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You probably already know that Idaho housing market inventory levels — as well as elsewhere across the U.S. — have been quite low relative to demand. This is particularly true in urban centers. More specifically, cities like Boise, Coeur d’Alene and Meridian continue to experience limited inventory as a result of high demand.
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.
However, Idaho continues to experience tight inventory. Right now, the current supply is a 2.9-month supply, which is much lower than the 5- to 6-month supply level that is characteristic of a balanced market.
The number of listings in Idaho has inched up recently. According to the latest figures available from RedFin, the Idaho real estate market had 9075 homes for sale in November 2024, which is down 1.3% from November 2023.
Idaho’s average home price is on an upward trend.
As of January 2025, the average home price in the state is $450,519, according to Zillow. That marks a 2.4% increase from the same month last year.
Several cities in the state have also seen price increases:
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 2025 compared to previous years.
Only about 14% of homes sold across the state of Idaho ended up selling for more than the original list price. 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 2025 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 2025, 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. Right now, the rate for a 30-year fixed-rate mortgage is 6.91%, according to Freddie Mac.
That said, experts are anticipating rates to gradually dip over the coming months. The Mortgage Bankers Association (MBA) expects rates to decline to 6% by the end of 2025.
Through the rest of 2025, home buyers in Idaho will still have a lot of competition for the available properties in Idaho. 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.