Fall is here! Although I think spring will always my favorite season, autumn in Boise is a very close second. Fall colors, sweaters and scarves, a new school year, delicious soups, and cooler temperatures are all something to celebrate!
As the weather cools, so does the housing market. This is often a welcome relief from the hustle and bustle of spring and summer real estate activity. This slowdown presents positives and negatives for both buyers and sellers. Since there are fewer buyers, those looking for a home generally experience the joy of lesser buyer competition and fewer multiple offer situations. On the flip side though, however, a slower market also means slower listing activity, which results in less housing inventory and limited buyer options. For sellers, fewer buyers can mean less showing activity and a greater number of days on the market before receiving an offer. But, fewer listings reduce competition among sellers, giving the limited homes available a better chance to sell. If a house is priced well and properly prepared to sell, it can create quite a bit of competition between buyers who are pining for a good house amidst limited options. This is especially evident for homes priced less than $200,000, where there is only 1 month’s supply of inventory. Sellers in this category are certainly reaping the benefits of a tighter and slower market. This has helped keep the market strong despite lower real estate activity.
Further proof that the market remains strong are the Ada County market statistics given below. The median sales price was up 10% from August of last year! Pending transactions were also up 18% from last year and closed sales were up 21%. These factors, as well as the still low interest rates and relatively strong employment figures, are good for both buyers and sellers. If you’re considering making a move, we would love to meet with you to discuss the positive and negative aspects of the fall real estate market and to help you determine if now is the right time for you buy or sell. Also, a good lender can assist in your “information gathering phase” by looking at your unique situation, informing you of the financial options available, and discussing the costs. If you need a referral for a reliable lender, HERE are some we recommend and work with frequently.
If you are curious to know what your home is worth or to better understand the advantages of buying in a slower market, please give us a call!
Here are current Ada County market statistics for the month of August 2016 compared to August 2015:
- Closed sales - 1,017 (up 20.9%)
- Median Sales Price - $253,000 (up 10.0%)
- Days on the Market - 35 (down 22.2%)
- Pending Transactions - 1,511 (up 18.1%)
- Inventory – 2,254 (down 10.0%)
- Months of Supply - 2.2 (down 18.5%)
We also wanted to show how the number of months supply of inventory fluctuates based on the price range. The current month’s supply condition in each price range is as follow:
- $159,999 or less - 199,999: 1 month
- $200,000 - 299,999: 2 months
- $300,000 - 499,999: 2.5 months
- $500,000 - 699,999: 3 months
- $700,000 - 999,999: 5 months