The seasonal slowdown, usually common this time of year, seems non-existent as the Boise housing market continues to boom. The median home price reached yet another new record at $409,945, up 17.2% from the same month last year. As reported by Boise Regional Realtors, this is “a result of a competitive housing market which is being fueled by low mortgage rates and limited supply compared to demand…According to Freddie Mac, the average 30-year fixed rate mortgage was at 2.9% in September, down 19.7% year-over-year when compared to the September 2019 mortgage rate of 3.61%. While the actual interest rate a borrower receives is based on a variety of factors, the very low rates, as well as increasing rents (as reported by BoiseDev) may be encouraging more people to consider a home purchase.”
The months supply of inventory remained at its current record low of 0.4 months. As we described in September’s market update, this means if demand remained the same and everyone stopped listing homes today, it would take less than 2 weeks for all the available properties to be sold out! Moreover, homes are remaining on the market fewer days. The average days on market for existing homes (not including new construction) was only 17 days, which is a 34.6% drop from the same month last year. Thus, buyers are continuing to have to act very quickly when it comes to deciding whether or not to put an offer on a home and how much they are willing to offer over the asking price or what contingencies they are willing to waive in order to be the winning bid. Quick decisions like these can often lead to “cold feet” on behalf of the winning buyer, so backup offers are HIGHLY encouraged. We have had a few buyers this past month get homes as a result of being in backup position as well as a few sellers who have benefited from having good backup offers in place when their first buyer bailed due to buyers remorse.
The fast pace of today’s market can be very stressful for both buyers and sellers, but it can definitely be made less so with an experienced and caring agent to walk you through the process. If you are considering buying or selling in the coming months, we would love the opportunity to help prepare you and faithfully come alongside you in the journey! Please give us a call and let’s find a time to meet!
If you're interested in knowing more about the current state of the market, check out the full Boise Regional Realtors’ Market Report HERE. Or for a quick snapshot of the Boise housing market for September 2020, see Boise Regional REALTORS® housing market summary for Ada County below: