Higher mortgage rates on top of already high home prices led to a significant slowdown in buyer activity and home sales this past month. After getting so used to our overly hot and accelerating market these past two years, this cooling-off period has felt a bit more like a shocking and unwelcome freeze to some, especially to sellers who may have recently listed their homes with expectations of them flying off the market the first day at prices higher than their predecessors. But, I believe for many, including myself, this is a welcome change and necessary movement toward a more normalized and balanced market.
If you are a buyer who jumped out of the market due to the ridiculous heat of the competition and accelerating prices, this may be the right time to jump back in. As stated by Boise Regional Realtors, “Cooling demand has given inventory a chance to catch up a bit… There were 2,135 homes available for sale at the end of June, a 192.9% increase from June 2021, and the highest inventory we’ve seen since September 2016.” This change has afforded buyers more options, less competition, the ability to slowdown and process how best to move forward, and greater opportunities to negotiate on price and terms when they find the right house.
If you are a seller who feels you’ve missed the best window for listing your home and are disheartened, I hope you will be encouraged to know the market is still strong. Though prices have dipped a bit from the craziness of a few months ago, the median sales price last month was $592,090—a 12.8% increase from June of last year. When compared with other investments, this is an incredible return on your money and something to be excited about! Additionally, although the average number of days on market (currently 14 days) is steadily increasing, it is still well below the average days on market for single-family homes over the past 10 years, which is 67 days. And, our months supply of inventory in June was 2.4 months. Since a “balanced” market is considered to be one with 4-6 months supply, we are still in a market tipped toward favoring sellers.
Whether you are considering buying or selling or are just curious to know more about our current market and how it might affect you, we would love the opportunity to meet and share more. The information we can provide may help you determine how best to move forward as well as how to set appropriate expectations for the road ahead.
For a quick snapshot of the Boise housing market for June 2022, see Boise Regional REALTORS® housing market summary for Ada County below:
See more monthly Boise housing market updates HERE!
