Local Market Report
By Kris Smith
You may be wondering, “What is going on with the housing market this Spring of 2024?” Kris Smith, an Agent at Kestrel Realty Group, guides you through the Moscow housing market. Whether new or experienced, Kris offers a thoughtful explanation of some of the current trends.
Market Report
Greetings all! Well, here we are in the early spring housing season. The Spring Market is loosely defined as March, April and May. Welcome to the beginning of what is traditionally the busiest season of the year for residential real estate. So, what is our Moscow-Latah County housing market looking like? Let’s look at active homes listed for sale. This gives us a good idea of whether this is a Buyer’s or Seller’s market. The rule of thumb is that a balanced market has a six month’s supply of homes available for sale. Thirty homes available represents a one month’s supply. A balanced market of six month’s supply would be 180 homes available. Any more than 180 homes incrementally represents a Buyer’s market that waxes stronger the higher the amount of available homes grows over 180. Conversely below 180 homes available the greater the Seller’s market it becomes. As of this writing in early March, Moscow is averaging 54 active homes for sale. This includes all categories, Townhomes, Condominiums, Mobile Homes and Single Family and Single Family with acreage. If we look at only Single Family Homes and Single-Family Homes with acreage that number drops to 37. In all of Latah County: 73 and 55 homes respectively. What this means is we are experiencing a strong Seller’s Market. This has been the trend in Moscow for quite a while and should come as no surprise. So how do home buyers try and navigate this local market?
Take a step back and look at the historical averages for mortgage interest rates. This will help you have some long-term perspective. From 1971 until 2024 mortgage rates averaged 7.73%. The all-time high was 18.63% in October of 1981 and the all-time low was 2.65% in January of 2021. We have been a local housing market with supply shortage issues, particularly in the entry level range. Add to that the high percentage of current homeowners who have re-financed at very favorable interest rates and you see a reluctance to list existing homes to purchase next homes at higher interest rates. With fewer homes coming to market, it is very important that buyers be prepared to move quickly. If you see a home that interests you know for sure there are many other buyers looking too. Keep your eye on current mortgage interest rates. In February 6.94%, as of this writing 6.99%, a year ago 6.65%. There was some expectation that with inflation numbers improving we could look forward to a lowering of interest rates. The Federal Reserve has elected not to lower rates up to this point. That being stated, buyers should continue to build savings to enhance down-payments. Incorporate a long-term view of interest rates and understand that a return to historically low interest rates is less likely and a normalization around current levels is more likely. Instead of waiting vainly for a certain interest rate level, shift gears and focus on what actions you can take to get into your next home. Stay in touch with, or start the conversation with your lender. Ask them for their suggestions and strategies for getting you prepared to make a successful offer on a home you set your sights on. Don’t have a lender, call me I can help.
Get in touch with a realtor or two, find one you have confidence in and feel comfortable working with. Then, share your plans, goals and strategy. When you’re ready, start scheduling home showings with those that catch your interest! Have fun! Instead of thinking “What’s the best time to buy a home?”, start thinking “When has it ever been a bad time to own?” Stop dreaming and start doing!
Call Kris Smith: 208.596.1505