Holiday Season Market Report

Holiday Season Market Report for 2021

The colder months and holiday season have brought about the expected annual slowdown in market sales. Homes are taking longer to sell, mortgage rates have leveled and stabilized, the unemployment rate is the lowest it’s been in many years, and the number of available homes for sale is also stable.

New home sales rose in Idaho at the beginning of September, but pending home sales dropped 2.3% month-over-month at the same time. Ada County’s median sales price in October was $534,950 with a 0.2% decrease from September. In Canyon County, the median sales price was $422,455.

Prices are up between 28% and 30% in both counties this year compared to 2020. Across the nation, the median sales price was $352,800, making November the third consecutive month with declining home prices.

Inflation rose in the past few months. Existing home sales are stable and there are more investors in the market. Homes are taking longer to sell, around 23-26 days, which is slower than the 19 days it took in October. Slower selling times are allowing buyers more time to make decisions, and with a better inventory, there are more options. Buyers get to ask for repairs and they are not waiving appraisals.

With 2022 just around the corner, many wonder what the new year’s real estate market will hold. Inventory is predicted to increase, mortgage rates will potentially rise, and home values may grow by a small percentage. All these are only predictions; we shall have to see what the year 2022 will bring to the Treasure Valley real estate market.

The TVPM team wishes you all a Merry Christmas and a Happy New Year, and we hope to see you in 2022!

October Market Report

October Market Report 2021

Fall is here, and the Treasure Valley is experiencing its seasonal slowdown. Home values have gone up 27.5% since the beginning of the year, the housing inventory is slowly catching up to demand, and the jobless claims fell to the lowest levels seen since March 2020. The housing market’s fierce competition is still predicted to even out by the end of the year.

September 2021 saw a 4.5% gain in inventory, making it the sixth consecutive month in inventory growth. We hope that inventory levels rise slowly so that prices do not drop from an overabundance of housing, but instead gradually even out so the market is balanced. Currently, the inventory levels appear to be doing just that, as we had 650 new homes on the market in July, 850 in August, and 888 in September, a steady rise to 1,300.

Ada County’s median home sales price was $534,950, 0.8% of an increase from August’s median home sales price of $530,500. The number of homes that sold for more than the listing price dropped to 33.1%, the lowest percentage seen since 2020.

The average number of days a house is on the market before an offer is accepted is 17 days. That is the longest time a home has spent on the market in over a year. However, September 2021 showed existing or resale homes spent 21 days on the market, which is the quickest market time for resales since April of 2021.

Mortgage rates and applications have bounced back and forth this October, increasing and decreasing week-to-week. Mortgage applications in the past week gained 0.2%.

Consumer prices rose higher than expected in September due to inflation. The inflation levels rose 3.6% in August and are expected to raise home prices, interest, and mortgage rates. Higher prices are causing problems with some contracts being delayed or falling through, but most sales continue to have no problem.

Jobless claims are falling at a steady pace, helping to even out the job economy further. Experts predict that 2022 will bring growth to the real estate market and that home values will continue to level out. The fierce competition we saw over the past year pushed housing prices higher but also increased inventory as more sellers came on the market. We’re hopeful that the increased inventory will even out with the demand and ensure that you can find the house you need this Fall.


(image graphic made with Canva)

September Market Report

September Market Report 2021

We anticipate the Treasure Valley housing market to have a busy Fall season with many more homes going up for sale, helping to bring down the increased prices from lack of inventory. Home buyers will have time to slow down and think through their buying decisions, helping them buy the homes they want and stopping the fierce bidding wars that defined the housing market in the past year.

The housing market does still have more potential buyers than it has homes for sale, however, the economy does appear to be evening out. August 2021 marked the fifth consecutive month of inventory growth and gained 0.7% in retail sales, rather than the predicted 0.8% decline. The housing market’s high competition is slowing down.

Housing prices rose 5.3% in August 2021 compared to August 2020 and had a significantly lower value than the expected increase of inflation. As a result, the mortgage rates are kept low with a decrease of 1.9% during the first week of September. Mortgage applications also rose by 7%, making the highest jump since April 2021.

Ada County’s median home sales price during August 2021 was $530,000, a drastic drop of almost $10,000 from July 2021’s median sales price. Over 1,124 homes are up for sale in the county, the inventory up 6.5% from July 2021. There are around two months of inventory on the market right now and the preferred number is around five months.

Homes prices nationally hit an all-time high in August and prices have increased 8.6% year-over-year in that month alone. In July 2021, consumer credit increased 4.7% and job openings hit a record high of 10.9 million.

With the current market conditions and the slowly evening out economy, your home should sell within a few weeks and you’ll be able to carefully think through your next buy and get the house you’ve always dreamed of.

