Idaho Falls Housing Market Trends and Forecast for 2024

The Idaho Falls housing market has been one of the hottest in the country in recent years, with home prices rising rapidly. However, the market has been slowing down since last year, due to several factors, including rising interest rates, a potential recession, and a decline in demand.

Risk Factors for a Market Decline

• Rising Interest Rates are already impacting the Idaho Falls housing market, with mortgage rates doubling since the beginning of the year. This surge has made it challenging for potential buyers to afford homes, resulting in a recent decline in home sales and a softening of prices.
• A Recession could further contribute to a decline in home prices. Economic slowdowns and job losses may lead to reduced demand for housing, creating a surplus of homes on the market and causing prices to fall.
• A Decline in Demand is another potential risk. If Idaho Falls becomes less desirable or people move to other areas, the demand for housing may decrease, impacting home prices negatively.

Supporting Factors for Market Stability

• Strong Population Growth: Idaho Falls is experiencing steady population growth, a trend expected to continue in 2023. This growth can bolster housing demand, preventing significant price declines.
• Limited Supply of Housing: The restricted housing supply in Idaho Falls can act as a stabilizing factor, supporting home prices despite potential market challenges.
• Economic Fundamentals: The relatively strong economy in Idaho Falls is poised to support home prices, providing a foundation for market stability.

While it is deemed unlikely that the Idaho Falls housing market will experience a crash in 2024, potential buyers need to be aware of influencing factors. Buyers should be prepared to negotiate on prices, considering the impact of rising interest rates, the possibility of a recession, or a decline in demand on the housing market in Idaho Falls.

Current Idaho Falls, ID Housing Market Trends in 2024

How is the Housing Market Doing Currently?

Idaho Falls, a city nestled in the gem state, presents an intriguing landscape in its housing market. As of January 2024, there has been a noteworthy shift in home prices, indicating a 14.4% decrease compared to the previous year. The median home price in Idaho Falls now stands at $299K. This downturn may catch the attention of both potential buyers and investors seeking affordability in the real estate market.

On the time-to-market front, homes in Idaho Falls are spending an average of 59 days on the market, mirroring the statistics from the previous year. This suggests a stability in the pace of property transactions, providing a reliable metric for those involved in real estate dealings.

The number of homes sold in January witnessed a decline, with 42 homes changing hands, down from 50 homes during the same period in the preceding year. This statistical dip could be indicative of various market dynamics, prompting a closer look into the factors influencing the buying and selling trends.

How Competitive is the Idaho Falls Housing Market?

One crucial aspect that prospective buyers and investors consider is the competitiveness of the market. In Idaho Falls, the median sale price is 42% lower than the national average. This significant difference positions Idaho Falls as an attractive destination for those seeking cost-effective real estate opportunities.

The lower median sale price not only signifies affordability but also suggests a less fiercely competitive market compared to the national scenario. For investors and buyers looking for a strategic entry point, Idaho Falls may provide a favorable landscape.

Are There Enough Homes for Sale in Idaho Falls to Meet Buyer Demand?

The balance between supply and demand is a pivotal factor in any housing market. In Idaho Falls, the statistics indicate a potential challenge. With a decrease in the number of homes sold, from 50 to 42, it raises questions about the availability of homes to meet the demand from prospective buyers.

This aspect requires a deeper exploration of factors influencing inventory levels and the overall dynamics of the local real estate landscape. Addressing this question is crucial for both buyers and sellers, as it directly impacts their negotiating power and market strategy.

Idaho Falls Housing Market Forecast for 2024 and 2025

Idaho Falls, a city with a unique blend of urban amenities and scenic landscapes, has been witnessing interesting trends in its housing market. According to Zillow, a prominent real estate data source, the average home value in Idaho Falls currently stands at $359,816, reflecting a modest decline of 0.5% over the past year. Homes in this market typically go pending in approximately 46 days, indicating a dynamic real estate landscape.

Key Housing Metrics

• 295 For Sale Inventory (January 31, 2024): As of the mentioned date, the market boasts a diverse inventory of 295 homes available for sale, offering potential buyers a variety of options.
• 64 New Listings (January 31, 2024): The recent surge in 64 new listings contributes to the city’s vibrant real estate scene, presenting opportunities for both buyers and sellers.
• 0.988 Median Sale to List Ratio (December 31, 2023): Reflecting a robust market, the median sale to list ratio of 0.988 showcases a favorable environment for sellers.
• $335,844 Median Sale Price (December 31, 2023): The median sale price of $335,844 underlines the city’s affordability, attracting potential homeowners.
• $385,967 Median List Price (January 31, 2024): With a median list price of $385,967, the market strikes a balance between affordability and value for sellers.
• 21.4% Percent of Sales Over List Price (December 31, 2023): A notable 21.4% of sales exceeding the list price indicates a competitive market with high demand.
• 59.1% Percent of Sales Under List Price (December 31, 2023): Conversely, 59.1% of sales below the list price suggests opportunities for savvy buyers.

