After experiencing a jolting shift, the Boise housing market may be settling into a new normal. Increased interest rates and questions of whether or not prices will continue to come down have put many buyers in a "wait and see" mode. But, with inventory levels still below that of a balanced market and with the median sales price for Ada County actually increasing 4% from last month, it seems unlikely home prices will drop much further. Thus, we anticipate interest rates will be the biggest factor in determining the pace of the market in the coming months.
In speaking with some lenders and other agents in the valley, it seems likely one of the following two scenarios will occur: (1) If rates go down, many buyers (and there are many) who have been waiting in the wings will jump back in the market, lock their rate, and seek to get in contract on a home. This could flood the market with more buyers than there is inventory, creating another competitive season of bidding wars and price increases. (2) If rates go up or remain the same, buyers may stay on the sidelines for a while. But, as they realize these rates are likely the new norm, they will gradually begin figuring out how to pursue homeownership or facilitate a move, and the housing market will march forward.
Every person's scenario is different, and market conditions affect people's decisions differently as well. If you are considering buying or selling and want to discuss potential timing and plans, we would love the opportunity to meet with you. Please don't hesitate to give us a call.
See more monthly Boise housing market updates HERE