Spring is here and the Treasure Valley housing market continues to see both strong buyer and seller activity especially as people continue to move to Idaho. Even with the continued growth in Boise and the surrounding areas such as Meridian, Eagle, Star, and Nampa we’ve had several people ask if the housing market is declining as they’ve noticed homes for sale staying on the market a little longer than what they’ve been used to seeing.
We wish there was an easy way to explain the current housing market but there is not. What we can tell you is no, we are not seeing a decline in the market. We are however experiencing a slight shift to what may have once been considered a more normal housing market. That’s hard to really say though since the Treasure Valley housing market has been far from normal for quite some time now. Because of this, here’s our best analogy to help explain the most recent market shift we are experiencing.
Let’s say you are driving along the freeway and the speed limit is 65mph however, you and everyone else are driving 80mph. Now consider you’ve been driving this speed for over an hour and you recognize you’ve made great progress in your distance by driving over the speed limit. Then suddenly up ahead you see a couple of cars coming towards you and they flash their lights. Off in the distance, you see the flashing lights of police cars and now everyone who was doing 80mph adjusts their speed and slows down to 65mph. Luckily everyone manages to avoid a ticket since you all were driving the speed limit. Now suddenly you feel like you are no longer moving anymore even though you are still going fast and you’ll still get to your destination in a reasonable amount of time even though your speed has decreased. You still notice something has changed as a result of the decrease in speed. This is exactly like what’s been going on with our housing market.
Our housing market has been on hyperdrive as far as price appreciation has been concerned and we were seeing 15 to 20 percent appreciation. Now the market has slowed back down to normal were we should be around 4 to 6 percent appreciation. As a result, we are also seeing days on market increase and home prices coming down slightly. Something to keep in mind though is the average days a home is on the market in a healthy homebuying market is sixty days. In the Treasure Valley, we are still well below sixty days on the market for most sellers. We are still thriving and it’s a buyers and sellers’ market, so consider this slight market shift the new normal in our ever-evolving housing market. If you have any questions about the market, would like to know the value of your home, or if you’d like to beat the spring selling rush, please contact me. Let’s get together, coffee is on me.