Market Report for March 2021
Our real estate market is frantic for many home buyers and sellers right now, with insufficient inventory compared to the demand of home-buyers, a quicker on-the-market time than last year, and persistently low mortgage rates. Though mortgage rates show signs of weakness, these reasons combined gave Ada County a new median sales price of $454,000 for January 2021, while in January 2020 the median sales price was $363,000; totaling an increase of 25% in one year. In Canyon County there was a 32.2% increase in median prices; and the existing home median sales price in the area is $443,500, an increase of 30.4% from 2020.
With the increase in prices, some sellers have found greater equity in selling their houses now, but with the majority of buyers, there’s a decrease in affordable housing. However, a few buyers have found that the lower mortgage rates have raised their chances of affording houses despite the increase in home prices.
For the past several years, 34 days was the usual amount of time between when an offer on a house was accepted and the sale officially closed; and it was about 30 days between the two in January of 2020. However, as the 2020 market continued, the timeframe fell well below 30 days, as there was a large misperception of no inventory in the housing market, due to houses being bought within a month, which resulted in them not being listed in the monthly inventory of houses.
In 2015, a home seller could expect an offer on their house listing in about 40-43 days. 2020 brought that timeframe down to 17 days, and in 2021 the average timeframe is 13 days; 66.7% quicker than the same time last year. As a result of this sudden drop in time, many buyers submit full-price offers or more, raising the median sales again.
Many buyers also received stimulus checks, and as a result, retail prices jumped 5.3% as many of them used their stimulus checks to put towards home buying.
Building dropped in January of 2021 due to soaring lumber prices and labor shortages; building permits have gone up 10.4% however, so there is an expected housing increase in the next few months.
Right now the housing market is full of fierce bidding wars and home prices surging as 40% of potential buyers keep being outbid.