Though still strong, rising interest rates, economic uncertainty, and increased inventory are causing a definite shift in the Boise housing market. This shift has caused some buyers and sellers to pump the breaks on moving plans as they evaluate costs and wait to see where things might be headed. Although it's impossible to predict the future, we wanted to share a few things that national housing market experts say we can expect in the coming months:
The number of homes available for sale will grow. We are definitely experiencing that here. In May, there were 1,520 homes available for sale, which is an increase of 166.7% from the same time last year. This means prospective buyers have more options and less competition, allowing them to slow down and process their decisions before they purchase. This has also led to homes staying on the market a bit longer. The average days on market in May was 14 days, which is still low but up 22.7% from last year. We anticipate this number will only continue to increase throughout the year.
Mortgage rates will likely continue to respond to inflationary pressures. On May 12th, the nationwide average interest rate for a 30-year fixed-rate mortgage peaked at 5.3%. This was nearly double the average of 2.65% on January 7th. Though rates are still at historic lows, this increase has greatly impacted home affordability and played a major role in the demand for mortgages sinking to its lowest level in 22 years.
Home prices are projected to continue to climb. In May, the Boise housing market hit a new record high with a median sales price of $602,250. It’s possible that prices could drop slightly in the coming months, but as we shared in last month’s update, prices are anticipated to stay on an overall upward trajectory. View various nationwide price appreciation projections for the coming year HERE.
We know there is much to consider in making decisions about real estate. Please know we are always eager to talk with you about your questions and concerns and to be a trusted advisor as you navigate the best steps forward. Don’t hesitate to reach out! Having the opportunity to help our friends, family, and clients is a joy for us!
See more monthly Boise housing market updates HERE!