December 2024 Market Update: Stability in a Shifting Market
As we approach the end of the year, Ada County’s real estate market shows signs of stabilizing. While home prices and inventory fluctuate, the overall landscape remains healthy, offering opportunities for both buyers and sellers. Here’s a breakdown of what you need to know this month.
New Homes Show Increased Demand, Prices Stay Steady
In December, the median sales price (MSP) for all homes in Ada County was $529,900, a 2.5% increase compared to last year. New homes saw a slight price increase, with an MSP of $534,818, about $15,000 higher than resale homes. While new construction prices rose slightly, the rise was driven in part by more high-end properties selling, with 9.7% of new homes selling at or above $1M.
What this means for buyers: New homes continue to be a strong option, especially as prices remain relatively stable. If you’re in the market for a newly built home, the price points for new construction may be a bit higher, but you’ll still find competitive pricing compared to resale homes.
What this means for sellers: If you’re selling new construction, the slight price increase suggests strong buyer interest, especially at higher price points. For resale sellers, maintaining competitive pricing will be essential, especially given the slower pace of sales in the resale sector.
Sales Activity: More New Homes Sold, Fewer Resale Homes
New home sales were robust in December, with 282 new homes sold, representing a 46.9% year-over-year (YOY) increase. In comparison, resale home sales lagged behind with 397 homes sold, a 6.6% drop from November. The shift towards new construction is clear, with new homes now making up 42% of total sales, up from 36% in November.
What this means for buyers: If you’re looking for a newly built home, the market is ripe for options, with an increasing percentage of new homes available. However, inventory for resale homes is decreasing, so it may take a little more time to find the right fit.
What this means for sellers: New construction continues to dominate, but resale sellers shouldn’t be discouraged. A well-priced, well-presented home can still attract buyers, particularly those looking for homes with character or specific locations that new builds may not offer.
Pending Sales and Inventory: New Homes Dominate
In December, 64% of pending sales were for new homes, indicating strong future activity in the new construction market. Inventory for new homes also remained higher, with 57% of available homes in inventory being new builds. Interestingly, the number of existing homes in inventory dropped by 28.7%, while new home inventory only declined by 4.5%.
What this means for buyers: With new homes making up the majority of pending sales and inventory, buyers looking for newer properties will find plenty of opportunities. However, inventory is tighter for resale homes, so it may be a more competitive environment in this segment.
What this means for sellers: Sellers of new homes are in a favorable position, with high demand and steady pricing. Resale home sellers should be prepared for fewer buyers, as inventory continues to shrink, making it essential to be competitive in pricing and presentation.
Days on Market: Slight Slowdown, Especially for New Homes
The average number of days on market increased to 50 days for all homes, reflecting a 2.0% increase year-over-year. New homes saw a notable 16.9% MOM increase in days on market, although this was influenced by homes under construction that were still being sold in December. When excluding outliers, the market pace remains relatively consistent.
What this means for buyers: Buyers will likely find more time to make decisions as homes are staying on the market a bit longer. However, new homes, especially those nearing completion, are still moving quickly, so being ready to act fast will help.
What this means for sellers: Homes are taking a bit longer to sell, especially new construction. Sellers may need to be patient, but those who market their homes well and price them competitively can still find success, even in a slightly slower market.
Looking Ahead: A Balanced Market with Room for Opportunity
As we move into 2025, Ada County’s market shows signs of balance. With strong demand for new homes and continued buyer interest despite slower resale sales, there are opportunities for both buyers and sellers. The shift toward new construction and a more stable inventory means that both sides need to stay informed and flexible to navigate the changing market conditions.
Final Thoughts:
December 2024 highlights a market that is stabilizing after a busy year, with new homes continuing to see strong sales. Buyers will find opportunities in new construction, while resale sellers should be strategic with their pricing and marketing. With inventory low and interest rates continuing to rise, working with a REALTOR® will help you expertly navigate the current market.