Posts in category 'News'

In February, the median sales price of homes that sold in Ada County was $492,115 — down 10.5% compared to February 2022, and the fourth consecutive month of annual decline in price. However, this was a slight increase of approximately $5,000 from last month's median sales price.

More than 40% of all home sales that closed in February were new homes, which typically sell for more than existing/resale homes. This higher-than-average share of new construction sales likely kept the overall sales price a touch higher than the month prior.

Prices are still adjusting to mortgage rates and buyer demand, but this month-over-month uptick in prices may indicate that we're reaching a new normal with prices. Mortgage rates and supply versus demand will be the ultimate determining factors on where prices go, but we'll keep watching to see if prices continue to level out.

With 613 total sales for the county, closings were 7.3% lower than the same month last year. However, this is the first time since June of 2022 that we didn't see double digit annual declines in the number of sales.

Market times continued to slow last month, with homes that closed in February spending an average of 78 days on the market before going under contract. The last time we saw DOM — the average number of days between the time a home is listed and the time it is under contract — higher than 78 days was in February 2012. Despite last months' market times being similar to February 2012, other metrics indicate that market conditions were quite different.

Inventory counts at the end of February 2023 were roughly half of what we saw in February 2012, when our market was in the midst of recovering from the burst of the housing bubble. In today's market, home prices are being driven by supply versus demand, not speculation like we saw leading up to the Great Recession.

Another indicator that today's market is different, is the percentage of distressed sales, or properties are listed in IMLS as "HUD Owned," "In Foreclosure," "REO/Bank Owned," or "Potential Short Sale." In February 2023, 0.3% of sales in the county were considered distressed, compared to 45.4% in February 2012.

Today's sellers are in a much better credit position than they were over a decade ago, and that's a big reason we're seeing so few distressed sales. With that said, you'll need to work closely with your real estate agent to price per the current market and determine the most effective marketing strategy as the market adjusts.

Buyers, on the other hand, have more negotiation power, more time to decide, and more options to choose from than we've seen in recent history. There were 1,039 homes available on the market at the end of February, compared to 493 for the same month last year. Potential first-time buyers can also look into down payment assistance programs specific to their circumstances, as well as Idaho First-Time Home Buyer savings accounts to maximize their down payment savings.

For the third consecutive month, the median sales price for homes in Ada County decreased year-over-year. In January, the median sales price of homes was $487,495 — down 9.7%, or $52,500, compared to January 2022. The last time that the overall median sales price was under $500,000 was in July 2021.

Both the existing/resale segment and new construction segment saw year-over-year declines in median sales price, with the biggest drop in new construction. The median sales price for new homes that closed in January was $494,990, a decrease of 16.0%, or $93,955, compared to the same month a year ago. The median sales price for new homes hasn't been under $500,000 since April 2021.

Sales were also 32.8% lower for the county compared to last year, with a total of 454 closed sales in January 2023. Of those, 269 were existing/resale homes, down 41.5% from January 2022, and 185 were new construction homes, down 14.4% from last year.

Demand for housing waned as higher mortgage interest rates and swift home price appreciation put pressure on affordability. Since the housing market continues to be driven by supply versus demand, sellers are having to adjust prices and negotiate with buyers to close the deal. The average Percent of Original List Price (% OLP) Received for existing home sales last month was 91.9%, which means on average, buyers paid 8.1% less than asking, compared to last year, when the % OLP for existing homes was 97.3%. On average, existing homes that closed last month sold for approximately $60,000 less than the original list price.

Will prices and sales continue their downward trend? Newly pending sales data, a forward looking metric, could indicate that demand bottomed out and is beginning to recover. For the last two weeks, we've seen new contract signings up year-over-year. We've also heard from members that they've experienced increased interest from both buyers and sellers. This uptick in activity, as well as the stabilization of mortgage interest rates, is a positive sign as we gear up for our spring market.

Today's buyers have more negotiation power, more options to choose from, and more time to make a decision. There were 1,169 homes available on the market at the end of January, compared to 441 for the same month last year. This increase in supply is also putting downward pressure on home prices. Market times have slowed as well, and homes that closed last month spent an average of 71 days on the market before going under contract — nearly twice the average time that homes spent on the market in January 2022.

Those looking to sell their home in the coming months need to ensure their expectations are in line with what's happening in the market. The days of a listing going under contract in a matter of hours for well over asking price are over. You may receive multiple offers, but it's less likely that you'll receive more than asking. Work closely with your real estate agent on your pricing and marketing strategy in order reach your goals.