Snow Hits January Housing Market… Sort of

Article by Breanna Vanstrom, Boise Regional Realtors

"While most of the white stuff has melted, January’s historic snowfall had an effect on the local real estate market… sort of.

Between extended school closures, below freezing temperatures, poor road conditions, and even a state of emergency in the City of Boise, many people were focused on shoveling driveways rather than seeing homes. Though purchase activity was down in January compared to last year, it was up from the previous month.

In January 2017, 1,037 homes went under contract in Ada County, down 6.5% from January 2016, but up 5.4% over December 2016. In Canyon County, 432 homes went pending in January 2017, down 1.6% from January 2016, but up 11.3% from December 2016. Homes that are pending typically close within 30-90 days.

Homeowners weren’t as eager to list in January, which pushed overall inventory down further. There were 1,425 homes for sale in Ada County in January 2017, down 15.9% from a year ago and down 4.4% from December 2016. Canyon County had 705 homes for sale in January 2017, down 11.3% from January 2016 and down 12.7% from December 2016.

Those waiting until spring to list their home — for nicer weather or to potentially net more money — should continue to see prices rise over the next few months, however; the rate at which prices are rising has been slowing down, both nationally and locally.

Increases in mortgage rates, which many economists expect in 2017, may further affect price gains. The Mortgage Bankers Association (MBA) is forecasting the 30 Year Fixed Rate Mortgage to reach 4.7% by Q4-2017, 0.9 points higher than Q4-2016 (3.8%) and 0.4 points higher than their forecast for Q1-2017 (4.3%).

To reiterate, slowing price appreciation does not mean that actual prices are going down, nor does it mean that people are losing equity. For those homeowners considering selling, it’s possible their home is worth more than they think. Seek the advice of a REALTOR® to understand what supply and demand looks like in your immediate area, and how home prices have responded as a result."

Below are the graphs showing the Resale market statistics in Ada and Canyon County in January 2016 vs. January 2017.
The average days on market of resale homes are below 2 months in both counties which means it is a strong seller's market.