That’s a great question! There is a meme circulating on Facebook among real estate agents that says, ‘Remember back in early 2020 when you wanted to buy some toilet paper? It’s kinda like that.’
While that is somewhat tongue-in-cheek, if someone is a buyer in this market, they might find the analogy pretty apt. Lots of people storming the store and the shelves are pretty empty!
This chart shows existing home market statistics for Ada County through the end of May.
In the upper left graphic, the red line shows the number of active homes on the market each month for the last year. Notice how many fewer homes are on the market this year versus last year!
The big graphic has two key columns: ‘Months of Inventory’ and ‘Sold to Orig(inal Price) Ratio’. ‘Months of inventory’ means that if no other homes came on the market, this is how many months it would take to sell everything that’s currently on the market.
Generally, four to six months of inventory is considered a ‘balanced’ market, with over six months a ‘buyer’s’ market and under four months a ‘seller’s’ market. You can see that the average inventory is just two weeks! And homes are selling on average for 101.8% of their asking price. That means some are selling for less and many more are selling for more than their asking price — think multiple offers and auction-like conditions.
If you are considering selling — or downsizing — anytime soon, now would be an excellent time! People sometimes ask us, 'So where would I go if I sold since there are so few houses?' Fortunately, if you already have a house, getting a new one is much easier with more options than if you're trying to buy without owning a home here already.
Fortunately, there is a bit of good news for buyers in that interest rates are historically low. However, most of the good news in our current market is for sellers: crazy-low inventory, lots of people moving here, and prices are high.
Give us a call at (208) 327-2127 and we can talk to you about your options!