While typically a quiet month of market activity based on seasonal patterns, November home sale and listing totals lagged below the long-term averages. With homes spending more time on the market, current inventory has increased. However, new listings have decreased by 70.0% from the same week last year, with 89 homes listed in the previous seven days. This is the most significant reduction we've observed since we started tracking the indicator in 2020, marking the 21st week in a row that the number of newly listed existing properties has decreased year over year. In 2022, 1,843 residences were available for purchase, up 131.5% from the same week in 2021. Of those, 876 were newly built residences, and 967 were existing resale homes.

 

The median sales price of properties in Ada County declined from the previous year for the first time since October 2014. The median sales price of properties sold in November was $525,000, which was 2.5% less year over year and 6.5% lower than in October 2022. 

 

The rapid increase in housing prices over the past few years and higher mortgage interest rates have reduced purchasers' purchasing power and reduced demand. As a result, some homebuyers have adjusted their finances, whereas others have put a pause on their search for new properties.

 

Sellers are now giving buyer incentives, including closing cost credits, to entice the buyers who are still in the market. But Sellers are not the only ones making changes. In order to assist in adapting with increasing borrowing rates, lenders are also modifying and introducing new programs for home buyers. 

 

Home Inventory 

In comparison to a year or even six months ago, those who are able to buy in today's market have more selections to pick from and more time to look for a home. In November, there were 1,843 houses for sale in Ada County, which is 131.5% higher than in November 2021. While home buyers may have more options to choose from, affordability due to rising mortgage rates is the leading cause for homes not selling. 

 

Days On Market

Homes that closed in November were on the market for an average of 47 days before a contract was signed, up from 29 days at the same time last year. Longer days on the market are primarily a result of rising mortgage rates, affordability difficulties, and high prices. Pricing your home accurately and hiring professional home staging are great tools that can help get your home under contract quicker!

 

What’s to Come in 2023?

According to data gathered by Freddie Mac from the Federal Reserve Bank of St. Louis, mortgage interest rates have decreased recently. The most recent high average was 7.08% on November 10, 2022, and the most recent low was 6.33% on December 8, 2022. Real estate professionals are optimistic that mortgage interest rates will continue to decrease or, at the very least, stabilize in 2023. 

 

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! 208-473-2203