2024 Idaho Real Estate Market Predictions

Boise Idaho Real Estate Predictions

The housing market in Boise, Idaho, is undergoing significant shifts, making it crucial for homeowners, buyers, and investors to stay informed about the latest trends. As we delve into the housing market predictions for 2024, it becomes evident that Boise is currently experiencing a sellers' market, driven by various factors.

Idaho Housing Supply and Demand:

To start, the number of homes for sale in Boise has declined by a staggering 30% over the past year, indicating that there is likely a scarcity of available properties. Specifically, home sales in September of 2023 decreased by 10.4% year-over-year, with only about 2,200 homes sold compared to 2,500 the previous year at that time. This is most likely influenced by a two-decade-high mortgage rate of nearly 8%. Boise remains a seller's market.

Idaho Average Home Prices:

According to houzeo.com, the average median home price in Idaho stands at $470,000, and despite the low inventory, experts predict a small increase in the median sale price while moving into 2024. The sale-to-list price ratio is currently at 97.9%, reflecting a 1.4 percentage point increase year-over-year compared to September 2022. 

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Future Predictions for Real Estate in Idaho:

Over the past year, the median days on the market for homes decreased to 36 days, which is down by 4 days. Those sellers who may have stayed on the sidelines in 2023, or pushed back their plans, are expected to return, especially those seeking new job opportunities or a more affordable living situation. When it comes to mortgage rates, Norada Real Estate Investments explains that they hit a high of 7.79% in October 2023, and they are anticipated to stabilize in the second half of 2024. 

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Market Expansion and New Construction:

New home construction sales are expected to increase, with a 12.8% rise in authorized housing units compared to 2022. Idaho's housing market is in high demand, driven by population growth, a low unemployment rate, and a shrinking housing inventory. 

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Stability Amid Growth:

While it may seem that people are moving out of the Gem State, that doesn’t seem to be impacting the housing market as you might assume. The state's growth rate remains the second-highest, estimated at 1.43% annually. And in actuality, a housing market crash in Idaho is unlikely. 

How does Idaho Compare to the Rest of the Country? 

In 2023, the United States witnessed a significant decline in national home sales, reaching the lowest point in nearly 30 years. According to an article posted by the Idaho Statesmen on January 23, 2024, the median home price set a record, hovering just below $390,000. Notably, Ada and Canyon counties saw the most substantial decrease in existing home sales since 2009. Despite a 1.5% dip in sales overall, the western region of the country maintained higher median prices, experiencing an almost 5% increase from December 2022. The percentage of first-time buyers in national sales for December stood at 29%, marking a 31% decrease compared to the preceding months.

 

Navigating the Boise, Idaho housing market in 2024 requires a strategic approach. Sellers can capitalize on the current sellers' market, while buyers may find opportunities as mortgage interest rates stabilize. With new construction on the rise, Idaho's housing market remains dynamic, presenting both challenges and opportunities for those involved in real estate transactions.



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