Spring 2023 Market Update

We felt the tides turn in April, with strong buying activity and the return of multiple offers. 

May has continued the same trajectory. We are feeling a zealous Spring Market, which has brought an increase in the median sales price. A seasonal increase in the Spring Market values is expected and commonly experienced, year-over-year. This year, however, has been exceptional. Our Spring increase in the values of existing homes during the month of April was even stronger than a typical Spring, perhaps due to the market balancing out an “over correction” of the Treasure Valley’s values, which had dropped significantly over the past year. 

How did our market get here? Our local market was hit harder than many others in the US, when the Federal Reserve dramatically increased its benchmark borrowing rates and the market-correction occurred last year. In Spring 2022, we saw area inventory swell, buyer activity decrease, and prices fall. By the beginning of 2023, inventory (available homes to buy) had decreased and balanced, and mortgage interest rates eventually stabilized and ceased the trajectory of skyrocketing up. Currently, favorable market conditions of this Spring 2023 are clearly indicating renewed buyer confidence in our market, fueled by low supply and a strong demand.

The monthly trend of declining values, which started in Spring 2022, changed in February this year when we saw stabilization of pricing and a slight increase in the median sales price. The same occurred in March this year. Then, this April was significant. April provided a substantial gain in values illustrated by an increase in the median sales price: The median sales price of existing homes increased from $475,000 in March 2023, to $515,000 in April 2023, (this is a one-month comparison)! While it remains true that values, overall, and the median sales price for existing homes in our valley, have decreased 9.6% over the past 12 months (from end of April 2022 – end of April 2023), the data shows a strong market in our valley, and one that is finding its place and balance after a period of market correction.

Pricing homes competitively in the current market remains important. While many homes are experiencing multiple offers and price escalation, certain segments of the market are still feeling a normal or slower market. These include homes priced over the competitive range of the market, small pockets of the market where the inventory of similar homes are high, or where buyer demand is specialized. As the Spring conditions continue to spread, each segment of the market has seen a pick-up in activity, one after the next.

Thank you to our clients for their continued business and trust for three decades! Being in touch with a knowledgeable and experienced real estate advisor is crucial to successfully buying or selling a property during an ever-changing market. 

Contact us to learn how our signature client concierge service can benefit you in the sale or purchase of a home by phone: (208) 472–5337 or email: info@lysibishop.com. We have a full-service team of experts, who will help you through each step of the important journey of buying or selling a home. Stay up-to-date on your home’s changing value here.