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)