The KEY to All Your Real Estate Needs |
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My goodness, there is so much going on in the Boise area in the upcoming weeks. Some events have been around for a while and you may be familiar with them. Others, may be an opportunity to explore something new. From Boise State football, to the Spirit of Boise, or a Salsa (the kind you eat) Festival there is sure to be something out there for everyone.
The real estate market is trending towards normalization, with Fed rate increases slowing down the demand for housing and hopefully curbing inflation. The data below for Ada County reflects this impact on the existing/resale and the new construction housing markets.
I don't know about you, with the summer of 2022 breaking the record for 100+ degree temperatures, I'm looking forward to the cooler days ahead.
Be well and stay cool!
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Key Ada County Market Takeaways...
- The median sales price for homes in Ada County was $589,990 in July, down 0.4% from June but 9.3% higher than July 2021. Buyers who purchased in recent months faced larger monthly mortgage payments due to higher mortgage interest rates and home prices, which has had a cooling effect on the demand for housing. As a result, home price growth and sales have slowed.
- This point is made more obvious when looking the existing/resale segment, which had a median sales price of $549,000 in July, a 3.7% decrease from the previous month, but a 4.6% increase from a year prior. The existing segment can react more quickly to changes in what buyers are willing or able to pay in contrast to new construction which must factor in land, labor, materials, and other fixed costs into the final home price.
- The month-over-month price declines indicate that the local housing market continues to be driven by supply versus demand, not speculation like we experienced over a decade ago. As demand decreases and supply increases, prices are responding accordingly.
- There were 2,408 homes listed for sale at the end of July, a 128.2% increase from July 2021, and the highest level of inventory we’ve seen since September 2015. Even with the uptick in inventory, the months supply of inventory in July was 2.8 months, meaning, if no additional homes were listed, the supply of homes would run out in about three months. A “balanced” market, or one that does not favor buyers or sellers, is typically between 4-6 months of supply.
- July also marked the fifth consecutive month of year-over-year declines in the number of sales. There were 685 closed home sales last month, down 33.8% compared to July 2021. There have been 5,370 total sales year-to-date, 707 fewer, or 11.6% less, than this time last year.
- Metrics that indicate competition in the market continued to show signs of normalizing in July. Focusing on the existing/resale segment, homes that closed last month spent an average of 21 days on the market before going under contract, compared to 11 days in July 2021. Additionally, the average original list price received for existing homes in July was 95.6%, which means that on average, buyers paid less than asking through a lower accepted offer, price reductions, or seller concessions. In July 2021, the average original list price received was 101.3%, meaning that on average, buyers paid more than asking price.
- Higher interest rates have done what the Fed intended and cooled demand for housing, which in turn, has also slowed sales and price growth. However, it’s important to remember that 2020 and 2021 were out of the norm for our market — we experienced a surge of demand for housing while we had record low inventory, which drove home prices up at a very rapid rate.
- Today, we’re in the midst of a shift to a more normal market, one where bidding wars are less common, buyers have more time and choices, and appraisals and home inspections don’t have to be waived in order for an offer to even be considered.
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What... The Fed Just Hiked Mortgage Rates? |
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Not true! Many people confuse increases in the fed funds rate made by the Fed with an increase in mortgage rates.
When the Fed raises policy rates it actually helps mortgage rates improve. Why is that? The simple answer is that the Fed rate hikes will slow down the economy and hopefully curb inflation, and inflation is actually what drives rates higher. As markets anticipate the Fed will have to raise rates, mortgage rates do move higher, but months in advance of actual rate hikes. Once the Fed actually raises rates, mortgage rates often improve slightly afterwards. Although it's a bit more complex than that, the main takeaway is that mortgage rates didn't get worse, and may have improved.
If you or anyone you know has questions about a mortgage for a home purchase, Julie and I are ready to help! Feel free to reach out to me directly.
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Contributor:
Eric Leigh, NMLS: #65666
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Up Up & Away
With the Spirit of Boise
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Hosted annually at Ann Morrison Park, the Spirit of Boise brings together locals and tourists alike who enjoy being surrounded by endless colorful balloons, inspiring music, and their favorite local radio stations.