Idaho Falls MSA Housing Market Forecast

In the broader context of the Idaho Falls Metropolitan Statistical Area (MSA), the housing market is poised for interesting developments. According to forecasts, as of January 31, 2024, the region is expected to experience a marginal decline of -0.1%. However, looking ahead to April 30, 2024, there is a projected increase of 0.4%. The forecast becomes more optimistic for January 31, 2025, with an anticipated growth of 5.9%.

These projections provide valuable insights for potential investors, homeowners, and industry professionals navigating the Idaho Falls MSA real estate landscape. The term Metropolitan Statistical Area (MSA) refers to a geographical region characterized by a high degree of social and economic integration with a central city. In the case of Idaho Falls, this MSA encompasses not only the city itself but also the surrounding counties that contribute to its economic and demographic profile.

The size of the housing market in this MSA is substantial, given the diverse range of residential properties available and the continuous influx of new listings. The counties within the MSA play a crucial role in shaping the overall real estate landscape, providing potential homeowners with various options in terms of location, amenities, and property types.

Is Idaho Falls a Buyer’s or Seller’s Housing Market?

In assessing the dynamics of the Idaho Falls housing market, the question arises: Is it currently a buyer’s or seller’s market? The metrics paint a nuanced picture. With an average home value of $359,816 and a median sale price of $335,844, the market exhibits affordability. However, the 21.4% of sales over the list price suggests a competitive atmosphere favoring sellers. Prospective buyers should navigate this landscape with strategic planning, considering factors such as inventory, pricing trends, and their own preferences to determine whether it aligns with their goals.

Are Home Prices Dropping in Idaho Falls?

The Idaho Falls housing market has experienced a modest 0.5% decrease in the average home value over the past year. However, it’s essential to view this decline in the broader context of the market’s stability and overall trends. Factors such as new listings, median sale prices, and the median sale to list ratio contribute to the market’s resilience. While there is a slight dip, the overall trajectory suggests a dynamic equilibrium rather than a substantial drop in home prices.

Will the Idaho Falls Housing Market Crash?

Concerns about a housing market crash often arise amid economic uncertainties. However, the Idaho Falls market shows resilience with a 0.988 median sale to list ratio, indicating a robust environment. The modest decline of 0.5% in the average home value should be considered in the context of the market’s overall stability. It’s crucial to monitor economic indicators, interest rates, and local factors that may impact the real estate landscape, but as of now, the market appears steady rather than indicative of an imminent crash.

Is Now a Good Time to Buy a House in Idaho Falls?

For potential homebuyers contemplating the Idaho Falls market, the question of whether now is a good time to buy a house requires careful consideration. The 59.1% of sales under the list price and the relatively stable median sale price of $335,844 provide opportunities for savvy buyers. However, individual circumstances, financial considerations, and personal preferences play a crucial role. Engaging with a knowledgeable real estate professional and staying attuned to market trends can guide prospective buyers in making informed decisions tailored to their specific needs.

Investing in the Idaho Falls Real Estate Market: A Comprehensive Analysis

1. Population Growth and Trends

Idaho Falls is experiencing steady population growth, a crucial factor for real estate investors. The city’s appeal is driving an influx of residents, contributing to increased demand for housing. This trend indicates a potentially lucrative market for investors looking for long-term appreciation and consistent rental demand.

2. Economy and Jobs

• Stability: Idaho Falls boasts a relatively strong economy, providing a stable foundation for real estate investments. Economic stability is essential for property value appreciation and ensures a resilient market even during economic fluctuations.
• Job Market: The presence of a thriving job market further enhances the attractiveness of the real estate market. Job opportunities attract new residents, driving demand for both rental and owned properties.

3. Livability and Other Factors

Investors should consider the overall livability of Idaho Falls, including factors such as quality of schools, healthcare, and community amenities. A city with a high livability index tends to attract more residents, positively influencing the real estate market. Additionally, factors like safety, recreational opportunities, and cultural amenities can contribute to sustained demand for housing.

4. Rental Property Market Size and Growth

• Current Size: Assess the size of the rental property market in Idaho Falls. A substantial market size indicates opportunities for investors to tap into a diverse pool of tenants.
• Growth Trends: Analyze growth trends in the rental property market. A market that is expanding suggests increased rental demand, providing potential for rental income growth and property appreciation.

5. Other Factors Related to Real Estate Investing

Consider additional factors that can impact real estate investing:

• Market Trends: Stay informed about current market trends in Idaho Falls. Understanding shifts in buyer and tenant preferences can guide investment decisions.
• Regulatory Environment: Be aware of local regulations and policies affecting real estate. Changes in zoning laws or property taxes can influence the profitability of investments.
• Infrastructure Development: Assess planned infrastructure developments in the city. Proximity to transportation hubs, schools, and commercial centers can enhance property values.

Thus, investing in the Idaho Falls real estate market presents an array of opportunities for savvy investors. The combination of population growth, economic stability, livability factors, a thriving rental market, and consideration of various real estate-related factors positions Idaho Falls as a promising destination for those seeking long-term returns on their real estate investments.

References:

• https://www.zillow.com/home-values/39097/idaho-falls-id/
• https://www.realtor.com/realestateandhomes-search/Idaho-Falls_ID/overview