November 2024 Market Update: Shifting Toward More Affordable Options
As we head into winter, the Ada County real estate market is showing signs of adjustment. While inventory remains tight and sales have slowed, there are clear shifts that could benefit both buyers and sellers. Here’s what you need to know if you’re navigating the market this month.
More Affordable New Homes Are Becoming Available
For buyers looking at new homes, November brought a welcome change. The median price for new homes dropped by $52,000—the lowest price since March 2023—making them more affordable compared to previous months. This price decrease presents an opportunity for buyers who have been priced out of new construction in the past. However, it’s important to note that new homes are still priced higher than resale homes, so being flexible with location and features could open up more possibilities.
For sellers, the drop in new home prices means it may be time to reassess your pricing strategies, especially if you’re competing with newly built homes that are now more affordable. Buyers are becoming more price-conscious, so emphasizing your home’s unique value will be key in a more competitive market.
Slower Sales, but New Homes Still in Demand
While the market slowed down in November, new homes continue to see strong demand. 235 new homes were sold in November, which is a 46.9% increase from the same time last year. Despite a 18% drop in total sales compared to October, new homes are still performing well, with buyers flocking to the more affordable options available.
On the other hand, resale homes saw a more significant slowdown, with 425 homes sold, a 21% decrease from the previous month. This suggests that demand for older homes is softening slightly, giving buyers more time to consider their options, but also making the resale market more competitive for those looking for more traditional properties.
For sellers, if you’re listing a resale home, it’s crucial to understand that you may face more competition, especially with the shift toward more affordable new homes. Pricing strategically and ensuring your home is well-presented will be key to attracting serious buyers.
Fewer Homes Available, More Time to Decide
Inventory remains tight, but there are still homes available for buyers. In November, the overall inventory dropped by 9.8% from the previous month, with a 16.4% decrease in resale homes available. However, inventory levels are still 12% higher than last year, meaning buyers still have more choices than they did in 2023.
This tighter inventory means buyers will need to move quickly when they find the right property, but there’s a bit more time to make decisions compared to earlier in the year, especially for new homes. Nearly 58% of pending sales were for new construction homes, which suggests that buyers continue to favor newly built properties.
For sellers, it remains a favorable time to list, especially if your home is in good condition and priced competitively. While fewer buyers may be out there, the demand for quality homes is still strong, and homes that are priced right will still see attention.
Expect a More Balanced Market as We Head Into Winter
As we move toward the end of the year, the market seems to be balancing out. With inventory levels down and sales slowing, both buyers and sellers will need to adjust expectations. Buyers may find more opportunities in the new construction sector, which is seeing better pricing and a stronger selection, while sellers with well-maintained homes can still find success by pricing competitively and being patient.
Final Thoughts: Preparing for the Season Ahead
November 2024 showed a mix of shifting affordability and slower sales, which presents opportunities for both buyers and sellers. Buyers can find more affordable new homes, and sellers should focus on making their homes stand out in a market that’s adjusting to new pricing dynamics. Whether you’re looking to buy or sell, it’s important to stay informed and be ready to act when the right opportunity comes along.