Housing Market Shows Resilience Amidst Challenges
As we head into the summer selling season, many of our clients are asking us what is going on in the housing market and if now is a good time to buy or sell a home.
Certainly, we have a lot of challenges in our economy at large, and with higher interest rates, many would-be buyers and sellers remain on the sidelines as they wait to see what plays out for the rest of this year.
In the COVID boom of 2021 and 2022, home sales were driven by FOMO (fear of missing out), and today, many are now putting their homebuying goals on the sidelines driven by FOMM (fear of making a mistake).
Despite the many economic challenges and market fluctuations we have and still face, the housing market has shown resilience. The DOM (days on market) for existing homes have fallen back to 36 days in Ada County. Although the number of home sales is down from the highs of the COVID market of the last two years, we are back to record low levels of inventory, and certainly, we are sitting at only about 8 weeks of inventory available.
The number of available homes is near all-time lows, and this is contributing to the low DOM and keeping our home prices from dropping. If this trend continues, and as rates start to come back down, it will most likely cause home prices to start to appreciate once again.
As we look towards the rest of this year, it's crucial to monitor the impact of mortgage rates on the market's dynamics. Mortgage rates (which affects affordability) and the low supply issue will be the largest two factors that will impact our home prices and home sales. We track this data closely, and you can see our data in real-time by clicking here.
While it's important to be informed about the market trends, our advice to those thinking of buying or selling a home remains the same. Don't let fear hold you back. Your housing needs and goals should matter more than today's market conditions. Deciding whether it's the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. Your future plans and goals should be a significant part of the equation.
It matters more than ever to work with a professional Realtor who has the heart of a teacher, not a salesperson. One who will listen, ask the right questions, and tell you the truth so you can make informed decisions that aren't based on fear. It you are thinking of buying or selling a home, give us a call at 208-501-8200 or book an appointment with us here.
Enjoy your summer season,