Sales Numbers & Market Activity
In recent months, Idaho has seen moderate fluctuations in home sales, reflecting both economic factors and seasonal changes. Sales activity generally increased in urban areas like Boise and Meridian, yet more rural regions showed steady, stable numbers. For perspective, total home sales have decreased slightly from the same quarter last year, which was marked by higher interest rates and inflation. Yet, demand remains strong, driven by Idaho’s appeal as a more affordable and scenic option compared to other markets in the Northwest.
Year-over-year, sales have softened somewhat, particularly in high-demand regions like Ada and Canyon counties, where home prices surged during 2023. However, the cooling of the market has provided new opportunities for buyers who might have felt priced out during last year’s peak season.
Price Trends & Appreciation
Idaho’s median home price this quarter remains above the national average, underscoring the state’s growing popularity and value. In Boise, the median home price hovered around $525,000, reflecting a slight increase from last year but relatively stable month-over-month. For potential buyers, this steadiness might suggest a favorable time to explore options in Idaho’s capital region.
In areas like Twin Falls and Idaho Falls, we’ve observed price appreciation driven by new amenities, community investments, and out-of-state interest. Both regions saw appreciation rates between 5-7% this quarter, a slower pace than in previous years but still indicative of strong demand. This cooling is actually beneficial for affordability, giving first-time buyers and new Idaho residents a more accessible entry into the market.
What’s Trending?
1. New Construction Boom
As home prices remain elevated in well-established neighborhoods, new construction is thriving. Areas like Eagle and Kuna are seeing significant development activity, with builders aiming to meet demand for modern, customizable homes. This trend is expected to continue, providing more housing options for buyers seeking both affordability and customization.
2. Popular Property Features
Today’s Idaho homebuyers are gravitating toward features that prioritize comfort and energy efficiency. Smart home technology, larger backyards, and energy-efficient appliances have become highly sought-after features in the Idaho market. Many buyers are also prioritizing homes with remote workspace options, an after-effect of the post-2020 remote work trend that persists today.
3. Move Toward Smaller Towns
Interestingly, some buyers are opting for smaller towns outside the Boise metro area. Cities like Nampa and Caldwell offer a blend of affordability, quality of life, and access to natural beauty—perfect for those who prioritize a more laid-back, close-to-nature lifestyle. This shift is also driven by affordability, as home prices in these towns are often more accessible than in more centralized areas.
What’s Driving the Market?
Economic Factors
Idaho’s job growth and low unemployment rate continue to draw attention. Sectors like tech, healthcare, and manufacturing have boosted the state’s economy, increasing housing demand. While the Federal Reserve’s stance on interest rates remains cautious, we’ve seen rates stabilize over the quarter, giving buyers and sellers more predictability when planning real estate decisions.
Inflow of Out-of-State Buyers
Idaho’s appeal extends beyond its borders, and many new residents come from states like California, Washington, and Oregon, seeking lower taxes, more affordable homes, and a scenic lifestyle. This steady inflow has helped sustain demand, particularly in suburban and rural communities where prices are slightly lower.
Investment Opportunities
Idaho’s real estate market is ripe with investment potential, especially in short-term rentals, which are popular around tourist-heavy areas like Sun Valley and Coeur d’Alene. Investors are also targeting college towns like Moscow and Rexburg, looking at rental income opportunities with built-in demand from students and faculty.
Wrapping Up
Overall, Idaho’s real estate market has shown resilience and adaptability, with trends indicating a balanced market heading into the end of 2024. As demand shifts, new construction increases, and market trends settle, there are unique opportunities for all types of real estate players in Idaho. Whether you’re buying your first home, selling in a high-demand area, or looking to invest, Idaho’s market trends give plenty of reason to stay informed and engaged.
If you’re ready to dive deeper into Idaho’s real estate landscape or make a move, keep following our blog for the latest updates. And as always, feel free to reach out for personalized guidance on your next real estate journey!