April Market Report

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.

March Market Report

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.