Boise Real Estate Summer 2022 Conditions

It’s time to adjust the sails, the winds of change are here. The impact of a down economy and the efforts of the Federal Reserve to manage inflation has rippled into Boise real estate.   What we’re seeing: Inventory has increased 192.9% YoY Home sales are down 16% YoY Mortgage interest rates are double what they were this time last year Price reductions are a daily occurrence And… median sales price is still up 12.8% YoY*current market stats from July 1, 2021 to July 1, 2022   These metrics are trending to a normal and balanced market. After we all got used to Boise real estate breaking record after record over the past 2 years, this change seems like a stark one… doesn’t it?  It is taking extra thought for realtors, buyers, sellers and homeowners to acclimate to the adjustment from an extremely undersupplied market (with prices escalating at unprecedented rates) to entering back into a “normal” market. It has become difficult to decipher the media's headlines, with the sound-bites not providing the full picture. Most interestingly, the median sales price still remains significantly above the same time last year, and year-to-date this year. That's incredibly positive news for sellers and homeowners that we're not seeing in the headlines. Remember the days when a home would sit on the market for 30, 45, 60 days and get 1 offer? That was normal. This type of market may seem like something from yesteryear, but it also feels like a much healthier and less stressful market to buy or sell in.    What this means for buyers: Better selection and more options to choose from More time to make a buying decision Mortgage loans are more expensive   What this means for sellers: Expect longer days on market Expect more competition Effective pricing is key   We are all feeling the aftershock of an exuberant market, and now it's time to take things a bit slower. Now, more than ever, sellers are leaning towards the expertise of knowledgeable Realtors® to make their home stand out among the rest. Buyers are taking a bit of reprieve, but need to move quickly to lock in mortgage rates while they are still low.  

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The Pros and Cons of Buying a Home in Boise Right Now

The tides of change are bringing favorable conditions for buyers in Boise real estate. After a whirlwind of price appreciation and stiff competition over the past few years, buyers are rejoicing in a sea of inventory and daily price reductions. One thing is raining on this buying parade, increasing mortgage rates. Mortgage loans are 40-50% more expensive than they were just a year ago. This is affecting the eligibility for some would-be borrowers and affordability for those who still meet their lender requirements. So, is now a good time to buy a home? We consulted with two of our Buyer Specialists, Allan Brock and Sarah Kaisler Berg on their insights to the pros and cons of buying a home now.  “Buyers have more homes to choose from, which makes sellers more willing to negotiate, and ultimately creates a fairer, more balanced transaction for both parties. We’re seeing contingent offers accepted, prices or terms negotiated, even closing costs or interest rate buy down incentives from sellers if homes have been on market too long.” - Sarah Kaisler Berg, Realtor®   The Pros: Better and more options to select from More time to make a buying decision Sellers are more willing to negotiate Less competition as buyers leave the market Daily price reductions Real estate may be the safest option to hedge inflation for investors, and is a reliable long-term investment Start building equity sooner rather than later   The Cons: Increasing mortgage rates Home values are still high compared to where they were a year ago Competition is still high for homes priced right and in high-demand neighborhoods   First-time home buyers have a lot at stake in this changing market as they race to meet their window of opportunity while rates are low and before home prices keep appreciating further. Buying now can help current renters start building equity, essentially paying themselves rather than a landlord. Realtor® Allan Brock recommends you consider these 3 things before moving forward on purchasing a home: Can you afford the down payment + closing costs and still have additional savings beyond the cash needed to close the purchase?                                      Can you afford the monthly house payment and not go broke doing so?    Will you still have money left over each month to put toward other financial goals?  The shift to a more normal real estate market is giving hope to many tired buyers who missed out on homes during the frenzy. Even then, when most homes were receiving multiple offers, Sarah Kaisler Berg explains “we were very successful in securing the right home for buyers. As long as you are clear on your essential ‘needs,’ and willing to be flexible with your ‘wants,’ you’d be surprised at the gem you may find.” Now buyers can rejoice in taking back a little bit of power in their wants/needs list.  If you’re on the fence about purchasing a home and would like personalized guidance to your unique situation, we’re here to help. Our team of knowledgeable and experienced Realtors® are here 7 days a week and have helped hundreds of families find their perfect home. Each of our Buyer Specialists provide value to our clients and specialize in many areas, and we’re confident in matching you with the right agent to make home buying an extraordinary and stress-free experience. Contact us today to get started. Photo: Roselyn Tirado, Unsplash

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