Interest Rates:
The national average 30-year fixed-rate mortgage experienced a notable decrease, dropping by 0.28% to reach 6.67%. This marks a substantial reduction from the 7.8% rate observed just about six weeks ago.
Demand:
Thus far, the recent decrease in interest rates hasn’t prompted a surge in demand. Ordinarily, it takes 2-3 weeks for shifts in interest rates to manifest in corresponding changes in demand. Considering the timing amidst the holiday season, it might be early January before we witness any notable impact on demand. Presently, the most recent week of pending sales maintains a trajectory similar to the preceding three months, with 125 homes in total. This breakdown includes 49 newly constructed properties and 76 resale homes.
Supply:
The decline in the supply of homes for sale to 1,144 (from 1,182) is predominantly attributed to a decrease in resale properties, now at 548 (down from 582) as people focus on the Christmas season. The overall inventory comprises 379 completed new construction homes (down from 383) and 217 homes currently under construction.
Inventory Rate:
The overall inventory rate for Ada County stands at 2.1 months, indicating continued stability in the low 2-month range. Breaking it down further, the new construction segment has an inventory rate of 2.8 months, slightly above the overall rate, while the resale market boasts an inventory rate of 1.7 months, slightly below the overall rate.
May your Christmas celebration be filled with warmth, laughter, and the company of cherished friends and family. Wishing you and your loved ones a Merry Christmas!
For a historical perspective on buyer demand, available homes, inventory rates, and median home prices, please click here.
*Although the author attempts to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Go to Disclaimers and Methodology.
Leave a Reply