Our local real estate market has seen a definitive shift through July. Low inventory, low
interest rates, a low desire to live in large cities, and lower prices than other US cities brought many
buyers to Ada County, which drove prices significantly over recent years. Although we're still in a
seller's market, there are clear indicators that our seller's market is starting to get some pressure as
a direct result of buyer fatigue, higher interest rates, inflation, media reporting, and concerns in the US and
global economies.

In July, we saw a slight pull-back in median sales price for single-family Ada County homes from the
month prior (June – Median Sales Price $592,090). Currently, at $589,990, this still represents a 19.2%
increase from July of last year.

Days on Market in Ada County, Idaho

The days on market increased again from 15 days in June to 21 days in July. We see that homes are not flying off the market within hours of being listed, but homes that are not priced appropriately or
presented well are sitting around longer. Even though the number of homes for sale has jumped
significantly, which favors buyers, demand appears to be still robust, and sellers have mostly
remained confident even as financing costs continue to increase.

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. In 2006, the annual average (30-year mortgage) interest rate peaked at 6.41%. Six
years later, rates dropped to an all-time low of 3.66%. Currently, rates are near 5.75%. The Fed has
signaled, and most economists predict that rates will continue to increase throughout 2022. -

Number of Homes For Sale in Ada County Increases

Ada County's inventory is continuing to improve! At the end of July 2021, the overall Single-Family inventory
was just over 1,000 homes. This July inventory was 2,408, which represents a 128% increase Year-Over-
Year (YoY). Meanwhile, the average monthly supply of inventory increased from 1.1 months to 2.8 months
over the same period (months of inventory indicates the amount of time it would take to sell all current
listings at the current sales price if no new listings became available.) 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.

Is Now Still a Good Time to Sell a Home in the Boise Area

The Ada County market continues to be in the sellers' favor with many buyers compared to
homes on the market. Working with real estate experts is critical to ensure your home is adequately prepared, marketed effectively, and priced right! If you are considering selling, you can
schedule a complimentary consultation or view our website for more information!

Is Now Still a Good Time to Buy a Home in the Boise Area

Agents are used to fielding questions about what's happening in the market, and today's market is no
exception. Higher rates, increasing inventory, and economic uncertainty are top of mind. Still, prospective buyers have more options available to them due to the increase in housing inventory we've seen in recent months. On the flip side, sellers have continued to receive great value for their
homes.