Idaho Real Estate Market: What to Expect in 2024 and 2025?

The current median home sale price of $495,200 is stable with short-term adjustment. Moreover, homes spend only 36 days on the market. This indicates that the Idaho real estate market is pretty much competitive.

The average months of home supply are 3 months YoY. A market with fewer months of supply indicates a seller’s market. However, the number of homes sold up by 15.5% YoY in July. There were 2,342 homes sold in July 2024, up by 2,028 homes sold in July 2023.

Such inactivity in the market is mainly due to the recent NAR settlement. People are anxious about the selling prices and agents’ compensation.

The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed suit. It will probably reduce the home selling prices. As a result, buyers will have improved affordability along with low mortgage rates. Here are some tips for you to sustain in the market:

• If You Are a Home Buyer: Homes for sale (8,303) are growing at 4%. Along with this, the expected drop in home prices can benefit you. The low mortgage interest rates at 5.94% are now in buyers’ favor. Also, in case of low housing demand and prices, you can request seller concessions.
• If You Are a Home Seller: You can lock in Idaho’s current high home prices. The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sales before prices potentially drop.

So, How Is the Real Estate Market in Idaho?

Balanced!

The number of homes for sale increased by 4% in July 2024 compared to the previous year. This is the 4th consecutive month the housing market has witnessed such growth. Other important facts are:

• Median Days on Market: The median days on the market for homes for sale are 36 days, up by 7 days YoY. This trend suggests a high demand in the Idaho real estate market.
• Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 4%. There are 8,303 homes for sale in Idaho, with an average supply of 3 months.
• Average Home Prices: The median home price in Idaho is $495,200. But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 98.6%, up by 0.4 pt YoY.
• Home Sales: As per July 2024 data, home sales increased by 15.5% YoY!
• Average Rent Prices: Rental costs vary statewide. The median rent is $2,000 with a month-over-month change is +$39.

Why Is Idaho a Seller’s Market Now?

Idaho real estate market has balanced inventory of homes for sale. Besides this, homes spent only 36 days on the market which depicts the competitive market.

Let’s look at some more facts:

• Fewer Days on the Market: Homes are spending only 36 days on the market before going under contract. This is visible in metro cities like Post Falls and Caldwell where the average days on the market is between 21 to 40 days.
• Multiple Offers on Homes: Post Falls has got 75 and Caldwell got 48 in Redfin’s Compete Score. It means the housing market in Idaho is very competitive. It shows that many homes get multiple offers, some even sold without contingencies.
• High Sale-To-List Price: The average homes sell for about 1% below the list price whereas hot homes sell for around the list price. The average sale-to-list price ratio in Post Falls is 98.6%.

• Homes Sell Above List Price: On average, 14.7% of homes sell above list prices. However, in July, 42.9% of homes experienced price drops, compared to 34% last year. This trend indicates a gradual shift toward a buyer’s market.

Idaho Housing Market Predictions 2024

Here are the predictions for Idaho’s housing market in the remaining months of 2024 and 2025:

1. Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market. The historically high interest rates averted buyers in 2023. But the easing inflation and stabilizing rates will bring back house hunters.
2. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across ID YoY, reaching $495K in July 2024. By mid-2025, Boise is expected to see a 1.4% increase in home prices. Coeur d’Alene may rise by 2.7%, and Pocatello could see a 3.2% increase.
3. New Home Construction Sales Will Increase:  As per the Building Permits Survey, 10,027 new private housing units were authorized, in July 2024. Idaho’s housing market’s high demand will be served with the new constructions.
4. iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.

Bonus Predictions: Buyer Broker Commissions Will Be Zero!

In a shocking turn of events, the NAR settlement has completely eliminated buyer agent fees from the MLS. Let’s understand its impact:

1. Buyer Agents Will Be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
2. Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
3. Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
4. Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.

When Will the Housing Market Crash in Idaho?

A housing market crash in the Gem State is unlikely.

Idaho’s economy is strong, and its housing market shows resilience. Idaho’s cost of living is 4% higher than the national average. The average cost of living for one person in Boise, ID, is $2,407, making it one of the most expensive places to live.

Idaho’s economy remains robust, though the state faces challenges. The median household income has increased to $72,580 in 2024. Home prices in Idaho are expected to keep rising.

Boise could see a 1.4% increase by mid-2025, while Coeur d’Alene might rise by 2.7%, and Pocatello could go up by 3.2%. This economic stability and low cost of living make a housing market crash in Idaho unlikely.

2024: Is It a Buyers’ or Sellers’ Market Now?

Idaho real estate market favors sellers in 2024. (And buyers, too!). The Idaho real estate market is expected to lean more in favor of the buyers in the latter half of 2024.

Home prices are rising slowly, and the number of homes for sale has increased by 1.4% YoY. Buyers now have more choices. With mortgage rates around 5.94%, buyers also have more purchasing power.

Consequently, more homeowners are likely to list their homes on Idaho MLS. So, whether you are looking for a condo in Athol or a single-family primary home in Post Falls, you will find your dream home in the coming months.

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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.

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