August 2024 Market Update: How the Numbers Impact You
As the summer winds down, August brought subtle but meaningful changes to the Ada County real estate market. Whether you’re buying, selling, or simply watching the trends, understanding how these shifts affect your goals can make all the difference. Let’s dive into what happened last month and what it could mean for you.
Home Prices Adjust as the Season Slows
The median sales price (MSP) for single-family homes in August landed at $536,655, reflecting a 3.2% increase from last year but a slight 1.5% drop compared to July. Resale homes followed a similar trend, with prices dipping 2.8% month-over-month to $525,000. Meanwhile, new construction homes held steady from July at $549,900, though they dipped slightly (0.9%) from August 2023.
What this means for buyers: The gradual easing in resale prices could offer a chance to snag a deal, especially as we move into a seasonally slower market. New construction buyers, however, should expect consistent pricing but may find more flexibility in negotiations as those properties stay on the market longer.
What this means for sellers: If you’re selling a resale home, don’t be discouraged by the slight price drop—year-over-year growth shows stability. Pricing competitively and marketing effectively are key to standing out in a market with growing inventory.
Inventory Keeps Growing, Giving Buyers More Options
For the seventh straight month, inventory levels rose, pushing the months’ supply of inventory (MSI) to 2.9 months, up from 2.7 in July. Notably, townhomes hit a historical high with 153 active listings in August. This growth, while giving buyers more choices, reflects a market that’s slowly moving toward balance.
What this means for buyers: More inventory means more opportunities. With townhomes seeing an increase in availability, this could be a great time to explore that market segment for affordability and convenience.
What this means for sellers: While it’s still a seller’s market, buyers now have more choices, making it essential to ensure your home shines. Whether it’s staging, repairs, or thoughtful marketing, small investments now can pay off when competing with other listings.
Market Activity Reflects Seasonal Patterns
August saw a total of 724 closed sales, down 10.3% from July but up 6.3% compared to the same time last year. Pending sales also showed a slight increase year-over-year, fueled by continued interest in new construction homes. However, longer days on market (DOM)—now averaging 39 days—signal the start of a slower fall season, a typical pattern for this time of year.
What this means for buyers: The slower pace of sales means you may have more time to evaluate options and make a well-informed decision. This is especially true for new construction homes, which tend to stay on the market longer.
What this means for sellers: Seasonal slowdowns don’t mean homes won’t sell—it just takes the right preparation. Work with your agent to ensure your home is priced right and presented in the best possible light. From professional photos to strategic marketing, these efforts can help your property stand out even as the market cools.
Looking Ahead: A Market Moving Toward Balance
With a monthly inventory (MSI) of 2.9 months, Ada County remains a seller’s market, but the steady increase in inventory hints at a gradual shift toward balance. This means buyers may find more negotiating power, while sellers will need to adapt to the growing competition.
Final Thoughts:
August 2024 highlighted the natural ebb and flow of the real estate market, with gradual price adjustments and increased inventory shaping the landscape. For buyers, this is a great time to explore the expanding options and negotiate thoughtfully. For sellers, staying proactive and competitive can help ensure a successful sale in a changing market.