All launches are weather-permitting, however they typically take place starting at 7:15 a.m. and last until as late as 9 a.m. Hot air balloons can be seen soaring over downtown Boise, with the occasional balloon falling on historic landmarks, including building rooftops, right in the middle of Broadway avenue, and even the front lawn at our Capitol building!
With free tethered rides, a chance to meet aeronauts each morning, and a one-of-a-kind Nite Glow spectacular, the Spirit of Boise Balloon Classic is truly an event you need to experience!
Wednesday, August 31 - Sunday, September 4
For event schedules and more information visit their website at:
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Boise Goathead Festival
Boise Goathead Fest is a large-scale gathering of pedal-powered people from all backgrounds on all types of bikes coming together for a single cause... to rid Boise of the pesky tire popping nutlets (otherwise known as goatheads).
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The Pedal Powered Parade!
It all starts with 6000 riders (many costumed) at 10:30am in front of the Capitol steps! The Parade officially starts at 11am. This year's parade route is about 1.5 miles long. The parade will be rollin' at an "all ages, all bikes, party pace," and it should take about 20 minutes to get back to the festival grounds (Cecil D Andrus Park).
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The Festival
When the parade ends the party begins! From 11:30am - 5pm at Cecil D Andrus Park! Get ready to celebrate all things pedal-powered, wonderfully-weird and bonafide-Boise. There will be costume contests, dancing, live music, Lost Grove beer, food trucks, activities for the kids, freak bikes, and the infamous Bicycle Block Party at 4:30 pm.
Saturday, August 27
10:30 AM Ride from Capitol
11:30 AM Cecil D Andrus Park
The event supports the Boise Bicycle Project and its programs to promote the personal, social, and environmental benefits of bicycling.
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Pooch Party Stroll & Splash |
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Join Nampa Parks and Recreation for the Annual Pooch Party Stroll and Splash!
The party includes a dog swim, pet-friendly vendors and raffle, a 1-mile walk, entertainment, contests and more. Proceeds help fund dog parks in Nampa. The Pooch Party offers something for everyone, so stroll and splash the day away while supporting a great cause!
Saturday, August 27
9:00 AM - 1:00 PM
Learn more and register online at:
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Art in the Park
Boise Art Museum’s Art in the Park is widely recognized as one of the premiere cultural events in the Northwest. This open-air festival, held on the weekend following Labor Day each September, provides visitors of all ages and interests with the opportunity to meet more than 200 artists and purchase their works. During the three-day event, Boise Art Museum presents a variety of contemporary arts and crafts along with wonderful food, live music and entertainment, and hands-on activities for children.
September 9 – 11
Friday & Saturday 10:00 AM - 8:00 PM
Sunday 10:00 AM - 5:00 PM
Julia Davis Park
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Do you Salsa....
North End Organic Nursery's 8th Annual Salsa Festival is returning this year to showcase some amazing salsa. They're looking for both professional entries who want to promote their awesome salsa to the public, and amateurs looking to compete. Amateurs compete for prizes in lots of categories with bragging rights to boot! Red salsa, hot salsa, green salsa, mild salsa, fruity salsa and generally unique. We want them all!
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It's Time for College Football...
Don't miss a game this season. Here's the schedule for Boise State and the University of Idaho. Want something to keep close at hand? Email me and I'll send you a magnetic backed schedule. julie@homesinboiseidaho.com
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Boise State
Football Schedule
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University of Idaho
Football Schedule
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July 2022 Circle of Giving...
We at Homes for Heroes, Treasure Valley are so proud to be part of this Circle of Giving and give back to those in our community who give so much.
In April 2022, Nationally, Homes for Heroes...
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gave back $1,867,440 in Hero Rewards.
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connected 7,653 People with Homes for Heroes affiliated real estate professionals.
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helped 758 Heroes save money when buying, selling or refinancing a home.
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enriched 531 Communities with Hero related real estate transactions.
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awarded $20,000 - $10,000 to the TMPA and $10,000 to the Marine Corp Foundation.
Join the circle by sharing this email and GIVING your HERO friends and family the gift of BIG SAVINGS on the sale or purchase of a home.
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Julie Cendejas | Cendejas Group Real Estate, Keller Williams Realty Boise
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