Boise Home Prices mixed Recovery July 2023

Hey everyone, home prices in Ada County have continued their recovery, but Canyon County didn't fare quite so well. And real quick, my name is Curtis Chism with the Chism team. If you're looking to make a move, just give me a call, text, or email, and let's chat. Or if you know someone looking to buy, pass this video on to them and have them give me a call.

Now, before we dive into home prices, let's take a look at what's driving home prices, and that is inflation and mortgage rates. Now, rates, of course, shot up over the past year but have generally stabilized over the past four months. Now, this happened not only because the Fed was hiking interest rates, but also because of how high inflation was. Mortgage rates are directly tied to inflation, and when inflation was at nine percent a year ago, mortgage rates had to catch up to that number. Now, rates have generally been sitting right around the high six percent mark for several months. Now, as inflation continues to get under control, mortgage rates should eventually follow. That inflation fell again this past month to three percent and has been falling rapidly each month. The FED does keep hiking interest rates, so mortgage rates are still hanging out around that seven percent mark. But mortgage rates should gradually start to come down as inflation comes down, and buyers seem to have indicated they're okay with those high six and low seven percent rates and have been fueling a rapid rise in home prices overall.

So, let's get after home prices here in Boise. Housing prices rose modestly by ten thousand dollars this past month to five hundred and forty-five thousand dollars. Now, home prices had dropped by 20% in Ada County, but after three months of recovering home prices, we're just eight percent below the market high, six hundred and two thousand dollars, that we hit back in May of 2022. Existing resale homes actually fared very well with an increase of thirty thousand dollars to five hundred and forty thousand dollars. The much more volatile pricing of new construction dropped from six hundred and six thousand dollars to five hundred and fifty-seven thousand dollars.

Existing resale homes in Canyon County fell this past month from four hundred thousand to three hundred and eighty-nine thousand dollars, and new construction was flat with a median price of four hundred and thirty-four thousand dollars.

Now, the inventory of homes has risen ever so slightly, and we have a two-month supply of homes available to sell, which is still an incredibly low number. Sitting at 1300 homes in Ada County and just 1.8 months supply in Canyon with 740 homes available. The amount of time that homes are taking to sell has been getting faster and is averaging just 21 days on the market for resale homes in Boise and 33 days in Canyon County.

And the other big data point that I like to look at is the final sales to list price percentage. This tells us how much above or below the list price that homes on average sold for. So, if on average, the final sales price is 98% of the original list price, that's considered a balanced market. Anything over indicates a seller's market, and below is a buyer's market. Here in the Boise area, Ada County, we're at 98.5% final sales to list price, and Canyon is sitting right at about 99%, showing us that we're essentially in a balanced market in both counties, meaning it's really not favoring buyers or sellers overall right now. Now, I'd say overall, it's edging favoring buyers.

What does this mean for you if you're thinking about buying a home? Well, many people like to try to time the market perfectly, but this just isn't really possible. So, we have gone through a market correction this past year, and housing prices bottomed out in Ada County several months ago and are wavering a bit in Canyon. In Ada, home prices are certainly well on their way to recover, and we do need a specific strategy for each home that you're interested in buying. So, for some homes, you might be the only bidder on it, and for others, you may be up against several other offers. So, the strategy could involve going in with a very clean full-price offer, over-ask price, or coming in and asking for credits to cover your closing costs or asking for repair work to be done. And that's how I can help you navigate the buying process here in the Boise area, is to help you analyze each home, come up with a specific strategy needed, and negotiate to help you buy your next home. So, just give me a call, text, or email to get started.

Now, if you are planning to sell a home, we really need to take a good look at your home and come up with the right strategy to successfully market and sell your home. So, just like for buyers, every home is unique and has its own strengths and weaknesses. So, sometimes a home needs a lot of repairs, remodeling, upgrades prior to hitting the market, like paint, carpet, landscaping, roofing work, and other times it just needs to be decluttered and thoroughly cleaned.

Now, as we head into what I would call a balanced plus market, you may need to plan to do some repairs that come up on the buyer's inspections or give credits to help a homebuyer buy down the interest rate to secure the home. And that's why it's really more important than ever that you give me a call, so we can put together a customized plan to sell your home on the best terms that you're looking for. We'll make sure we don't overprice the home, causing it to sit for months. Instead, we'll price it with my proven pricing strategy to generate tons of traffic online, which will turn into showings, offers, and hopefully a bidding war. And then that will give you the leverage that you need to get the price and the terms that you want.

If you are wanting to get an idea of what your home may sell for and what it should be priced at, just contact me today, and I'll run a no-obligation home valuation for you.

Well, that's a complete overview of the housing market here in the Treasure Valley. Just leave me a comment or email me back and let me know what you thought, and I'll see you on the next video.