Feeling a Shift? Here’s What’s Happening in the Housing Market.

You might not feel it yet, but the housing market is undergoing a change.

According to Zillow’s latest report, July marked a shift from a strong sellers' market to a more balanced, neutral territory.

So, what does this mean for you? Let’s unpack it.

A Balanced Market is Here For the first time this year—and for the first July since 2019—the national housing market is in neutral territory. This balance means neither buyers nor sellers have a distinct upper hand, which is a big change from the competitive sellers' market of recent years.

In this more balanced market, homes lingered a bit longer, with properties going under contract in an average of 18 days nationwide. While that might still sound quick, it’s nearly a week longer than this time last year.

Inventory has also grown by nearly 25% compared to 2023, giving buyers more options to choose from. Plus, 26% of homes on Zillow saw price reductions in July—the highest percentage for any July since 2018.

Boise Housing Trends

Now, let’s zoom in on what’s happening here in Boise and Ada County.

• Days on the Market: On average, homes went under contract in 36 days in July—a 17% increase year-over-year and a 2.8% increase month-over-month.

• Active Listings: The number of homes for sale in July rose to 1,718, a 17% increase year-over-year and a 2.8% increase month-over-month.

• Price Reductions: The Median Sales Price (MSP) for single-family homes in Boise is $545,000, which is a 0.5% increase year-over-year but a 4.4% decrease month-over-month.

What Buyers Need to Know Buyers, this is your moment to explore the market with a bit more breathing room. You’ve got the chance to make informed decisions without the rush!

However, keep an eye on mortgage rates. A recent dip in early August might draw more buyers back into the market, potentially sparking competition again.

Also, take note of new industry rules as of August 17, 2024—buyer’s agents now need a written agreement with you before showing any properties. This change aims for more transparency around agent compensation. Want to learn more? Check out the Upcoming Changes in Real Estate

What Sellers Need to Know Sellers, don’t panic—but it’s time to adjust expectations. It’s not 2022 anymore, where homes sold in hours. Properties are taking a bit longer, and with more inventory, pricing your home right is crucial.

As the market becomes more competitive, consider offering incentives like covering some closing costs or compensating the buyer’s agent—just remember, this can no longer be done through the MLS, but options are still available off the MLS.

Final Thoughts Whether you’re buying a home in Boise or selling a house in Eagle, staying informed and flexible is key. The housing market, along with mortgage rates, will continue to influence buyer and seller behavior. If you need personalized market insights or advice, don’t hesitate to reach out—we’re here to help. Email featherandfernrealtyco@gmail.com with any questions.