January 2025 Market Update: A Fresh Start with New Opportunities for Buyers and Sellers
As we welcome the new year, January’s real estate market in Ada County has shown both stability and a few key shifts. With a slight increase in home prices and inventory rising, this month presents unique opportunities for both buyers and sellers. Here’s a breakdown of how the data impacts you and what you should keep in mind as we move further into 2025.
New Homes Lead the Way
In January, new homes made up a larger portion of sales compared to December, accounting for 40.6% of all homes sold. This shift caused a slight increase in the overall median sales price (MSP), which rose to $538,000, up 4.5% year-over-year (YOY). New homes in particular saw a 3.2% increase in their MSP, with a difference of around $28,000 more than resale homes.
What this means for buyers: This is a great time to consider homes that are a bit older or need some updates. New construction also remains a strong option. While these homes generally come at a higher price point, there’s a growing selection available, and many new builds are still moving quickly.
What this means for sellers: If you’re selling a new home, you can expect strong demand, as new construction continues to make up a growing share of the market. While there has been a drop in overall sales during the winter months, new homes are still attracting attention, especially as buyers are drawn to the variety of options available. For resale home sellers, there remains a healthy market for well-priced homes, particularly those positioned as more affordable alternatives to newer builds.
Inventory Levels See Modest Increase, but Prices Still High
Inventory levels saw a modest increase in January, with the number of resale homes available rising by 3.1% month-over-month. While the overall inventory increase was small, it’s worth noting that inventory is still higher than it was last year, providing buyers with more options.
What this means for buyers: With more inventory becoming available, buyers have more options, especially in the resale market. However, it’s important to stay mindful of the higher prices in some of these listings. Keep an eye out for price reductions or homes that are priced more competitively, as they could present opportunities in the coming months.
What this means for sellers: If you’re considering selling, there’s a growing inventory, which means more competition for your listing. Pricing your home competitively is crucial, especially since many homes in inventory are priced higher than what sold in January. Working with a REALTOR® to determine the right price point can make all the difference.
Days on Market: A Slight Slowdown
Homes in Ada County are taking a little longer to sell, with the average days on market increasing to 54 days—a 4-day increase from December. Notably, resale homes saw the most significant increase in days on market, with average DOM jumping by 13 days.
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 are still moving quickly, so don’t wait too long if you find something you like.
What this means for sellers: With homes staying on the market longer, it’s more important than ever to make sure your home is well-priced and well-presented. Proper staging, marketing, and pricing will help reduce the time your home sits on the market and keep it competitive.
Looking Ahead: A Promising Start to 2025
January’s data shows positive signs for the year ahead. With more homes in inventory and a steady demand for new construction, buyers have more choices, and sellers still have opportunities to succeed by pricing their homes competitively.
Final Thoughts:
Whether you’re buying or selling, January has set the stage for a promising 2025 in Ada County’s real estate market. Buyers can take advantage of increased inventory and a growing number of new homes, while sellers can benefit from steady demand, particularly in the new construction segment.