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 is starting to cool down in 2023, due to a number of 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 2023, it is essential for potential buyers 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.
Idaho Falls, ID Housing Market Overview Report October 2023
Idaho Falls, ID is not just a picturesque destination; it’s also a dynamic real estate market. Let’s dive into the latest trends for the Idaho Falls housing market in 2023, sourced from realtor.com®.
Median Listing Home Price
As of October 2023, the median listing home price in Idaho Falls stands at $395,000. This figure represents a notable -9.2% year-over-year decline, reflecting the current dynamics in the housing market. It’s evident that the market has experienced fluctuations, with the most recent data signaling a downward trajectory.
Sale-to-List Price Ratio: 100%
One noteworthy aspect of the Idaho Falls housing market in October 2023 is the sale-to-list price ratio, standing at a remarkable 100%. This indicates that, on average, homes in Idaho Falls are selling for approximately the asking price, portraying a balanced relationship between buyers and sellers.
The market is neither heavily favoring buyers nor sellers, providing a unique landscape for those navigating the real estate journey in Idaho Falls.
Buyer’s Market Dynamics
As of October 2023, Idaho Falls, ID is classified as a buyer’s market. This designation implies that the supply of homes exceeds the current demand, offering prospective buyers a range of options to explore.
This buyer-oriented market can influence various aspects, including negotiating power and potential incentives for those looking to make a purchase in the region.
Median Days on Market: 41 Days
Timing is crucial in the real estate market, and in Idaho Falls, homes are spending an average of 41 days on the market. The accompanying chart illustrates the trend in median days on the market over the past three years, highlighting a decline in this duration since the previous month and a slight decrease compared to the previous year.
These figures suggest that properties are moving relatively quickly in the current market conditions, reflecting a dynamic environment that potential buyers and sellers should take into consideration.
Idaho Falls Housing Market Forecast 2023 & 2024
The latest data from Zillow provides insights into the current state of the Idaho Falls housing market. As of September 30, 2023, the average home value in Idaho Falls stands at $366,912, reflecting a 6.7% decrease over the past year. Additionally, homes in Idaho Falls typically go pending in around 24 days, highlighting a dynamic and active real estate landscape in the region.
Idaho Falls MSA Housing Market Forecast
Zillow’s housing market forecast for the Idaho Falls Metropolitan Statistical Area (MSA) provides valuable insights into the expected trajectory of the real estate market. The MSA forecast for the specified time periods is as follows:
- Base Date (30-09-2023): The MSA forecast starts with a baseline value.
- 31-10-2023: Anticipates a growth of 0.3% in the housing market.
- 31-12-2023: Projects a further increase of 0.2% in home values.
- 30-09-2024: Forecasts a significant growth of 4.1%, indicating a potential upswing in the housing market.
Metropolitan Statistical Area (MSA): An MSA is a geographical region with a relatively high population density and economic ties throughout the area. In the context of the Idaho Falls housing market, the MSA serves as a comprehensive unit for analyzing real estate trends.
Size of the Housing Market: The housing market in Idaho Falls, encompassing the MSA, is characterized by its dynamic nature, evident in the average home value and the pace at which properties go pending. These factors contribute to the overall size and vibrancy of the housing market.
Counties Encompassed by Idaho Falls MSA: The Idaho Falls MSA includes counties within its geographical scope, forming a cohesive economic and social unit. The specific counties within this MSA contribute to the diversity and dynamics of the housing market, influencing trends and forecasts for the broader region.
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.