The Boise Housing Market got jump started in February! We saw interest rates drop to below 6% near the end of January, causing a flurry of buyers to jump in. That is reflected in large increase in number of homes sold in February compared to January. And that spurred the return of… multiple offers in the Boise Housing Market again (Gasp!) How can that be, with high prices and higher rates??? Well, even though our inventory is higher than it was last year at this time, it is still low! Especially when you narrow it down to what a client wants, and homes that show well and are priced right!
And then rates inched back to 7% again by the end of February! So far, that has just increased the buyer activity in the Boise Housing Market! Why? People are concerned about rates going even higher later this year. Experts have predicted rates both going up and coming down, so I am not sure where they will end up by this summer, but I do know that if rates do drop, based on what happened at the end of January, buyers will jump in, and with inventory being low, it could cause more multiple offers! (I hope not, but it is certainly a surprise to us all that we are seeing them again).
That being said, there are still builders with land to sell and have great incentives on build jobs, including buying down your rate to as low as 4.99% and locking it in while you build, and homes where sellers have overpriced them so they are on the market a long time, and if seller is realistic and motivated, you could get a good deal, or at lease help from them toward closing costs.
Here are some key takeaways and explanations from the monthly housing market data from each city:
Most areas saw an increase in number of sold.
Most areas saw a decrease in days on market.
Except Kuna and Eagle. Whoa, Kuna! What happened?
Kuna’s sales were dominated by new construction homes with builders who list before the house is built or during the build process, accumulating long days on market, skewing the data.
And Star had a 28% increase in prices! That was due to several homes over $1mil selling in January, raising that median sales price.
And again, Middleton with the low days on market…that is due to the majority of the sales being Toll Brother build jobs, and they don’t put the house on the MLS until it closes, showing 0 days on market, and skewing the data down.
And let’s welcome Emmett to the line up! Their data is pretty sensitive to change since they have low number of sales, but it will be interesting to their market too!
Make sure you give us a call for a consultation on if it is the right time for you to buy or sell in the Boise Housing Market! Don’t make assumptions based on what the media is saying and let us help you figure out the right choice for you personally. There are a lot more factors that go into buying and selling a home besides just interest rates!