The median price in both Canyon and Ada Counties has increased as of May 2024. In Ada we saw a 3.5% increase from the same time last year and in Canyon County a 1.2% increase. Home prices have gone up along with days on market. Buyers are taking longer to close on homes, and with increased inventory we are seeing fewer bidding wars than in previous years. Let’s dive into the Boise real estate market update for June 2024
Take a Look at the Boise Area Real Estate Market Facts and Trends for June 2024
Increasing Inventory and Nervous Buyers
In Treasure Valley, the real estate scene is shifting dramatically. Inventory has surged by over 40% compared to last year, offering buyers a wider selection of homes. However, this increase comes amidst rising interest rates, shifting the advantage away from sellers. As a result, buyers are becoming more cautious, wary of overpaying in an uncertain market. They are gravitating towards competitively priced homes and seeking concessions from sellers, such as closing cost assistance or property upgrades.
Properties are lingering longer on the market, with homes that surpass the 21-day mark often receiving offers below the asking price. Buyers, especially those reliant on financing, are feeling the pinch of higher mortgage rates, limiting their ability to cover additional costs like closing fees or repairs identified during inspections. Consequently, they are increasingly negotiating for sellers to absorb these expenses.
This buyer’s market is catching many homeowners off guard, particularly those who delayed selling their homes last year in hopes of falling interest rates this spring. Although the supply of resale homes remains tight, more properties are beginning to surface. As of early June, active listings in Treasure Valley stood at 2,685, up by 42% from the previous year. Adding to the supply, builders misjudged the market’s trajectory and continued to expand, with new constructions now accounting for over 40% of the available inventory for sale.
Many sellers are taken aback by the current market conditions, especially those who postponed selling their homes in anticipation of better rates. Now, faced with a buyers’ market, these homeowners find themselves in a bind. While they want to capitalize on their property’s value, they’re also constrained by their own financial commitments, often related to buying their next home. This makes them less inclined to lower their prices significantly or offer extensive concessions. Typically, only those in urgent need to sell—such as relocators or those facing financial pressures—are willing to accept offers below market value or provide substantial incentives to attract buyers. This situation has created a complex interplay between waiting for the right price and navigating the needs of cautious buyers, adding another layer of negotiation to the already intricate real estate market dynamics.
Buyer Opportunities and Seller Expectations
Many potential buyers have been waiting for mortgage rates to decrease, only to find that rates have instead stabilized at higher levels. Despite this, the scarcity of inventory last fall and this spring drove home prices up in the Valley. However, as more homes hit the market, now presents an ideal time for buyers to make their move. Builders, eager to fill their new constructions, are offering significant incentives to attract buyers. These incentives often include upgrades like appliances, landscaping, and even cash towards closing costs or rate buydowns. Particularly, buyers should target spec homes that have lingered on the market, as these properties may come with additional bargaining power for further enhancements.
For those interested in existing homes, properties that have been on the market for over 21 days might provide an opportunity to negotiate better terms. Working with a knowledgeable buyer’s agent who understands the local market can be a game-changer, potentially saving thousands during negotiations.
Working with a knowledgeable buyer’s agent who understands the local market can be a game-changer, potentially saving thousands during negotiations.
Sellers must adjust to a slower market, where homes may take 45 to 60 days to close. The current trend shows buyers favoring longer inspection periods and showing less interest in rent-back arrangements. With rates expected to remain high through the summer, sellers should focus on ensuring their homes are in top condition to attract the best possible offers and prepare for a process that may involve more credits and extended negotiations.
In this shifting landscape, both buyers and sellers must stay informed and ready to adapt to capitalize on the evolving opportunities in the real estate market.
Talk to an Expert
In a fluctuating market, it’s essential to consult a real estate professional who deeply understands local dynamics. Online opinions and advice from acquaintances may be well-intentioned but can lead to costly mistakes. For personalized guidance on navigating Boise and the wider Treasure Valley market, consider scheduling a consultation with Jennifer Louis, your Boise Metro Area Real Estate Expert. Contact me at (208) 509-9122 or via email at jenn@boiseandbeyondrealty.com To set up an appointment.Set an appointment today to understand the market trends in Boise and the surrounding Treasure Valley with Jennifer Louis, Boise Metro Area Real Estate Expert at (208) 509-9122 or jenn@boiseandbeyondrealty.com.
