As mortgage interest rates dipped in December and January, many buyers got off the fence, and the Boise housing market saw pending sales increase to their highest number since June 2023. Unfortunately, at the beginning of this month, we began to see rates move up again. We anticipate this may cause some buyers to pull back but are curious to see just how much it will affect home sales in our area in the coming months. In looking at national statistics, Redfin’s Economic Research Lead, Chen Zhao, anticipates that increased rates, which will likely stay near 7% for now, will give the housing market a slow start this year. But, she expects that “activity should pick up a bit in the spring, partly because it’ll be selling season and partly because people are getting more and more accustomed to elevated rates.”
Despite the effect these elevated rates have on affordability, home prices remain stable and are up by 4.7% compared to the same month last year. Limited inventory—which is down by 12.6% from last month and 11.5% from last year--coupled with the ongoing influx of buyers to our area, suggests that prices are likely to keep rising rather than dipping. While the potential for price increases may prompt some buyers to act now and the opportunity for competitive offers due to low inventory may entice some sellers to list, the optimal time to buy or sell ultimately depends on individual circumstances.
If you're weighing the idea of buying or selling this year and are finding it challenging to determine the best timing, we're here to assist. Let's discuss your specific situation, review the latest market predictions, and analyze relevant data to help you make informed decisions about the next step in your real estate journey.
For a quick snapshot of the Boise housing market for January 2024, see below.
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For more market statistics, including those for Canyon, Elmore, & Gem Counties, check out Boise Regional REALTORS® Market Report HERE.
