Shifting Market or Seasonal Fluctuations? Your Local Market Update

If you’re considering buying or selling a home in the Treasure Valley, understanding the current real estate market trends is essential to making an informed decision. Let’s explore the recent changes in inventory, interest rates, and market dynamics to help you navigate this landscape effectively.

Inventory Insights: A Two-Year Peak

Currently, Boise’s real estate inventory is at its highest level in the last two years, with 950 active listings. This increase, approximately 12% higher month over month, offers buyers a broader selection of homes, potentially easing the competition slightly. For sellers, understanding this trend is crucial as it might affect the speed at which your home sells and the negotiating power you might hold.

The Role of Interest Rates

Interest rates significantly influence real estate market dynamics. Recently, Boise experienced a peak in rates at around 7.5%, the highest in six months, which has temporarily slowed down some of the buying activities. However, rates have since adjusted to about 6.75%, reinvigorating interest among potential buyers. If you’re looking to buy, this slight relief in rates could be your signal to enter the market. Sellers should be aware that lower rates can increase buyer interest, possibly shortening the time your home stays on the market.

A Look Back at June 2022

Reflecting on June 2022 can provide context for today’s conditions. Back then, we saw a 2.1-month supply of homes with 1,386 active listings—a considerable increase compared to previous years. However, despite higher inventory levels, the rapid rate hikes introduced by the Federal Reserve created a cautious atmosphere among buyers.

Current Market Conditions vs. Historical Trends

With a similar 2.1-month supply of homes now, but fewer listings than last year, the market still leans towards sellers due to relatively low inventory. However, there’s a noticeable shift. Although less than five months’ supply traditionally indicates a seller’s market, giving sellers the upper hand due to scarcity, the increased inventory provides buyers with more options, potentially improving their negotiating stance.

Pricing and Negotiations

The current trend shows homes selling at about 98.6% of the listing price, suggesting that sellers are becoming more open to negotiation, reflecting a slight shift towards buyer favorability. If you’re a buyer, this could mean more room to negotiate on price and terms. Sellers might need to be more flexible to close deals in this evolving market.

What’s Next for the Boise Market?

As we monitor these trends, it’s essential to consider whether they signal a move towards a more balanced market or are merely seasonal adjustments. For buyers, this could mean more opportunities to find the right home without rushing decisions. For sellers, staying informed will help strategize pricing and marketing to align with current buyer expectations.

Want to take a closer look at current market trends? Click here to watch the full video. 

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