The status of the market as we close out 2019 is representative of the entire last year—low inventory + high buyer demand = increased home prices. Our low inventory situation is best represented by our month’s supply of inventory calculation. For November, that was 1.8 months. This means that if no more homes were listed, all currently available homes for sale would be consumed by buyer demand within 1.8 months (54 days)! In a balanced market, the amount of time this would take to occur would be 5-6 months. Our high buyer demand is best displayed in pending sales, which jumped 20.6% from the same month last year. This jump is significant and has been spurred on by low interest rates and increased awareness of the desirability of our area! All these factors, as we have shared before, are resulting in continued price increases which is demonstrated in the fact that the median sales price last month reached a new record high of $359,900.
What is really needed to help balance our market as we go into 2020 is more inventory at lower price points. Boise Regional Realtors (BRR) states it well. “If you’re ready to sell, there is plenty of demand for housing and no need to wait until spring to list. The same applies to new construction—if builders and developers are able to build at lower price points, the market and buyers would gladly welcome additional inventory. While Realtors are not advocating for more rooftops anywhere and everywhere, BRR is committed to supporting comprehensive, regional planned growth, that offers adequate purchase and rental options in all price points—not only to stabilize the market but to preserve and improve the quality of life for all residents.”
If you are considering listing your home in the coming year or would like more information about what it looks like to be a buyer in this market, please don’t hesitate to call us! We would love to listen to your questions and be a part of your planning for next steps!