ELMORE COUNTY DECEMBER 2022 AND YEAR-END MARKET REPORT

January 10, 2023 (BOISE, IDAHO) — Elmore County ended the year with 497 total home sales, 26.4% fewer than in 2021, and the lowest level since 2018. Of those, 438 were existing sales while 59 were new construction. Higher mortgage interest rates; combined with the swift home price appreciation in the last several years have lessened demand for housing and impacted buyers’ purchasing power and ability to afford increased monthly payments.

The overall median sales price for the county in 2022 reached $340,000, up 9.7% from 2021. When looking at prices by segment, the median sales price for existing homes was $331,000 year-to-date, an 8.5% increase year-over-year. For new homes, the year-to-date median sales price came in at $447,990, a 17.0% increase compared to 2021. New homes typically sell at higher price points, due to increased costs of land, labor, and construction materials. The Days on Market (DOM) metric —which measures the time between when a property is listed and when it has an accepted offer — was 25 days for the year, three days longer than in 2021. December sales had an average DOM of 32 days, compared to 48 days in December 2021. Looking ahead, mortgage rates will be a major factor impacting the housing market going into 2023. Dr. Lawrence Yun, National Association of REALTORS® chief economist and senior vice president of research, forecasts that prices will remain stable and expects the 30-year fixed mortgage rate to settle at 5.7% as the Federal Reserve slows the pace of rate hikes to control inflation. “Any declines and stabilization to mortgage rates will help with affordability,” said Debbi Myers, 2023 President of Boise Regional REALTORS®. “There are current homeowners who would like to move up or downsize but are locked in with a low rate from the last several years and aren’t motivated to make a move until rates come down a bit. If rates do drop below 6%, we’ll likely see more listings come on the market, as well as an uptick in demand.” Those who are able to buy in today’s market have more options to choose from and more time to shop for a home than they’ve had in years. There were 68 homes available for purchase in Elmore County in December, 82.9% more than in December 2021. Of those, 54 were existing/resale homes and 10 were new construction. Buyers who haven’t looked at new homes may want to reconsider, as some builders are offering incentives and competitive pricing to move product, and many new construction homes have features and upgrades that aren’t readily available in the existing/resale segment. While sellers need to price competitively and may need to offer incentives to attract buyers, home price appreciation isn’t expected to drop significantly. Our area experienced some of the highest price gains in the country over the last several years, so some adjustments are to be anticipated, but the 40-50% price declines we saw in the last housing cycle are unlikely considering the strong equity position of homeowners.

Trends and statistics are useful for understanding the market as a whole, but it’s no substitute for personalized guidance from a real estate professional,” added Myers. “Connect with a REALTOR® to learn about your options and to formulate a plan to reach your real estate goals in the coming year.”

The data reported is based primarily on the public statistics provided by the Intermountain MLS (IMLS), a subsidiary of Boise Regional REALTORS® (BRR). These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance. If you have questions about this report, please contact Cassie Zimmerman, Project Manager for Boise Regional REALTORS®. For notes on data sources, methodology, and explanation of metrics, visit boirealtors.com/notes-on-data-sources-and-methodology.

If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.