Happy December! Can you believe we are at the end of 2022 already?
First, we want to give a huge Thank You to all of you who have trusted us to help you make the Boise, Idaho area your new home. 2022 has been a whirlwind of a year, and we are looking forward to welcoming many more of you in 2023!
The Boise housing market hasn’t changed much since last month, but a few key takeaways for you. Just as I said in the November Boise housing market report, we are in a stagnant pattern with sellers holding onto higher prices unless they are highly motivated, and buyers are hesitating to buy, even though the interest rates are creeping downward as of right now. Last month, interest rates peaked at above 7%, and today they are averaging just below 6.5% for a conventional loan.
We can see the effects of that peak in interest rates in our Boise housing market sales data for November. You can check out my Instagram or Facebook post to see the market data numbers for each city in the Treasure Valley, but overall, days on market increased, sales prices decreased, and number of homes sold also decreased.
That being said, finally, the Boise housing market’s month over month and year over year median sales price has dropped to below the previous month and the previous year. It was $525,000, 2.5% lower than November 2021, and 6.5% lower than last month. (Ada County) This is an improvement for home buyers, and not bad for home sellers, as they are still typically walking away with lots of equity, but we do have some interesting patterns showing up.
The homes that are under the median price point, those homes under $550k or so, especially new construction homes, are losing more value, sellers and builders are having larger price drops and are offering more incentives, as that is the price point most affected by those who get financing or investors who are hesitant to buy in the Boise housing market right now.
But certain homes- homes that appeal to retired cash buyers, which is typically more expensive, custom, existing homes in certain areas of town- they are hanging on to their higher prices as the inventory is very low, and the demand, although not a lot if it, is still higher than supply. So it will be interesting to see if, in 2023, that submarket of homes hangs onto higher prices, or if they start to follow the rest of the trend and drop more as well.
In January 2023, which is crazy that it’s in a couple of weeks, I’ll revisit my 2022 predictions, see if I was correct on any of them, and let you know what may happen with the Boise housing market in 2022. But, for now, let’s take a rest in the peace of Christmas for the rest of the year, and just enjoy our blessings.
We wish you the Happiest of Holiday, the Merriest of Christmas’, and hope you make time to find stillness and peace in this winter season.
