Fall is here, bringing cooler weather to the Treasure Valley and changes to our real estate market. The market has leveled out a little before the winter hits, and we are discovering that if the prices of homes are right, then they are selling!
The median sales price for Ada County in August 2022 was $565,000. That was down 4.2% from July and 6.6% higher than in August of last year. If your house on the market is more than $10,000 off the correct pricing, then you will not have interested buyers. Supply and demand dictate housing prices, and sellers are adjusting their prices to the current demand. Due to these changes, the median sales price dropped from the high May 2022 median of $602,250.
Many buyers are paying less than the listed price for their homes due to price reductions or agreed-upon seller concessions. There are many more options for buyers now as well. With about 2.83 months of inventory on the market right now-6,000 homes with 3,000 pending sales, the market hasn’t stopped! However a balanced market, one that favors neither buyers nor sellers, needs between 4-6 months of inventory.
Interest rates are currently higher than we’ve seen for many years at around 7%. It is important to remember that 8% is what an over-50-year historical average would be and we’re not there yet. Mortgage application submissions decreased slightly by 0.8% during the first week of September, and continuing jobless claims dropped by about 6,000 in that same week.
Despite the higher interest rates, other market conditions have improved for buyers. The lower prices, more inventory and housing options, and longer market time help buyers to be able to decide without feeling rushed. Homes sold in August 2022 were on the market for an average of 29 days, significantly longer than the average of 14 days in August 2021.
A greatly appreciated Lender at Fairway Mortgage, Traci Sansinena, has a saying: “date the rate but marry the house.” Don’t lose out on the house of your dreams or a starter home you can afford, because rates change and at some point, you’re going to be able to refinance.
We at TV Idaho Real Estate and TV Property Managers can help you sell your home and buy the one you need right now, contact us! We would love to help you and your family achieve your housing dreams.