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You probably already know that Idaho housing market inventory levels — as well as elsewhere across the U.S. — plummeted during the COVID pandemic. That particular trend generated countless headlines over a two-year stretch.
But here’s something you might not know.
As of last month, Idaho was one of only three states in the U.S. where housing market inventory has increased to pre-pandemic (2019) levels. This is based on a recent report from Fast Company backed by real estate listings data provided by Realtor.com.
Even the formerly red-hot Boise real estate market has gained inventory over the past couple of years, giving buyers some much-needed relief.
In July, Fast Company published an article that suggests a shift is occurring within the U.S. housing market. Specifically, they highlighted a nationwide rise in real estate inventory levels, with more listings becoming available in cities across the U.S.
For most of the country, inventory levels still haven’t returned to their pre-pandemic levels of 2019, despite these recent gains. But three states bucked that trend, and Idaho was one of them.
To quote the July 2024 Fast Company report:
“At the end of June, three states had returned to the pre-pandemic inventory levels of 2019: Texas (which first did so in May), Florida, and Idaho. Not too far behind are Tennessee, Colorado, Washington, and Arizona.”
Here are the numbers that support this claim:
A lot of this growth occurred over the past year, during which the total number of real estate listings in Idaho increased by around 20%.
Another shift has occurred when it comes to Idaho home values.
Before the pandemic, the median home price in the state of Idaho was rising at a steady pace. But price growth accelerated sharply in 2020, with the trend line nearly going vertical.
Consider the evidence. The median home price in Idaho rose from about $300,000 at the start of 2020 to an all-time record high of nearly $500,000 by June of 2022. Boise, in particular, was considered among the hottest real estate markets in the country back then, with home prices skyrocketing within months. This gave existing homeowners plenty of equity simply from appreciation in value.
But a lot has changed since then. After a brief downturn, Idaho home prices are now rising at a gradual pace that’s more in line with historical norms.
According to data reported by Zillow in July 2024, the average home value in Idaho was $460,955, an increase of 2.6% from a year earlier.
The chart above, provided by Zillow, shows the average home price for the state of Idaho going back to 2016. You can see the steep rise that began in 2020, the peak reached in summer 2022, and the more gradual growth of the past few months.
The inventory gains mentioned above have caused a kind of ripple effect in housing markets across the state of Idaho. Among other things, this trend has significantly reduced the percentage of homes that sell for more than the listing price.
This suggests that home buyers in Idaho have a bit more negotiating leverage in 2024 compared to previous years.
As of summer 2024, only about 14% of homes sold across the state of Idaho ended up selling for more than the original list price. By comparison, at the height of the pandemic home buying frenzy the “sold above list” percentage rose as high as 40%.
All of these real estate trends are related.
The unprecedented price growth of the past four years has squeezed many buyers out of the market. This reduction in demand caused a market correction and a general slowdown in home sales, which in turn has given buyers more negotiating leverage.
The housing market inventory growth occurring across Idaho brings good news for home buyers. Those who purchase a home in the Gem State later in 2024 should have more properties to choose from, and therefore a better chance for success.
Despite this growth trend, Idaho hasn’t fully shifted to being a buyer’s market.
Housing market inventory in the state has returned to pre-pandemic levels. But even in 2019 the state was experiencing a relative shortage of homes for sale compared to the number of buyers. So the market has basically gone from a severe shortage back to a mild shortage.
The takeaway: While the Idaho real estate market has become more buyer-friendly during 2024, purchasing challenges remain. In some of the more competitive markets, such as Boise and Nampa, some buyers might still struggle to find an affordable home to purchase.
Mortgage interest rates continue to remain elevated, particularly in comparison to pandemic-era rates. Right now, the rate for a 30-year fixed-rate mortgage is 6.78%, according to Freddie Mac, compared to 2.77% during the first week of August in 2021.
That said, experts are anticipating rates to gradually dip over the coming months. The Mortgage Bankers Association (MBA) expects rates to decline to 6.1% by the end of 2024 and hit 5.5% by the end of 2025.
Through the rest of 2024 and into 2025, home buyers in Idaho will have more properties to choose from, thanks to an ongoing rise in inventory.
Even so, you’ll want to bring your A-game when entering the market.
Here’s how to succeed when buying a home in Idaho:
Sammamish Mortgage works with home buyers and homeowners all across the state of Idaho. We offer transparent pricing, quick closings, and some of the most knowledgeable mortgage professionals you’ll find anywhere. Get an instant rate quote and start the mortgage process today!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.