Is now a good time to sell a house in Idaho? If you’re looking to sell your Idaho home, you will first need to check out the housing market and the typical home prices in the state.
The real estate market nationwide began changing during the final months of 2022. The Federal Reserve has increased mortgage interest rates on loans to combat inflation. For instance, the 30-year, fixed-mortgage interest rate hit 6.29 percent by September 22, 2022.
Yet, what are the housing market conditions in Idaho? You will need to understand the market in the state to set the best asking price when selling your current home. If you’re a first-time seller, you need to figure out the best time to sell your place.
So, is now a good time to sell a house in Idaho? To find out the answer to that question, keep reading about real estate statistics and the seller’s market trends in Idaho.
Real Estate Statistics in 2022
Before we delve too far into the Idaho real estate market, it’s important to consider the nationwide real estate statistics for 2022. First, the home values of newly listed properties grew 13.5 percent compared to March 2021. The typical home sales price has also increased 26.5 percent since March 2020.
The median list price in March 2022 reached $405,000, which grew by 8 percent over the previous year. One of the reasons for the growth in home sale prices is low inventory. Nationwide, the inventory of active listings dropped by 18.9 percent. At the same time, buyer demand grew, which led to bidding wars and a significant increase in listing prices.
Despite the growth, housing prices may drop in the coming months since interest rates continue to climb. By March 2022, interest rates had grown to 4.17 percent. That increased from the 3.5 percent interest rate in January 2021 on all 30-year, fixed-rate mortgages.
Since then, the interest rate has only grown to 6.29 percent toward the end of September. Other important real estate statistics delve into demographics. About 80 percent of people aged 65 and older own homes, while only 38.3 percent of people under age 35 are homeowners.
People aged 43 to 57 years old (generation X) and older millennials make up the largest portion of home buyers. Furthermore, the median home price is $357,300 in 2022. Home prices have skyrocketed in recent years, with the median house price jumping by $40,200 from 2020 to 2021.
Yet, the number of houses sold in February 2022 dropped by 2.46 percent from the prior year. Nonetheless, houses get sold relatively quickly, with homes on the market an average of 38 days, even in the colder month of March.
Idaho Real Estate Overview
In Idaho, home buyers still exhibit high demand in the real estate market. Despite rising mortgage rates, home prices grew by 5 percent in August 2022 compared to the prior year. The median price of homes in Idaho was $484,300. However, the number of home sales completed dropped by 25.2 percent year-over-year.
Essentially, 2,020 houses got sold in August 2022, which dropped from the 2,706 homes sold the previous year. Homes in Idaho were on the real estate market for 31 median days before getting sold.
Home sellers should be aware that it may take slightly longer to sell their houses than in the prior year in Idaho. The median number of days on the market has increased by 18 year-over-year.
The metro areas in Idaho that have the fastest-growing home sale costs include:
- Star, Idaho
- Lewiston, Idaho
- Hayden, Idaho
- Mountain Home, Idaho
- Eagle, Idaho
- Boise, Idaho
- Post Falls, Idaho
- Nampa, Idaho
- Twin Falls, Idaho
- Rathdrum, Idaho
For instance, the town of Star saw an 11 percent increase in home sale prices while Mountain Home experienced an 8.7 percent growth.
In Idaho, the housing inventory grew by 11.4 percent year-over-year as of August 2022. In total, 9,077 Idaho homes were on the housing market in August. However, the number of newly listed homes dropped by 25.7 percent year-over-year. That number reached 2,417 houses.
The housing inventory supply reached three months, a one-month increase from the previous year. Further, 15.5 percent of Idaho homes sold above their listed asking price. Essentially, the market value of Idaho homes has grown quickly. That means potential buyers are willing to pay top dollar, even if that means going above the asking price.
The sale-to-list price also declined by 2.2 points to 98.1 percent. Home selling in Idaho also depends on whether you’re facing a buyer’s market or a seller’s market. As the mortgage rates increase and the housing inventory grows, you’re less likely to see a seller’s market. Real estate experts predict that the market will favor buyers soon.
Idaho Real Estate Market Trends
The real estate market trends in a metro area like Boise, Idaho include historically low housing inventory rates and high demand. These trends appeared during the first two years of the COVID-19 pandemic. As such, you could set a high price for your home when putting it on the market during the first years of the pandemic.
Today, however, the housing boom has started to slow in Idaho. No longer are bidding wars common, and buyers are no longer waiving contingencies for sellers to accept their offers. Further, 61 percent of listed homes dropped their asking prices in June 2022.
Boise home prices may continue increasing, but the growth of that increase has slowed down. For instance, Zillow predicts that the Boise metro area’s housing market will raise home prices by 12 percent from June 2022 to June 2023.
Today, Boise is one of North America’s most expensive housing markets. For example, the typical home prices in Boise have reached 72 percent higher than what median-income households can afford in the area.
Essentially, while the local market trends may have started to favor buyers, the high home sale prices still make it more difficult for many buyers to afford a new home.
Housing inventory has also started to change, with new construction growing by 338.4 percent compared to the previous year. However, despite the inventory increase, the costs of construction materials have greatly increased due to inflation.
As such, newly constructed homes in Ada County, Idaho were priced at a record high of $690,000 in June 2022. That is a 24.9 percent jump from June 2021, when these houses cost as high as $552,400.
Essentially, with home prices still growing, many counties in Boise still favor sellers. Since it’s currently a seller’s market, you won’t need to worry about the housing market in Idaho cooling down just yet. While inventory remains rather small and the mortgage rates are not yet causing major issues, home prices continue to grow, and sellers currently have the upper hand.
Nonetheless, the housing market nationwide is in a transition. With inflation rising and the economy remaining stationary, real estate experts predict a recession in the future. Yet, with less new inventory, housing costs are expected to remain high.
Is Now a Good Time to Sell a House?
Due to the housing market trends in Idaho, is now a good time to sell a house? The current period is favorable to sellers, so you should start by finding an experienced real estate agent who can get your house sold at a good price.
Your realtor will price your home competitively to find the right buyer and get a high offer. While the time is right for putting an Idaho home on the market, you will need to make your home attractive to potential buyers. As such, make sure to clean and declutter the house. Also, complete any necessary renovations and repairs.
To find out how the home selling process works, talk with your realtor. Ask the realtor when to list your home on the market and at what price. Spring and summer tend to have the most interested buyers looking to move. That way, families can move into their next home before the new school year begins.
If you live in Idaho, the current seller’s market should still favor you putting your home on the market. However, you must remember that home price gains are slowing down in Idaho.
So, is now a good time to sell a house in Idaho? Whether you are downsizing or have a job offer in another state, sellers can now benefit from selling a home in Idaho. The housing market is still booming while inventory is tight.
Do you want to sell a house fast in Kuna? Seek out real estate investors and cash home buyers in Idaho. Since cash buyers don’t require a mortgage loan, you can complete the home sale in only a few short weeks. We buy houses Boise locals enjoy, so call us today!