May Market Report

May Market Report 2021

Right now, we have about five times more pending sales than we do active listings in Canyon County and Ada County. This is proof of many listings in the area, however, they get bought quickly for well over asking price and as a result, we currently have 3,600 pending sales but only 600 active listings. With so many offers pending, compared to actives, we might not be as under inventory as we think. At the moment, we have some properties that are lingering on the market for more than a weekend and they are not overpriced or in bad condition.

Ada County homes had accepted offers on them only 14 days after being listed, which is 36.4% quicker than in March 2021. Existing homes had accepted offers on them after only 10 days on the market, which is 28.6% faster than in March.

The quick pace of the real estate market is due to an insufficient supply of homes for sale compared to buyer demand, which made for almost 70% of homes that were sold for more than the listing price. The median sales price for homes was about $489,000, 2.8% more than the median sales price of March 2021.

Historically low mortgage rates due to the decline in inflation from the pandemic added to the home prices, as it enabled buyers to buy homes at higher prices than they could otherwise afford and add more competition to the market. Mortgage rates this month have remained relatively steady since April, although mortgage applications are up 24% from last year. The home loan 10-year yield is up to 1.68%, and the 30-year fixed rate was at a 3.1% average in April 2021, while in April 2020 the average was 3.3% and in April 2019 it was 41.%.

Newly built homes make up about 26% of inventory on the market. Construction on new homes reached a median sales price record of $469,000 in April of 2021, which was a 1.9% increase from March 2021’s median sales price. The high cost of lumber products has increased 28.8% since 2020 and is still increasing, pushing the cost of new homes higher as well. However, in the past few months, the lack of existing supply has made it so that new homes are on average less expensive than existing homes.

Not only are we seeing a lot of buyers unsatisfied right now, but on top of that, we are seeing buyer fatigue. Buyers are losing hope because they have looked at so many homes, made so many offers, and they’re not getting what they need. I want to encourage buyers to hang in there. You’re going to get your home, you just have to persist. We have begun to finally meet the needs of buyers and there is more inventory on the market that will last for more than a weekend. More inventory is coming!

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.