May Market Report
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!