Ada County, Idaho Market Pulse Week of May 4 · from Luke Gilbert's team |
Sellers are seeing more competition and buyers are getting pickier as Ada County heads deeper into spring. Inventory just had its biggest jump in weeks, but homes are not selling any faster. Sellers are still testing higher prices, but more are being forced to cut their asking price when buyers do not bite. It is a classic standoff: more homes to choose from, but affordability is still a real hurdle for most buyers. If you are looking to buy, the story is all about patience and options. Inventory has climbed for the third week in a row, and nearly 29 percent of listings in Ada County have dropped their price. For sellers, the reality is sinking in that pricing too aggressively means your home will just sit. With mortgage rates stuck around 7 percent, buyers are not rushing to make offers, and the longer a home sits, the more likely it is to see a price cut. Active Market The median price for a home in Ada County nudged up to $699,000, a modest gain of $4,100 from last week. Price per square foot is flat at $301, so this is not about bigger or newer homes selling. Instead, it is about sellers holding the line on price even as market power shifts toward buyers. Inventory climbed sharply to 1,693 active listings, up 70 from last week. That is the biggest increase we have seen in a while, giving buyers even more choices. But do not let the higher prices fool you. Nearly 29 percent of sellers have already cut their price, up slightly from last week. Only 3 percent managed to raise their asking price, down from before. The median days on market is stuck at 42, so homes are not moving any faster. If you are a seller, the message is clear: most buyers are not going to overpay, and you will need to compete with plenty of other listings. For buyers, the combination of more choices and price drops is about as close to leverage as you are likely to get this spring. New construction New construction prices ticked up again, with the median new build now at $604,990, a $5,000 increase from last week. This is a reversal from the big drop two weeks ago. Rising material costs due to global supply issues could be forcing builders to raise prices, even as they try to attract cautious buyers. If you are shopping for a new home, do not expect deep discounts, but you might still find builders willing to negotiate or offer incentives to close a deal. The bigger picture Nationally, the Federal Reserve is holding rates steady, which means mortgage rates in Ada County are not coming down anytime soon. With borrowing costs hovering around 7 percent, buyers are still facing steep monthly payments. At the same time, strong job growth in Boise’s tech sector could keep demand steady, especially for people moving in from out of state. On the flip side, global trade tensions are raising the cost of building materials, which is putting pressure on new construction prices and keeping affordable options in short supply. If you are waiting for a big shift—either a price drop or a rush of buyers flooding back into the market—it is just not happening yet. Instead, we are seeing a slow-motion standoff, with both sides waiting for the other to blink. The numbers do not force a clear conclusion, but they do suggest that patience and realism will pay off, whether you are buying or selling. It is a market that rewards careful moves and punishes impatience. If I had to guess, I would say we are in for a few more weeks of this careful dance, with buyers holding out for deals and sellers having to watch their competition closely. No matter which side you are on, keeping an eye on new listings and price cuts will tell you more about where things are headed than any headline. | |||
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Prepared for you by Luke Gilbert |