigate this market. Call us today to schedule a FREE consultation.