Has the Idaho Housing Market Hit Bottom?
The available number of available homes for sale nationally as well as here in Boise, Idaho, and the Treasure Valley continues to fall at the end of January. Additionally, the demand for housing has picked up considerably this year as interest rates have seen improvements in the last several weeks and buyers are returning to the market. The combination of lower rates, increased demand from homebuyers, and low levels of available homes for sale is helping to stabilize home prices which were falling in the 4th quarter last year.
So the question is: have we already seen the bottom for the housing market? Or, is this a temporary blip, a red herring, before an inevitable recession hits or interest rates climb again?
Everyone has their opinion of course, but here’s the data as we know it, right now, and since we track the housing market in Ada and Canyon counties very closely every week, we present the data so that our clients can make informed decisions based on what actually is going on in the market.
Homebuyers Are Defying Expectations
Out of the gates this year, the increased homebuyer demand is defying the expectations that many experts predicted last year. We even wrote an article in September of last year addressing why we didn't think the market would crash and it appears the data continues to support our opinion. If you’re a buyer on the sidelines hoping for carnage in the housing market so you can swoop in for a great deal — there just isn’t any sign of that in the data and in fact, it appears that December might very well have been the bottom for the home prices. However, prices are better and today’s buyers have more negotiation power, more options to choose from, and more time to make a decision making it a great time to buy a home. If you are considering buying a home this year, this might be the best time to start the conversation and get started before this window of opportunity is gone.
Climbing Home Prices
In response to the surprising amount of home buyer interest and the tight supply of available inventory, falling home prices have stabilized and might very well start to see improvement this year. It’s not skyrocketing. It’s not like last year. But, home prices aren’t falling like we were experiencing last year as the market was resetting. If you are looking to sell your home in the coming months, you will need to ensure your 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 the asking price are over and for many, this is welcomed news as we have a much healthier market today. Our advice to sellers is to make sure to work closely with a professional and well-informed real estate agent on your pricing and marketing strategy in order to reach your goals.
This uptick in activity, as well as the stabilization of mortgage interest rates, is a positive sign for a much healthier market for both buyers and sellers as we gear up for our spring market.
If you have any questions about how this information may affect your real estate goals this year, please call us today at (208) 501-8200 or book an appointment with us by clicking here.
At your service,