Welcome to the March 2023 update on the Boise, Idaho housing market. Based on the latest data from Intermountain MLS, the median sales price for homes in Boise is now $483,450, which represents a significant decrease of 16% compared to the same period last year. In the past month, a total of 742 homes were sold, which is down by 9.3% year over year.
Days on market also saw a substantial increase, with an average of 72 days on the market, up 260% compared to March 2022. This increase can be attributed to the high inventory of homes for sale in the Boise market. As of March 2023, there were 1,134 homes for sale, which represents a massive increase of 89.3% compared to the same time last year.
These numbers could be indicative of a shift towards a more balanced market, as the high inventory gives buyers more options to choose from and negotiate better deals. However, for sellers, it may take longer to sell their properties and may need to adjust their pricing strategies accordingly. We will keep an eye on the Boise housing market and report any new developments in the coming months.
As we enter March, we reflect on the slower recorded sales during the previous month. However, it's important to note that January typically reflects homes going under contract between the week before Thanksgiving and New Year's Day. Thankfully, the start of the year saw a return in buyer demand, which carried on into February. Unfortunately, this trend has tapered off in the last few weeks due to an increase in mortgage rates. Continued economic growth has boosted buyer confidence, leading to inflation and the Federal Reserve's decision to keep its foot firmly on the monetary brakes, resulting in rising interest rates and a notable decline in new mortgage applications.
The current decrease in mortgage applications may not have a substantial impact on the market in March, but it could lead to a reduction in sales by April or May if this trend continues. As of March 9th, the average 30-year fixed-rate mortgage climbed to 6.73%, a significant increase from 6.12% just a month ago. Traditionally, March marks the beginning of the spring selling season in the Treasure Valley, with nearly 40% of the annual purchase volume occurring between then and June. However, with buyer demand surging in January, demand may have been pulled forward by a few months.
The supply of homes for sale reached its lowest point in February, but there are early indications that the trend of high demand from homebuyers is slowing down, just as we head into a period of increased new listings. This slowdown in demand may be due to the recent increase in interest rates and the psychological impact that has on buyers. The Federal Reserve recently suggested that they plan to raise interest rates higher than expected and keep them there longer. While the real estate market is experiencing elevated buyer demand, there is no guarantee that it will continue into the summer.
For those considering selling their homes this year, the spring selling season is already in full swing, and it's essential to price it right and capitalize on the current high demand while it lasts. As a real estate agent in Boise, Idaho, I'm here to help you navigate the current market trends and ensure that you get the best possible price for your home, despite the current challenges in the market.