Market Report for January, 2022:
It’s now 2022, and the Treasure Valley Real Estate market is on a roll after the holidays. The 2021 housing market was one of the fastest-paced that we’ve seen in recent history and housing sales were competitive. So far, it appears that 2022 will be another market year of competitive buyers and sellers, higher mortgage rates, and a lower inventory compared to demand.
The median sales price for Ada County at the end of 2021 was $546,000 and was an increase of 1.5% from November 2021. Canyon County’s median sales price was $419,480 at the end of the year, up 2.3% from November 2021.
Pending home sales are up 20% year-over-year, inventory is increasing slowly to make for a more balanced market. There were 582 homes available for sale at the end of December 2021, which was 75.8% more than in December 2020. The monthly supply for the Treasure Valley was originally 0.7 months but has now reached 0.5 months, a positive increase.
Due to the decrease in building supplies over the past months, newly built homes are selling for higher prices and there are fewer being built; a 21.7% decline. Buyers are waiting longer to move into their houses; the number of days from when a new home is under contract and when it can close is around 106 days, which is a month longer than in 2020. Many buyers would rather buy an existing house than wait for a newly built one.
Consumer inflation in December 2021 rose 7% and purchase applications rose 2% in the past week. Mortgage rates are edging higher, making home buyers more nervous to buy. The rising rates are not expected to slow down the market, there will still be competition in the real estate market and sales may grow over 6%.
If you are planning to sell your house in 2022 and want to prepare it for the market, here are a few things you can do to help prepare for a competitive market. Clean up the yard and put new plants that work well in your area in the planters. Rearrange your furniture to make the most use of the space in your home, update the hardware in the cupboards and doors, get a fresh coat of paint, and clean from top to bottom.
Don’t be afraid of the real estate market in 2022! We at TVPM are here to help you in any way we can with selling and buying what’s right for you.