Ada County Residential Marketing Report December 2022

Ada County Residential Real Estate Market Report 2022

Compared to the last several years, 2022 brought a new set of challenges and opportunities. Demand for housing peaked during the pandemic, with too many buyers chasing too few homes, which lead to bidding wars and a highly competitive market. The Fed’s efforts to reset the housing market to bring balance and slow price appreciation have made 2022 a transitional year.

The increases in mortgage rates due to Federal Reserve rate hikes in the second half of 2022 lessened demand for housing, resulting in lower home sales and downward pressure on home prices.

Ada County ended the year with 20.8% fewer total sales than in 2021, and the lowest number of sales since 2014. Higher mortgage interest rates, combined with the swift home price appreciation in the last several years, have impacted buyers’ purchasing power and ability to afford increased monthly payments. As a result, some buyers have made budget adjustments and others have pressed pause on their home search.

That's an increase of 5.9% year-over-year. Higher mortgage interest rates, combined with the swift home price appreciation in the last several years, have impacted buyers’ purchasing power and ability to afford increased monthly payments.

Homes that closed last month spent an average of 26 days on the market before going under contract, compared to 13 days in December 2021.

With the continued downtick in inventory, the months supply of inventory in December sat at 1.4 months, meaning, if no additional homes were listed, the supply of homes would run out in less than two months. A "balanced" market is typically 6 months of supply.