Goodbye 2023! Can't say I'll miss you. It was a slow year for home sales with spiking mortgage rates pricing buyers out and discouraging sellers from moving. But I am optimistic that 2024 will be better with easing rates and increased inventory.
Looking back on the fourth quarter, home prices did slide as usual for the off-season. It did not help that mortgage rates hit 2-decade highs in November.
The median existing home price in Ada County dropped 3% for the quarter to $510k. Much less than the 4.8% drop the previous Q4, despite higher mortgage rates. This is a sign of underlying tightness in our housing markets- low inventory vs pent-up demand. Year over year home prices are still up 2% in Ada County.
Canyon County's median existing home price fell 2.8% for the quarter to $380k. Also, much less than the previous Q4 drop of 7.8%. The housing market is even tighter here. Year over year, Canyon County home prices are still up 3.1%
Looking ahead to Q1, this snowy weather will surely hold up listings and sales in Jan/Feb. On the bright side, mortgage rates have recently dropped over a point and should fuel demand from buyers later in the quarter.