April 2023's median sales price was $517,500, marking the sixth consecutive year-over-year drop but a $34,000 positive surge from last month. Historically, March to April has shown month-over-month shifts from -4.5% to +3.8%. This month's 7.0% uptick is uncharacteristically hefty for the season and is the highest month-over-month increase we've seen in 19 weeks.
Forbes.com warns that housing market activity could be dampened by mortgage rate changes as it has been in other areas across the country already. Lowered purchasing hunger could result in lower prices, but their research anticipates a nationwide price decline is likely not in the cards. For example, Ada County's price bump this month nudged the MSP to pre-winter range and will likely continue to rise if supply recovery dwindles.
April showed a significantly slimmer inventory accrual year-over-year at 17.4%. The last time we saw inventory accumulation at less than 20% was June 2021 — the edge of the "COVID market." Since then, we had seen an average inventory growth of 112.4% with its highest peak reaching 192.9% in June of 2022.
Sales have cooled, as well, giving time for new listings to catch up with demand. There were 645 sales in Ada County, 398 of which were existing homes and 247 were new construction. April marked the fourteenth consecutive year-over-year reduction in sales at 21.0% — 13.1% less than March's transactions.
Existing homes continue to be the hottest commodity in Ada County, spending an average of 31 days on the market — a surprising 138.5% increase from the same month last year but a 32.6% decrease compared to March of this year. The lurch in existing home sale speed matched the pace of late-summer last year. New construction's DOM swelled by 287.5% from April 2022, bogging down to 93 days on market — a slight respite from the 106 days we saw last month.
New market landscapes may deter buyers from uprooting due to higher interest rates, but softened prices will ease the blow for those who need to move for life circumstances such as growing families and job relocation. NAR's Chief Economist Lawrence Yun echoed the uniqueness of the market at this week's Legislative Meetings in Washington D.C.; the tug-of-war continues between limited supply causing multiple-offer situations — currently 28% of transactions nationwide — and the need for lower prices to account for changes in mortgage rates.
Complications are exasperated by proposed LLPA changes which may affect affordability for some. We will continue to monitor developments on the changes and share them with BRR Members.
Down payment assistance programs and rate buy-down programs continue to be an asset to buyers who are hesitant due to recent mortgage rate changes. Whether consumers are purchasing their first home or upgrading to fit their current lifestyle, real estate remains a powerful long-term tool for their financial portfolio. We encourage consumers to connect with a REALTOR® and learn what programs may fit them best for a changing market — both as a buyer and a seller.
To view the Treasure Valley homes currently for sale, CLICK HERE
