Navigating the Shifts: Insights for Home Buyers and Sellers

As Boise’s real estate market continues to adjust to broader economic landscapes, several trends are emerging that both buyers and sellers should consider. Here’s a deeper look into how the market has evolved over the past year, considering key factors like selling prices, transaction types, and market velocity.

Take a Look at the Boise Area Real Estate Market Facts and Trends for August 2024

Ada County Trends in Selling Prices

In 2024, approximately 34% of homes in the Boise metro area sold for full asking price or above, up from about 29% in 2023. This indicates a competitive market where well-prepared homes are in high demand. Moreover, the median home price in Ada County has reached $545,000 for both resale and new construction, highlighting the increasing value and investment buyers are willing to place in quality properties.

Canyon County Market Snapshot: 2023 vs. 2024

In Canyon County, the market has shown notable changes from 2023 to 2024:

• 2023 Overview:
  • Median Final Sales Price: Approximately $395,000
  • Average Days on Market (DOM): Around 43 days
  • Homes Sold at or Above Asking Price: 21.9% of homes achieved this mark, with 559 homes selling at or above the listed price after considering closing costs.
• 2024 Overview:
  • Median Final Sales Price: Approximately $425,000, marking a 4.9% increase from 2023.
  • Average Days on Market (DOM): Decreased to about 57 days.
  • Homes Sold at or Above Asking Price: 23.5% of homes sold at or above the original asking price after accounting for closing cost contributions.

These figures from Canyon County demonstrate a robust but slightly less heated market compared to Boise, with homes taking longer to sell but still fetching competitive prices.

Cash Transactions vs. Mortgage Purchases

The proportion of homes purchased with cash has notably risen, indicative of robust investor interest and a significant segment of buyers looking to bypass the complexities of mortgage financing. This trend influences market dynamics, often leading to quicker closing times and potentially fewer contingencies.

Impact of Interest Rates

Current mortgage rates have dipped to around 6.125% for a 30-year fixed mortgage, a decrease from last year’s average of nearly 6.94%. This reduction in rates has potentially increased buyer affordability, allowing more people to enter the market and existing homeowners to consider upgrading. The expectation of further rate cuts by the Federal Reserve could continue to foster this buying enthusiasm.

Looking Ahead

As we progress through 2024, potential buyers are advised to take advantage of the lower interest rates, while sellers might want to capitalize on the high demand, especially for homes that align with modern buyer preferences. Both parties should remain vigilant about shifts in economic indicators and Federal Reserve policies, which could impact mortgage rates and overall market conditions.

Conclusion

The Boise and Canyon County real estate markets remain dynamic and promising, with opportunities for both buyers and sellers. Staying informed about these trends and aligning strategies accordingly will be key to navigating this active market successfully. Whether you’re planning to buy your dream home or seeking to sell at a competitive price, the current market conditions offer favorable prospects for informed and proactive participants.

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 [email protected] 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 [email protected].

The first half of 2024 has treated Ada and Canyon County real estate markets to a ride wild enough to rival any amusement park! Let’s break down the twists and thrills with the Boise real estate market update July 2024:

Take a Look at the Boise Area Real Estate Market Facts and Trends for July 2024

Ada County Highlights July 2024

• Home Prices: Saw a robust 5% climb, with homes being snapped up quicker than in the past.
• Median Price: Reached $532,990 or $525,000 if you take into consideration concessions from the seller to the buyer (this could be $ towards buying down the interest rate, contribution towards closing costs, etc.)
• Days on Market (DOM): Homes lounged on the market for an average of 39 days.

Buyer Types:

• Cash Deals: 1,029 homes bought with cash.
• Financed Purchases: 3,044 homes secured with financing.

Canyon County Highlights July 2024

• Home Prices: A modest 3% uptick, but with a bit more room to breathe in inventory due to new construction.
• Median Price: Settled at $402,000.
• Days on Market (DOM): Averaged at 42.8 days.

Buyer Types:

• Cash Deals: 347 homes.
• Financed Purchases: 1,759 homes.

