JANUARY 2022 TREASURE VALLEY REAL ESTATE NEWSLETTER
It's hard to believe that it's already mid January of 2022! I hope your year is off to a great start. Here's an overview of the real estate market in 2021 to help put our current, local real estate market into perspective.
There’s no doubt that our real estate market was incredible this last year! 69.7% of existing homes sold above list price in May of 2021, and the average amount that buyers paid over list price was $44,075. This average fell to $16,487 in December of 2021. The median home price for existing homes located in Ada County (which includes the cities of Boise, Meridian, Kuna, Eagle, & Star), rose from $420,000 in December 2020 to $510,000 in December of 2021. That’s a year-over-year increase of 21.42%. The median price for new construction increased from $444,900 in December of 2020 to $579,990 in December of 2021. That’s a year-over-year increase of 30.3%. Home prices in new construction soared due to lack building material and labor shortages, which increased building costs. Builders continue to face shortages as we head into 2022. This is causing delays and a longer building process.
The median prices of existing homes located in Canyon County (which includes homes located in the cities of Nampa, Caldwell, Middleton, Greenleaf, Notus, and Parma), increased from $313,250 in December of 2020 to $384,100 in December of 2021. That a year-over-year increase of 22.6% in home values. The median price for new construction was $369,990 in December of 2020 and the median price was $453,990 in December of 2021. That’s a year-over-year increase of 22.7%.
Home prices seemed to dip a little in October and November of 2021, and then seemed to stabilize in December of 2021. Homes are taking a little longer to sell. The average days on market from when an existing home in Ada County is listed, to the time it goes pending (with an accepted offer), was about 30 days in December of 2021. The average number of days on market in December of 2020 was about 12 days. The average number of days on market for an existing home in Canyon County was 32 days in December of 2021. That’s up from an average number of days on market of 15 days in December of 2020.
Although home prices stabilized in December and homes are taking longer to sell; I’ve noticed an uptick in the market within the last couple of weeks. I’m hearing this from fellow agents within our industry as well. I listed a darling home in Meridian this last week. We had 33 showings and 10 offers. 9 out of the 10 offers were above asking price and the accepted offer was $24,100 above the list price.
Idaho is one of the fastest growing metros in the U.S. with a persistent demand for housing. We have struggled the last several years with low inventory of available homes for the number of buyers wanting to move into homes. We continue to experience this as we head into 2022. There is .7 month’s supply of available homes in Ada County as of December 2021, which equates to about two weeks supply of available homes! Keep in mind that a normal/balanced market provides an average of 4 to 6 months’ supply of available homes. Canyon County has less than two months’ supply of existing homes.
What’s happening in the mortgage industry? It is anticipated that interest rates will increase three times this year (with a projected increase of about quarter of percent each time). Rates are supposed to follow suite in 2023.
Whether you, or someone you know, is looking to buy or sell, it’s never been more important to work with an experienced Realtor that you can trust. I will help identify potential options for purchase, connect you with a mortgage lender, help craft a competitive offer, and negotiate on your behalf, allowing you to make decisions confidently and quickly to achieve your real estate goals.
(Date provided IMLS and Boise Regional Realtors)
Sincerely,
Kristie Patterson
Your Real Estate Professional