National v. Local

As we look at the national real estate market since 2020, the driving factors align with the trends we have experienced firsthand in Sun Valley -- a low supply of homes in comparison to the demand from buyers, historically low interest rates and a wave of new buyers entering the market. However, much of what has driven the national real estate market in the last two years is starting dissolve. With the rise in inflation over the summer, the Federal Reserve has been forced to hike interest rates pushing mortgage rates from historic lows of 2.75% to a 30-year fixed rate mortgage of around 5.5% today.

The work-from-home trend that boomed in 2020 seems to be plateauing, if not reversing, with major companies calling workers back to the office. It doesn't help that the stock market has declined 18.5% since the beginning of the year.

All of these factors seem to be taking a toll on the national housing market. According to the National Association of Realtors, since 2022, home sales have fallen six straight months in a row. That's the longest streak in eight years.

Here in Sun Valley, we saw the first indications of a slowing local real estate market this summer. As of September, the sold volume is down 29% from last year. The number of listings is down 28% and we are seeing a rise in price reductions. That being said, we are yet to see declining values locally. As prices come down, buyers are stepping up -- keeping the market quite balanced.

And according to Veranda, Blaine County is one of the richest counties in the U.S. All in all, barring a major economic crisis, we expect the market to remain in good shape through the Fall.