Market Report for April 2021
After several months of gains for the Treasure Valley real estate market during the last part of 2020, the lack of inventory from the past year severely affected the market in April 2021, and there was a 10.6% drop in the number of homes for sale. There are technically two months of supply in the current housing market, while a healthy market would have at least 6 months’ supply. However, resale homes that have been on the market for more than 1-2 weeks are overpriced or in dire need of repair, and as they make up about 50% of the homes currently for sale, the real estate market actually only has about one month’s supply of good housing options.
Economists are predicting that prices and demand will not slow down within the foreseeable future, as homes are selling so fast that people worry if they can move forward, however, yes you can! We’ve got strategies, call us! We would love to help you “right size”. Investors are remaining optimistic about the recovering economy, and are hopeful that the housing market will recover with more inventory.
Unemployment rates have gone down to 6% in the past few weeks, according to the U.S. Labor Department, and nearly one million jobs opened up over the month of March. That’s good news for the housing market, as buyer and seller confidence has steadily gone up due to jobs opening up and the economy settling.
At the same time, mortgage applications slowed, and pending home sale counts fell in the month of March. Mortgage interest rates fell to a historic level low over the past year due to the panic of the pandemic and added to the overwhelming migration to the Treasure Valley. Interest rates are holding steady at 3%.
Buyer demand is lower now than it even was in May and June of 2020, however it is beginning to pick up again. Most homes receive multiple offers and for the first time in this area, resale per square feet is higher than in new homes.
Homes in the Treasure Valley have been on the market for about 20 days, for median prices of between $350,000-$450.000. There is still insufficient supply compared to buyer demand, but in some locations in the Treasure Valley it appears to be evening out. Competition is still high in the market, with homes selling quickly at least 10% or more over the listing price.