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August 2022 Market Report

According to our regional data source, Boise Regional Realtors, the median sales price for homes in Ada County was $565,000 in August, which is down 4.2% from July but 6.6% higher than August 2021. Higher home prices and interest rates have caused some buyers to make budget adjustments while others are sitting out for a bit, optimistic that at least one of those factors will come down.

Home prices are driven by supply and demand. Since many buyers are sitting on the fence, Sellers are responding by adjusting their prices according. This has caused the median sales price to come down from its peak of $602,250 in May.

One factor contributing to lower sold prices is the fact that buyers are typically paying less than list price. The average original list price received for existing homes in August was 94%, so on average, buyers paid less than asking through a lower accepted offer, price reductions, or seller concessions. To compare, a year ago the average original list price received was 99.8% with many properties closing over 100% of asking price.

While interest rates still pose a challenge, other market conditions have continued to move the right way for buyers — slower price growth, more options, and more time to decide before submitting an offer. Speaking of time, homes that sold in August spent an average of 29 days on the market before having an accepted offer, a much more normal market time compared to the 14 days average in August 2021. To compare, the last time the average DOM (days on market) was 29 was 2018.

Options abound with 2,374 homes available for purchase at the end of August, allowing buyers who were sidelined when the market was ultra-competitive to resume shopping for their next home. However, the current supply of homes is more nuanced than it appears at first glance.

We’re not out of the woods yet when it comes to inventory. Months Supply of Inventory, or MSI, is our best gauge on how well supply is keeping up with demand. MSI jumped up as demand cooled in recent months, but it held steady at 2.8 months in July and August. A balanced market, or one that doesn’t favor buyers or sellers, is typically 4-6 months of supply.

So, what does this mean for buyers and sellers?

According to the economists at Realtor.com, fall may be the best time to purchase a home, and this year is looking especially attractive since there are more options available, more time to make decisions, and home prices have trended down.

Homeowners are enjoying record high equity, and despite the recent decrease in home prices, sellers are still receiving great values for their homes. The market has normalized and isn’t nearly as competitive as it was in 2020 and 2021, so if you list your home for sale, don’t expect bidding wars, offers waiving all contingencies, and the home to go under contract within a few days. However, there are still things you can do to stand out.

 

If your curious if now is a good time for you or a loved one to buy or sell, ask me! I am always available to discuss your goals and answers any of your questions such as how I would market your listing, what’s my pricing strategy, and what incentives can we offer.