As we head into 2023, the housing market in Boise, Idaho, and across the United States is facing a range of challenges. On the one hand, millions of Americans are gearing up to purchase a home this year, with 28 million people planning to buy a home, according to a survey released by personal finance company NerdWallet. However, at the same time, Americans are largely misinformed about the state of the housing market, with many potential buyers overly optimistic about home prices and expecting an imminent crash in the market.
One of the biggest issues currently facing the housing market in Boise is rising mortgage rates. According to a recent report by Wolf Street, the average 30-year fixed mortgage rate has risen to 6.87%, while the 10-year Treasury yield is moving towards the 4% mark. This news comes as we head into the spring selling season, traditionally one of the busiest times of the year for real estate transactions.
As a result of rising mortgage rates, all-cash buyers, investors, and second-home buyers are pulling back. Inventory remains low, with potential sellers reluctant to put their properties on the market. However, for deals to be made, potential sellers need to get realistic about the price at current mortgage rates. Boise has been experiencing a rapid increase in home prices, with the median price of all types of homes in Boise currently standing at $532,000. This is a 49% increase compared to the median price of $357,000 in January 2020.
Despite the rapid increase in home prices, sales of previously owned houses, condos, and co-ops fell by another 0.7% in January from December, with sales dropping by 37% year-over-year, to the lowest level since 2010 during the first housing bust. The median price of all types of homes has fallen for the seventh month in a row, down 13.2% from the peak in June.
To make deals happen, potential sellers need to get realistic about the price at current mortgage rates. Boise’s real estate market has been a hot topic for some time now, with many buyers looking to take advantage of low mortgage rates and the city’s growing economy. However, the current state of the market means that prospective buyers need to be realistic about what they can afford and what they can expect when it comes to the type of property they can purchase.
It’s important for prospective buyers to stay informed and realistic about the housing market before making any home-buying decisions. By staying informed about the current state of the market in Boise and taking a realistic approach to their home search, prospective buyers can make more informed decisions and increase their chances of success.
In conclusion, the housing market in Boise, Idaho, and across the United States is currently facing a range of challenges. Rising mortgage rates, declining home sales, and falling prices are all contributing to a challenging market. However, by staying informed and realistic about the state of the market, prospective buyers in Boise can increase their chances of success and find their dream home in this beautiful city.
Good News Realty Group LLC, located in Boise Idaho.
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