This last month was a flurry of extended snow days for our children, frigid temperatures, and slippery road conditions, which left many house hunters putting their plans on hold. Pending home sales were down 6.5% from January 2016, but were up 5.4% from last month’s numbers. In hopes of fairer weather spurring on greater buyer activity and increased prices, we are finding many sellers wanting to wait until spring to list their properties. This strategy is certainly contributing to our current low inventory problem, but may work, as prices are projected to rise over the next few months. It’s important to note, however, that the rate at which prices are rising has been slowing down, both nationally and locally.
Mortgage interest rate increases planned for later this year may also further the slow down in price appreciation. The interest rate for a 30-year mortgage is forecasted to reach 4.7% by the fourth quarter of 2017. This slowing of price increases doesn't mean prices are going down or equity is being lost, but rather that we may be headed toward a more balanced market, which certainly isn’t a bad thing. Inventory is still greatly needed in all price ranges, but especially among homes priced below $250,000. If you would like to discuss more about what prices are doing in your neighborhood, please give us a call!
Listed below are the current Ada County market statistics for January 2017 compared to January 2016:
- Closed sales - 547 (up 18.9%)
- Median Sales Price - $239,588 (up 0.8%)
- Days on the Market - 51 (down 23.9%)
- Pending Transactions - 1,037 (down 6.5%)
- Inventory: 1,425 (down 15.9%)
- Months of Supply - 2.1 (down 19.2%)
We also wanted to show how the number of months’ supply of inventory fluctuates based on the price range. The current months’ supply condition in each price range is as follows:
- $159,999 or less: 15 days
- $160,000 - 199,999: 18 days
- $200,000 - $249,499: 1 month, 24 days
- $250,000 - $299,999: 2 months, 15 days
- $300,000 - 399,999: 3 months, 12 days
- $400,000 - 499,999: 3 months, 9 days
- $500,000 - 699,999: 4 months, 9 days
- $700,000 - $999,999: 10 months, 6 days
If you’re interested in knowing more about the current state of the market, check out these informative January 2016 Boise Regional Realtors Market Reports for both Ada and Canyon Counties.