October 2024 Market Update: A Resilient Market with Room for Both Buyers and Sellers
As we move into fall, October brought both steady growth and a few shifts to the Ada County real estate market. With a mix of slight price increases, more sales, and a decrease in inventory, October’s data highlights the resilience of the market and presents opportunities for both buyers and sellers. Here’s a closer look at the numbers and what they mean for you.
Home Prices Show Modest Increase, New Construction Leads the Way
The median sales price (MSP) for Ada County homes in October was $540,000, which remained unchanged from the previous month. However, there was a noticeable 2.1% increase in resale home prices (to $530,000) and an 8.1% increase in new construction prices, with new homes reaching a median of $568,416.
What this means for buyers: The market for new construction homes is seeing significant price increases, with the majority of new homes priced above $400,000. Buyers should be prepared for higher prices, especially in the new construction sector, but may find more options in resale homes, where the pricing remains more flexible.
What this means for sellers: If you’re selling a resale home, now could be a great time to take advantage of the 2.1% MOM increase. For new construction sellers, expect continued high demand for homes, particularly those priced above $400,000, but with potential competition from resale homes as inventory levels remain higher than last year.
Sales Activity Climbs, Pending Sales Show Mixed Trends
October saw a 12.4% increase in homes sold month-over-month (MOM), with 805 homes sold in total. This represents a 44.5% increase from October 2023, the largest year-over-year (YOY) jump since August 2011. New homes led the charge, with a 50.8% YOY increase in sales, while resale home sales grew by 41.6% YOY.
However, pending sales showed a 9.7% decrease from September, marking the first decrease since July. The drop was more pronounced in resale homes, while new homes saw a smaller decline.
What this means for buyers: Increased sales, especially in new construction, signal that demand remains high, despite a slowdown in pending contracts. Buyers should be ready to act quickly, especially on new homes, which may not stay on the market long.
What this means for sellers: Strong sales growth is good news, but pending sales trends suggest the market may be cooling slightly. Sellers should be strategic about pricing and timing, especially as inventory shrinks and competition increases.
Inventory Declines Slightly, Buyers Have More Choices Than Last Year
Inventory fell 2.1% MOM, driven by a 10% drop in resale homes available for sale. However, the number of homes available remains 12.2% higher than October 2023, providing more choices for buyers compared to last year. Notably, homes that remain in inventory have been on the market for an average of over two months, which reflects the overall slower pace of the market.
What this means for buyers: Although inventory is decreasing, there are still more homes available compared to last year. Buyers may find more opportunities, particularly in the resale market, where inventory levels are still relatively higher than in 2023.
What this means for sellers: With fewer homes on the market compared to earlier months, sellers may face less competition. However, homes that are still on the market may require more effort to sell, with properties staying on average for longer periods before closing.
Days on Market Decline, Especially for New Homes
In October, the average days on market (DOM) for all single-family homes was 42 days, marking a 7.7% increase from last year. However, new construction homes saw a significant 12.7% decrease in DOM, with 49% of new homes selling in under 30 days. This marks a shift, as new construction homes had previously been staying on the market for longer periods.
What this means for buyers: Buyers may notice a faster-moving new construction market, as more homes are closing quickly. Resale homes may take a bit longer to finalize, so buyers have a little more time to make decisions, especially in the resale sector.
What this means for sellers: If you’re selling new construction, the quicker pace of sales presents an opportunity to close deals faster. However, for resale sellers, patience may be required, as these homes remain on the market longer compared to newly built properties.
Looking Ahead: A Balanced Market with Opportunities for All
The market in October remained resilient, with increased sales, a slight price increase, and continued strong demand for new homes. The decrease in pending sales and inventory may signal a slight cooling, but overall, the market remains active.
Final Thoughts:
October’s numbers reflect a healthy market with opportunities for both buyers and sellers. Buyers should act quickly on well-priced homes, particularly in the new construction sector, while sellers can still take advantage of increased demand and a relatively low supply of homes. With the market balancing out, both parties need to be strategic to make the most of current trends.