The median sales price for the Boise housing market in September was $540,000. Although this was 0.9% higher than the same month last year, it was a 4.4% drop from prices in August and marked the fourth consecutive month of price drops since they peaked in May. The number of homes being sold has also dropped. In September, 700 homes closed. This is a 4.4% drop from August and a 30.3% drop from September of last year. This drop in prices as well as in the number of homes being sold is due in large part to the increase in mortgage interest rates and the effect that’s had on home affordability.
Although these statistics may seem discouraging to some, there are a few significant positives for both buyers and sellers. For buyers, lessened demand has allowed for increased inventory, with 93.8% more homes available than in the same month last year. This means more homes to choose from but also less competition when one does find the right one. Thus, there is more opportunity to negotiate. For sellers, even though the median sales price has been dropping, the amount of equity earned over the past few years is still incredible. Based on median sales prices, homeowners earned 31.7% equity in just the past two years and 54.2% in the past three. So, although not as high as it was, today’s prices are still great and will make it much easier for sellers to afford a new home in today’s market than it will be for those newly entering the market with no equity. Additionally, it’s important to note that although it’s slowing, we are still in a market that favors sellers. Check out THIS ARTICLE to better understand why that is and to help keep things in perspective.
If you’re curious about the current value of your home or what it might look like to enter the market as a buyer, please give us a call. We would love the opportunity to meet with you to answer your questions, help you explore your options, and assist you in achieving your real estate goals. Walking with our clients through important real estate decisions is not a burden but a joy! So, please don’t hesitate to reach out.
For a quick snapshot of the Boise housing market for September 2022, see Boise Regional REALTORS® housing market summary for Ada County below:
See more monthly Boise housing market updates HERE!