Boise Real Estate Market Report May 2022
May was yet another record-breaking month for the median home price for single-family homes in Ada County. In April we saw a $20,000 increase from the month prior and in May we saw an additional $7,250 increase from April landing the median price over $600,000! Currently, at $602,250 this represents a 16.1% increase from April of last year.
With the weather warming up (most days), the grass is getting greener, the flowers are starting to bloom, and 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 situation
Days on Market in Ada County, Idaho
The days on market dropped again from 16 days in April to 14 days in May. We are seeing 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 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 writing 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 5.23% at the end of May. 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 May will present itself in June and July 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 could, but there is a bright side! In May, we saw an inventory increase of 166.7% compared to May of last year! There were 1,520 homes listed for sale in May compared to 991 in April. 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! If you are considering selling you can schedule a complimentary consultation here or view our website for more information!
Is Now Still a Good Time to Buy a Home in the Boise Area
Additionally, 50.7% of buyers paid over the list price, resulting in an average original list price received of 100.9% for existing/resale homes in May 2022, compared to 105.0% in May 2021.
Agents are used to fielding questions about what’s happening in the market, and today’s market is no exception. Higher rates, price growth, and economic uncertainty are top of mind, but prospective buyers will have more options than have been available in over two years because of the increases in housing inventory we’ve seen in recent months. On the flip side, sellers have continued to receive great value for their homes.