Welcome, everyone! I’m Dave Edwards, Treasure Valley Dave in Nampa, Idaho with Mareen. We’re here to assist you with selling, buying, or relocating to the Treasure Valley. Today, we have an exciting Idaho housing market update to share, along with our opinions and expectations.
Let’s dive into what we’ve observed in the market this year and what we predict for 2024. But first…
Looking Back to the Housing Market This Year
Starting with January 2023, there were fears of a market crash, but interestingly, the inventory was still very high.
By May, we reached the peak of the housing market activity. Traditionally, most buying and selling happens in May, but this year was different. Builders were cautious with their inventory, and sellers started holding back because of rising interest rates, creating a natural market curve. Spring was bustling, but then the pace slowed down.
It’s important to note that comparing this year to the last is not straightforward, given the pandemic’s impact. Looking back at pre-COVID years like 2019 provides a better benchmark. Overall, we had a somewhat average year, with slightly less inventory and sales than 2019. But the usual seasonal trends were still evident.
We often hear experts on platforms like YouTube making housing market predictions, but it’s crucial to consider each year’s unique conditions. Despite the higher interest rates this year, the market showed resilience. That’s especially true for the higher-end homes, where we saw significant price adjustments.
Treasure Valley Dave's Housing Market Experience
On a personal note, I sold my standard CBH home, which had accumulated substantial equity. The house we’re in had been on the market for over 300 days, initially priced at around $900,000.
But as real estate agents, we know the market well and secured this house at a great deal. It demonstrates the opportunities available in the current market, especially for those looking to ‘rightsize’ and leverage their home equity.
Median Home Prices Forecast
Discussing market pricing trends, the median home prices remained stable year-over-year despite fears of a crash. For example, comparing November of last year to this year, the prices were almost identical, dispelling the crash myth.
In specific areas like Canyon and Ada Counties, we observed different trends, with varying median home prices, emphasizing the need to understand local market conditions. The median home prices significantly differed in places like Boise, Caldwell, Canyon County, Kuna, and Ada County.
Affordability and understanding the real estate trends remain complex issues. Different regions, like Eagle, showed fluctuations in median home prices, highlighting the diverse nature of the market. The importance of affordability and finding the right lender to navigate these conditions must be addressed.
Purchases and Mortgages
As for the market’s seasonality, we’re seeing a return to standard patterns. Recent data from the Mortgage Bankers Association and Fannie Mae surveys reveal exciting trends in purchase and refinance mortgage applications, suggesting a gradual market stabilization.
Looking ahead to 2024, an election year, we anticipate potential changes in the market. Historical trends show that election years often shift the real estate landscape. However, the impact of these changes varies widely.
In conclusion, the real estate market is multifaceted, and decisions should be based on individual needs and circumstances. Whether moving, buying for the first time, or refinancing, working with a team that understands your goals is essential.
We wish everyone a fantastic end to 2023, and we’re here to support you in all your real estate endeavors in the Treasure Valley.