Housing Market Update for July 2023
Dave: Hey, Dave Edwards, Treasure Valley Dave; thanks for stopping in. We’re here in Nampa, Idaho, and we’ve got our market update for July 2023. I’m sure there’s a lot of exciting things going on. Well, Mareen, how exciting are things?
Mareen: It is exciting. I can’t believe it’s already July — the second half of the year.
Dave: Oh my gosh. How did that happen?
Mareen: I know. Kids are returning to school, which we should see in the market — even now.
Dave: So when kids leave school, is it usually when we see prices go up?
Mareen: That’s when we see prices go up precisely. And now they must be already in the school or at least registered, so we should see a slight slowdown.
Dave: Typically. But we live in 2023 BC. No, AC — After COVID? Ah, whatever. Things are different now.
Mareen: It’s been different for the last three-and-a-half years. So it’s been an unpredictable market, with changes, and we need to adjust to the current situation.
We had a very slight spring market. It’s less significant than we saw it do… What did we say? BC?
Dave: BC.
Mareen: Okay, there we go. The last time we saw a regular market was then.
Dave: So, let’s talk about the long-term. Your charts go as far as 25 years ago, so people can get on here and look at different data points that go way back. And that’s pretty cool.
I see this blue line here: prices went up, and then they came down, and then they went up a little, and pretty much went straight across. It reminds me of one of those TV shows in a doctor’s office where the guy’s heart thing goes, beep, beep. But that’s different from our market.
Mareen: No.
Ongoing Housing Demand
Dave: Is there still demand going on?
Mareen: There is still demand, and in the last couple of weeks, we have more going on than we had during the spring market.
Dave: Really?
Mareen: I would say so.
Dave: Huh. But interest rates haven’t come down?
Mareen: Nope, they have not come down. It is tricky, but good programs exist, especially for new construction. That’s something to take advantage of: new construction. That’s where our inventory is; that’s where you can get the best deals right now, especially in categories that are under $500,000.
Dave: Okay.
Mareen: Even under $400,000.
Dave: So, you said new construction. I guess that means there’s not that many existing homes in inventory.
Fewer Existing Homes Available
Mareen: Not that many. And if there are, they go very quickly. The average time on the market is anywhere between 23 to 35 days on the market. That is quick.
Dave: Traditionally, they taught us in real estate school that six months is the borderline between buyers’ and sellers’ markets.
Mareen: Yes.
Dave: And you’re still saying weeks.
Mareen: We are for sure looking at weeks, yes. You can sell your house if you have an existing home. And if your price is right, and it’s a good home, then people can have an FHA or VA loan on those homes. If it’s not just a fixer-upper, you can sell your house quickly, especially under $500,000. Under $400,000, it goes very fast.
Home Median Prices
Dave: So, you’re talking about price. What are prices doing?
Mareen: It’s interesting. So, it’s pretty steady. It has stayed mostly the same. In Canyon County, for the past couple of months, it’s been sitting right around $400,000. Yeah, $410,000, $405,000. It has stayed the same in median home prices.
Dave: I see by your numbers that it’s come down just…
Mareen: A hundred dollars.
Dave: Hundred dollars, wow. Well, if you guys are—
Mareen: It’s something.
Dave: If you guys are looking for a sign to get off the mark and buy a house, you just saved a hundred bucks.
Selling a House
Mareen: The most exciting thing that happened in Canyon County was that we have a meager inventory. Last month, a lot of homes got picked up. There were a few days when interest rates came down, and then new construction came. Those builders have beautiful plans that allow you to get $15,000 or $10,000 to $25,000 in concessions, buy down interest rates, help with closing costs, etc.
As for our pending numbers (meaning homes that went under contract in July), we saw an increase in that. Less were sold before, but next month, as you’ll see on our following chart, we will see an increase in sold properties. A lot of homes got picked up in July.
Housing Market Forecast
Dave: Well, speaking of the future, what does the future hold for our market?
Mareen: It’s a beautiful time.
Dave: To…?
Mareen: To buy.
Dave: And to sell?
Mareen: And to sell. Yes, it’s always the time.
Dave: Even with these scary interest rates?
Mareen: It depends on what your situation is. What do you want to do? Where do you need to go? Do you have to sell? Or do you need to go bigger? Do you need to go smaller? Do you need to leave the state? It’s essential to sell if you are away.
Dave: Right.
Mareen: It depends.
Why Are People Moving to Idaho?
Dave: So, I’m still seeing a lot of interest from people out of state, you know, like California. Because it’s not just economics that goes into the equation of “Should I move or not?” or “Should I wait to buy?” Sometimes it’s the quality of life.
Mareen: It’s mostly quality of life.
Dave: And I’ve seen your pictures on Facebook, and you have a quality of life.
Mareen: I do. I enjoy it quite a bit, yes.
Dave: Nice!
Mareen: And I don’t mind sharing it, so if you have a question, let me know.
Dave: That’s right.
Mareen: Yeah.
Dave: Because you have experience with kids, schools, and Eagle, where they have the river and all sorts of fun stuff to do in the summer.
Mareen: Yeah. And I always thought I had a good place in SoCal, but this is better here.
Dave: Yeah.
Mareen: It is much better here, yeah.
Dave: Nice. Are there any last things we should consider before we get out of here and start working on August?
Idaho Home Builders Increase the Inventory
Mareen: Last month, we discussed how the inventory should increase because of the higher interest rates and home builders cramping up their buildings. Especially our production builders, they’re trying to get ready for the wave.
The builders are typically the ones that have the pulse on the market. They know what’s been happening and how many lots are going and selling. And there are production builders that are ramping up and trying to get inventory on the market when it gets busy. If interest rates drop, all that demand holding back right now will return.
Dave: Right.
Mareen: And…
Dave: And the law of supply and demand.
Mareen: We know what happens.
Dave: Prices will go up.
Mareen: Exactly, so…
Dave: Well, you’re talking about the big builders knowing what’s happening because they’re no dummies. But CBH had a hiring event recently where they’re hiring many people.
Mareen: Yes. We must be honest: they had to lay off a few people, and they’re hiring again. They are adjusting to the market and seeing that we need more inventory.
Dave: Very nice.
Want to Move to Nampa?
So if you have any questions about the housing market, please call us. Mareen is like the bomb when it comes to this. As always, Treasure Valley Dave, looking forward to helping you get home.