Buyer Opportunities & Seller Expectations

More Choices in Canyon County: Slight inventory growth (in new construction, a slight dip in existing homes compared to last year) spells more options and less pressure. The perfect time to discover that hidden gem!

A drop in interest rates in Ada and Canyon Counties could boost the real estate market by increasing buying power and demand, leading to more competition and potentially higher home prices. This may result in homes selling faster and current homeowners refinancing to take advantage of lower rates. However, if demand significantly outpaces supply, the market could overheat, making homes less affordable, especially for first-time buyers. Monitoring local economic conditions alongside these changes is crucial for making informed decisions in the real estate market.

That’s why now is a good time to start shopping before the frenzy occurs, of course, it’s important that the payment is affordable.  A tip is to look at today’s market for 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.

Ada & Canyon’s Hot Market: With inventory at a squeeze, it’s still a seller’s market. Now’s your chance to shine and make the most of the demand. Remember, the agent you choose can make or break the deal. Go with someone who knows the ropes—like me!

Overpricing Risk: It’s tempting to shoot for the stars with pricing, but even in a hot market, the sweet spot sells. Price it right from the start—like my recent listings, both sold in under a week with multiple offers!

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 [email protected] 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 [email protected].

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 [email protected] 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 [email protected].

The median price in both Canyon and Ada Counties has increased as of April 1, 2024. In Ada we saw a 14.4% increase from the same time last year and in Canyon County a nearly 5% increase.  Home prices have gone up, but so has inventory, yet bidding wars are not the norm.  In fact, even with the price increase it may feel different to sell your home this year than in past markets with increasing prices.  Let’s dive into the trends driving the Boise Real Estate Market Facts and Trends – April 2024

Take a Look at the Boise Area Real Estate Market Facts and Trends for April 2024

Rising Home Values and Shifting Market Dynamics

This year, home values have continued to rise, alongside a reduction in days on the market. As we step into the Spring market, there’s a noticeable increase in inventory. However, this doesn’t necessarily signal a surge in buyers. With interest rates fluctuating within the high 6-7% range, the appeal of selling homes with lower rates and purchasing at higher rates diminishes. Currently, there are fewer buyers compared to previous years, which can be attributed to the low overall inventory despite the increase.

As we transition from Spring to Summer, if rates decrease, we may see a gradual rise in home prices again. Buyers are cautious, paying over the odds, resulting in fewer bidding wars and multiple offers than we’ve seen in similar past markets.

Interest rates are crucial in shaping the inventory entering the market and will impact home prices significantly. Many buyers have been on the sidelines, awaiting lower rates, and are now re-entering the market. States that typically feed buyers into the Treasure Valley are softening, which might boost the buyer pool in Boise once these individuals sell their current homes. This could potentially shift the market back to favor sellers as demand might surpass supply, though less dramatically than during the pre-COVID and COVID years.

Spring Insights:  A Time of Opportunities and Cautions

Spring is a season of increased home prices as more buyers join the market. A slight dip in interest rates could bring back buyers who were previously priced out. Despite this, buyers remain apprehensive about overspending and taking on homes that might require significant updates or repairs. Interestingly, even though home prices are going up, most homes are still selling under the asking price if we include concessions offered.  For example in March 2024, 63% of homes in Ada County sold under the asking price if you look at final sales price and concessions offered.  In Canyon County 79% sold under the asking price.

Notably, a large percentage of homes are selling below asking price once concessions are considered—63% in Ada County and 79% in Canyon County as of March 2024.

For sellers, it’s important to note that homes are taking longer to close, with buyers opting for extended inspection periods and less likely to agree to rent-back arrangements. Sellers should be prepared for a closing window of 45 to 60 days post-acceptance.

Rates are likely to stay elevated through the summer, influencing buyer behavior. Sellers should ensure their homes are in prime condition to attract the best offers, and be ready for negotiations involving more credits and a longer selling process. Buyers can benefit from the extended market time to make well-considered decisions, including thorough inspections like sewer scopes or fireplace checks.

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 [email protected] 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 [email protected].