September 2024 Market Update: Adapting to Changing Conditions
As we step into the fall season, September brought a mix of steady demand and emerging challenges to the Ada County real estate market. Whether you’re actively buying or selling, or simply observing the shifts, understanding the numbers behind these changes can help guide your next move. Here’s a closer look at how the market performed last month and what it could mean for you.
Home Prices Hold Steady Amid Tightening Inventory
The median sales price (MSP) for single-family homes in September landed at $534,900, showing a modest 0.9% decline compared to the same time last year and a slight 0.3% dip from August. Resale homes followed a similar trend, with the median price rising 1.9% month-over-month (MOM) to $535,000, signaling that demand for existing homes remains resilient. New construction prices stayed relatively stable, with a small decrease of 4.3% from the previous year.
What this means for buyers: While prices for resale homes may be inching higher, the slight overall decline in the market could present some opportunities for buyers, especially if they’re flexible with their timelines. For new construction, expect steady pricing, but be prepared for possible negotiation room as these properties tend to stay on the market longer.
What this means for sellers: If you’re selling a resale home, the increase in month-over-month prices signals that demand continues to push prices upward. For new construction sellers, while prices remain consistent, the growing number of homes on the market means standing out through effective marketing and appealing presentation will be key.
Inventory Continues to Shrink, but More Pending Sales Suggest Stability
Inventory levels continued to decrease in September, contributing to a tighter market. The months’ supply of inventory (MSI) dropped to 2.7 months, slightly down from 2.9 in August. However, pending sales saw an uptick, indicating that despite the shrinking inventory, buyer demand remains high, especially for new construction homes.
What this means for buyers: Fewer homes on the market may mean more competition, but with a steady number of pending contracts, the market is still moving at a relatively quick pace. Buyers may need to act fast, particularly for well-priced properties, but with fewer options, the market could become more predictable.
What this means for sellers: While it’s still a seller’s market, the lower inventory and rising pending sales suggest continued strong demand. Sellers will need to ensure their homes are presented well to stand out in an increasingly competitive market. From staging to strategic pricing, small investments can go a long way.
Market Activity Reflects a Slower Pace, But New Construction Leads the Way
September saw 716 homes sold, which represents a 10.3% decrease from August’s total of 724. However, this is still a 6.3% increase compared to the same time last year, showing year-over-year growth despite a slight slowdown. New construction properties continued to outperform, surpassing the previous year’s sales by 58.4%.
Days on market (DOM) have increased slightly, now averaging 43 days, indicating a shift toward a more measured pace as we move into the fall months. This slowdown is typical for this time of year but may also reflect inventory shortages and less urgency in the market as buyers wait for ideal opportunities.
What this means for buyers: The slowdown in overall market activity gives buyers more time to consider options, especially in the new construction sector. However, inventory remains limited, so it’s important to stay proactive and ready to move quickly when you find the right property.
What this means for sellers: The slight increase in days on market doesn’t mean your home won’t sell—it just means you’ll need to be patient and strategic in how you position your listing. Effective pricing and presentation will remain crucial in attracting the right buyer, even as the market slows down slightly.
Looking Ahead: A Market That Still Favors Sellers, But Change is in the Air
With inventory levels still tight and pending sales on the rise, Ada County’s real estate market remains in favor of sellers, though the increased days on market and slight shifts in pricing suggest we’re approaching a more balanced environment.
Final Thoughts:
September 2024 demonstrated that Ada County’s real estate market is not immune to seasonal slowdowns, but the fundamentals remain strong. Buyers may have more time to make decisions, while sellers will need to adapt their strategies to stand out in a market with less inventory. As we head into the fall and winter months, staying informed will be key for both buyers and sellers to navigate the evolving landscape.