Idaho Housing Market Trends
According to Redfin, in September, Idaho home prices were up 2.5% year on year. The number of homes sold plummeted by 30.9% while the number of properties for sale increased by 9.7%. While the demand is dropping in the Idaho housing market the inventory is increasing which is a good sign for buyers. Homes are selling for a median price of $472,900.
There were 1,928 homes sold in September this year, down from 2,799 homes sold in September last year. The median days on the market was 41 days, up 25 days year over year. There were 8,807 homes for sale in Idaho, up 9.7% year over year. The number of newly listed homes was 2,071 and down 31.3% year over year. The average months of supply are 4 months, up 2 months year over year.
Top 5 Metros in Idaho with the Fastest Growing Sales Price in September:
Star, ID +11.0%
Lewiston, ID +10.0%
Hayden, ID +9.9%
Mountain Home, ID +8.7%
Eagle, ID +8.2%
Idaho Housing Market Overview Q2 2022
The following analysis of select counties of the Idaho real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. The economy and job market are still strong, though growth is slower than in the prior 18 months. Demand appears to be strong despite the increase in homes for sale, which usually advantages buyers.
However, sellers remain in control despite slowing price rises. Northern Idaho sold homes in 83 days and southern Idaho in 40 days. Ada County in southern Idaho and Kootenai County in northern Idaho sold homes quickest again. Here are some of the key indicators and trends that were seen in the second quarter of this year.
Idaho Home Sales
6,403 homes were sold in the second quarter of 2022, reflecting an annual growth rate of.8%.
Sales were up 23.5% from the first quarter of 2022.
Listing activity increased by more than 90% year on year, with the average number of homes on the market 164% more than in the first quarter.
Sales increased in Boundary, Bonner, and Shoshone counties in northern Idaho and increased in Ada, Gem, and Canyon counties in southern Idaho as compared to the same period last year.
Pending sales were 4.4% higher than in the previous quarter.
Idaho Home Prices
The average home price in Idaho increased 15.6% year on year to $643,954.
Sale prices were 5.1% higher than in the previous quarter.
Prices in Kootenai and Shoshone counties in the north, and all but Gem and Blaine counties in the south, were higher in the first quarter of 2022.
Prices increased by double digits in Kootenai and Shoshone counties while falling in Boundary and Bonner.
In all of the southern counties covered by this survey, sale prices were higher than a year earlier.
Home prices increased by 2% in Northern Idaho counties and 19.8% in Southern Idaho counties.
Idaho Housing Market Forecast 2023
According to Zillow, the typical value of homes in Idaho is $471341. Idaho home values have gone up 5.4% over the past year. However, prices are declining in the Idaho metro. In Idaho, sellers are still in a “quite comfortable situation,” with many sellers opting to stay put if they can lock in a low-interest rate. And if they pull back and inventory stops expanding, you won’t see many price drops.
If enough sellers price their homes reasonably, they may still sell their homes for more than the last year. However, Boise Metro is the first to see the year-over-year price drop according to Zillow. For months, it has consistently ranked among the most “overvalued” housing markets, according to Florida Atlantic University research. Moody’s Analytics recently deemed it the nation’s most “overvalued,” saying Boise home prices are nearly 72% overvalued based on market fundamentals.
In Zillow’s Home Value Index, Boise was also among the first to show a year-over-year decrease in home values. According to the index’s seasonally adjusted statistics through August 31, the city had a tiny -1.2% drop, with an average home value of $515,432, down from $521,690 as of August 31, 2021. That dip is slightly bigger using Zillow’s raw home value index data focused on the Boise metro area (3% year-over-year decline).
In Idaho, sellers are still in a “quite comfortable situation,” with many sellers opting to stay put if they can lock in a low-interest rate. And if they pull back and inventory stops expanding, you won’t see many price drops. If enough sellers price their homes reasonably, they may still sell their homes for more than the last year.
All-Transactions FHFA House Price Index for Idaho (Quarterly)
The FHFA HPI is the nation’s only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. In the Idaho housing market, FHFA HPI is 772.40 as of the second quarter of 2022, an increase of 24.7% from last year.
Q2 2022: 420.23
Q1 2022: 393.87
Q4 2021: 382.08
Q3 2021: 373.09
Q2 2021: 354.89
Source: FRED
Here’s Zillow’s forecast for some of the metro areas in Idaho. All the 13 metros in Idaho are expected to have a home price growth between September 2022 to September 2o23. None of them are expected to see a home price decline in 2023. Rising home values and listing prices, combined with limited inventory, indicate that Idaho’s housing market is still tilted toward sellers.
Idaho’s Markets Where Home Prices Are Predicted to Increase in 2023
Boise City, ID home values are forecasted to rise 4.3% between Sept 2022 to Sept 2023.
Coeur d’Alene, ID home values are forecasted to rise 6.9% between Sept 2022 to Sept 2023.
Idaho Falls, ID home values are forecasted to rise 6.4% between Sept 2022 to Sept 2023.
Twin Falls, ID home values are forecasted to rise 6.7% between Sept 2022 to Sept 2023.
Pocatello, ID home values are forecasted to rise 8.1% between Sept 2022 to Sept 2023.
Lewiston, ID home values are forecasted to rise 3% between Sept 2022 to Sept 2023.
Rexburg, ID home values are forecasted to rise 4.7% between Sept 2022 to Sept 2023.
Blackfoot, ID home values are forecasted to rise 6.1% between Sept 2022 to Sept 2023.
Sandpoint, ID home values are forecasted to rise 4.2% between Sept 2022 to Sept 2023.
Burley, ID home values are forecasted to rise 5% between Sept 2022 to Sept 2023.
Moscow, ID home values are forecasted to rise 3.2% between Sept 2022 to Sept 2023.
Mountain Home, ID home values are forecasted to rise 5.7% between Sept 2022 to Sept 2023.
Hailey, ID home values are forecasted to rise 6.6% between Sept 2022 to Sept 2023.
Sources:
https://www.zillow.com/research/data/
https://www.zillow.com/home-values/20/id/
https://www.redfin.com/state/Idaho/housing-market
https://fred.stlouisfed.org/series/IDSTHPI#
The post Idaho Housing Market Forecast 2022 & 2023 appeared first on Norada Real Estate Investments.