Ada County April 2022 Market Update

The Ada County Housing Market continues to surprise most of us who have been actively working in it for years! In one year, since March of 2022, our prices have increased over 20%, but what is even more astounding is the increase from February to March.

What is causing this increase in price? The biggest answer for that jump is the impact of new construction on our market. One out of every three homes closed in March was New Construction, which comes at a premium price.

Thankfully, our resale, or existing home inventory has doubled since last year, causing our inventory to creep up and give buyers more options. However, there are still many homes selling for over list price due to multiple offers on homes.

We need more existing and resale inventory to reduce the competition that is driving prices upward. At the end of March, we had almost 600 homes for sale, across all price points. That is a drastic improvement from our lowest inventory levels in February of 2021 at only 269 homes available. But for those worried about a housing bubble, it is still a far cry from our highest inventory level of 5,198 homes for sale in July of 2007.

Interest rates hikes are happening, and beginning to impact many buyers and their affordability. Experts in the housing and lending industry are predicting a continued increase in both the price of homes and the interest rates. That should cause a drop off of buyer interest, which will help to level out the demand for the limited number of homes for sale.

If you have any questions about your opportunities in this housing market please let us know. We work with our clients to learn their wants and needs and help them succeed and thrive in this fast moving, and ever changing housing market.

Market Snapshot from Amherst Madison, April 2022