Millennials and Home Buying

With the real estate market slowing down from its wild pandemic highs, people’s attention has shifted to the next generation of home-buyers; Millennials. Born between 1981 and 1996, Millennials now make up 43% of our nation’s home-buyers, more than any other current generation.

There was a dramatic increase of Millennial home-buyers that joined the market in 2022, a 37% increase from 2021. Many Millennials previously postponed buying houses for many different reasons, two of which included student loan debt and not earning enough money to afford what they wanted in the current housing market. Millennials are also inheriting wealth from their parents and grandparents in older generations, giving them more money to spend on a home.

Generation X, the group born between 1965 and 1980, is the most likely generation to buy the more expensive homes on the real estate market. Many of this generation have put aside money throughout the years and were also less affected by the Recession in the early 2000s, making it easier for them to afford the house of their dreams. Many in Generation X bought affordable homes that kept close to their budget and generally chose smaller homes since they no longer had family living with them; while Millennials with families purchased larger homes.

Younger Millennials are often buying cheaper homes and waiting longer to purchase them, saving money and paying off their debts while they wait. These Millennials are also starting families later in life, lessening the need for a home of their own. Many of this generation rent for years before looking into buying their first home.

The real estate market has changed over the years to stay up with the growing usage of technology in business, and Millennials take full advantage of it. 1 in 3 Millennials used a website or online app to find their homes in the past few years, and some bought their homes online without having seen them in person.

With so many people continuing to work from home, many buyers in the past few years bought houses in suburban or small-town areas, and it seems big cities are no longer the top places to live in the U.S. Younger home-buyers, such as Millennials, moved shorter distances away from where they previously lived and older generations often moved further to be near family and friends. Most buyers expect to live in their new homes for around 10-12 years.

If you’re in the Millennial generation and looking to buy your first home, we are at your service! We can help you find the house that will be perfect for you and your family and well within your budget.

Spring 2022: Market Report

Spring 2022 increased activity to the Treasure Valley Real Estate Market and all of us at TVPM. People are getting their homes ready to sell, putting in new floors, cleaning out their garages, and preparing to buy a new home this year.

Ada County’s median sales price hit $575,000 in the last month, and the median sales price of Canyon County was around $453,000. Ada County increased 22.6% compared to March of 2021, and Canyon County increased 18.3% year-over-year in March 2022. On average, homes are selling for a lower amount over the listing price than they had been this time last year, which is a good sign as prices continue to settle down.

About a third of the total housing sales during March 2022 were new construction homes with a median sales price of $606,050. Existing homes sold for a median sales price of $555,000.

Inventory in the Treasure Valley is slowly increasing, with a 103.1% growth since this month last year. New construction starts are adding numbers to the tight inventory, with close to 1.77 million homes starting across the country in February 2022. Since then, the number of new starts has slowed, but the number of existing-home sales grew.

The number of days a home is on the market in Ada County has dropped since February 2022, bringing the average number to 15 days. This is the shortest average we’ve seen since the summer of 2021, and the Spring real estate market may reach high competition.

Mortgage rates have been higher in March 2022 than in previous months. There is a prediction among economists that this rise in mortgage rates will enable home prices to finally even out. Mortgage applications, however, are lower; during February they fell 5.4% and during the second week of March they fell a further 1.2%.

Millennials are the next big group of homebuyers that we’ll be seeing in the marketplace. Millennials are inheriting money from their Baby Boomer parents and many millennials surveyed said they’re waiting to buy a home- they are paying off their debt and saving for a bigger down payment for their future home.

With the rising prices and competition in the housing market, it’s no wonder that many millennials are waiting to buy a home. But their day is coming.

We at TVPM are willing to help you navigate these new times in the housing market and find the perfect home for you and your loved ones.

February 2022: Market Report

Market Report For February 2022:

The Treasure Valley housing market experienced some interesting highs and lows in the first few weeks of 2022. Homes in Ada County sold for a median sales price of $540,000 and homes in Canyon County sold for a median price of $424,900. Most houses on the market are bought up quickly, although they are not selling as fast as in 2021.

Inventory is currently lower than expected, as interest rates have raised. Buying a home is less affordable for most Americans at this time, but with the approach of Spring, more people may be able to put their house on the market, increasing the inventory and bringing down the inflated real estate prices.

Mortgage applications increased in the past few weeks, rising 2.3% in the middle of January and 12% during the last week of January. The number of refinance applications grew 18% at the end of the month, but the percentage is lower than in January of 2021. The Treasure Valley housing market is still calming down from the quick pace it saw in 2021.

Construction spending also grew in the Treasure Valley, up 9% since December 2020. Lumber prices are dropping back to more normal rates, and builders are in high demand due to the continued lack of inventory on the market. Building permits increased and many new homes started last month. New homes were over one-third of the housing inventory at the end of December.

Jobs openings across the country multiplied at the end of December 2021, with 10.9 million jobs available and jobless claims dropping to 1.63 million at the end of January 2022. Average hourly earnings grew 0.7% in the past month.

With Spring on the approach, we at TVPM are busy helping people ready their houses for the market. We do our utmost best to help our clients sell and buy homes for the best possible prices, and we can help you find the perfect house for your needs.

January 2022: Market Report

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.

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.