Kodalane — The once screaming Idaho housing market seems to be losing momentum.
Chad Oakland of the Northwest Realty Group said:
According to real estate agent Redfin, 41% of Boise home retailers cut prices in April. Oakland said many mortgage sellers are doing the same, as mortgage rates have risen above 5%, giving buyers good reason to suspend.
“We need a lot of purchasing power from people,” Oakland said on Friday.
And it is lowering the price.
Rocket Homes reports that median home prices in Kootenai County in May were $ 521,000, down 30.8% from a month ago.
The asking price for a one Dalton Gardens, five-bedroom, 2,500-square-foot home was reduced to $ 949,000 on Friday.
In every new home on the market, multiple offers are no longer rushing. People stopped buying invisible homes and surprised sellers.
“If it’s been on the market for two weeks and there’s no offer, people wonder what’s going on,” Oakland said.
One factor is pricing.
According to a recent analysis by Moody’s, Coderlane was seventh on the list of the most overvalued markets, with prices up 56%. Boise was number one with a value of 73%.
“The lowest mortgage rates ever helped fuel demand for homes, especially during the pandemic, and competition for homes pushed up prices. But now the federal reserve is raising rates to curb inflation. , Already it is cooling demand, “said Dr. Ken H. Johnson, economist at FAU’s Business College.
In another study, researchers at Florida Atlantic University and Florida International University found that the Spokane and Boysy housing markets were at their highest prices.
According to Redfin, home prices in Corder Lane in April were up 40.3% compared to last year, with a median of $ 675,000. Redfin reports that on average, Corder Lane homes are sold five days after they hit the market. 88 homes were sold in April this year, down from 106 last year.
Coderlane councilor Dan Guckin said Thursday that the battle for affordable housing in the city was defeated.
Oakland said previous mortgage rates in the 3% range put high-priced homes within the reach of more buyers, but inflation changes it all.
The latest rates near 5.5% have driven a large pool of those potential buyers out of the market.
“I think we’re seeing some setbacks in pricing,” Oakland said.
According to Coeur d’Alene Regional Realtors, median home prices in Kootenai County in April were $ 549,950, up nearly 25% from the previous year.
Just six months ago, in December, the average price of a home in Kootenai County was $ 480,000.
Lindsay Allen, president of Corder Lane real estate agent, said interest rates have the greatest impact on the housing market.
“We will cut more people, especially at affordable prices,” she said.
Oakland said it still has purchasing power and that some homes have multiple offers. However, these cases tend to occur in niche markets such as downtown Corderlane and around Lake Corderane.
And inventory is increasing.
According to Coeur d’Alene Regional Realtors, 160 homes were on the market in Kootenai County in January. February was 192. March 289, April 441. May numbers were not available on Friday.
“It’s impossible to make a house cheaper,” Oakland said. “It’s very easy to overpriced it.”
Oakland expects less competition for new inventories on the market.
He said he does not expect the housing market to fall significantly.