August Market Report

August Market Report 2021

The Treasure Valley housing market’s inventory, while still low compared to previous years, is at the highest point it has been in the past few months. New home sales have decreased by over 6%, and pending sales were down 18% this month compared to the end of July 2021. This was possibly due to the fact that the median price of properties sold in July was 43% higher than the median sale prices back in July of 2020. As a result of the slowed-down sales, inventory crept up to 19%, although we are still far from an oversupplied market due to the inventory being still far below pre-pandemic levels.

As a result of the median home prices rising higher and higher, the inventory of homes being placed on the market increased in the past few months, reaching an inventory point not seen since before March of 2020. The housing market at the end of June 2021 had 729 existing homes ready to buy which was up over 50% since the previous month. The housing market continues to move quickly, as the average days on the market that a home for sale has is about 13 days.

The median sales price in Ada County reached $540,000, which was 2.9% more than in June 2021, and there were over 1,055 homes on the market which is up 44.7% since June 2021. In Canyon County, the median sales price was $414,750 and there were over 600 homes in the inventory.

The average mortgage rates remain much as they have for the past month, although mortgage applications have risen by 2.8% in the past few weeks due to the rise in jobs. Job openings reached 10.1 million in June alone, and that number continues to rise. The demand for products is greater than the availability of workers, but with the continuation of hirings and the current confidence in the job economy, the demand imbalance should even out soon.

With the housing market inventory continuing to even out alongside the economy, the possibility for you to find the perfect home to buy is even better than before, and we are here to help you in any way that we can.

July Market Report

July Market Report 2021

In the Treasure Valley during the month of July, mortgage rates and applications dropped, jobs increased, consumer credit surged, and construction spending dropped significantly.

Mortgage rates dropped to a composite 1.8%, the lowest level in five months, and mortgage applications slowed for both existing home refinances and new purchases.

Job openings increased to a new high, over 215,000 for small businesses and 692,000 for private-sector companies, and layoffs and discharges hit a low of 0.9%.

Consumer credit surged 10% back in May 2021, and pending home sales hit a high level-up 8% month-over-month. The median sales price for homes in Ada County reached $525,000 in June, although the home inventory is growing steadily to match the demand.

Construction spending dropped in the Treasure Valley during May 2021. However, construction spending is up 7.5% compared to previous years. The lumber shortage is so desperate that many homes sit unfinished for months while contractors wait for materials they can afford and will work for their projects. Wood and other available resources are highly overpriced and can be triple what they cost pre-2020.

Even pre-2020, back in 2019, contractors had a difficult time obtaining skilled workers for their projects. As a result, skilled construction workers charge more for their services, which raises the total cost for new home buyers.

Contractors have to hold off on building new homes due to both the prices and lack of skilled labor. The demand for new homes is so high that homes need to be built, but the high costs aren’t worth it to many builders as much of the extra cost is taken from their pockets. High overhead costs from skilled labor and scarce materials make it so the builders pay more without getting it back in revenue.

The market is continuing to balance equal inventory with demand, and with the increase in jobs, the economy will balance out as well. With a steady economy and workers, the material prices for building will go down again, and contractors will be able to finish their projects, helping new home prices go back down and balancing the housing market. You can buy a home with the higher inventory we have right now on the market without multiple offers involved, and the need to increase your own offer is going away for now. The perfect home is waiting out there for you, and we can help you find it.

June Market Report

June Market Report 2021

The Treasure Valley housing market is still moving at a quick pace, but it is slowing down compared to how quickly it was moving during January through April. We now have more homes on the market, up to 800 as of today, and the majority are not selling in a weekend like they were only a few months ago. Some of this is most likely due to buyer fatigue, buyers who are worn out after losing so many offers.

Another reason why we might be seeing homes stay on the market for longer than they had been previously is because they are priced too high. Homes need to be put on the market at appraisal value. If it sells for more then that’s great news for the seller, but it still needs to be priced correctly and fairly.

We still have many homes pending on the market, between 2,700 and 3,000 any given day. This alone shows us that we’ve had many homes on the market and that inventory is not suffering as much as some would think. Still, active listings are higher than they’ve ever been, and consumer prices were up 5% year over year in May of 2021. The amount of houses on the market is improving in many states across the country, and Idaho has gained 15% inventory just in the past month.

In Ada County, the median price for a sold home in May 2021 was around $523,250; that’s up 30% from May of 2020 when the median stayed at around $360,000. It is the first time the median price in Idaho crossed the $500,000 mark, and it has gone up significantly from the $481,208 median in April of 2021.

In Canyon County, the median price in May of 2021 was at $410,000, up 48% from May of 2020. The price crossed the $400,000 mark for the first time in that county. The Treasure Valley is experiencing the sharpest rise in one month since January of 2020. While the prices are rising quickly, the time it takes to sell them is slowing down. The national housing market prices are also rising, although the Treasure Valley’s prices are at a higher level.

If you are planning to purchase a house in these market conditions, make sure you get preapproved for a mortgage, make a good money deposit, be ready to bid, and be patient and flexible. There’s a perfect home on the market for you and we’ll help you find it.

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.