Purchasing or selling in an unstable real estate market can be lucrative, as long as you know what you're getting into. Doing your due diligence before participating in any real estate transaction is crucial, especially if it involves a lot of money. With that said, learning the current state of the Idaho real estate market conditions could save you from a huge financial loss.
Key Highlights:
- Only 11 out of 44 Idaho counties have a balanced housing inventory, with some counties lacking over 1,500 units, making it a seller's market due to low supply.
- The median home price in Idaho has climbed to $495,300, pricing out many first-time buyers and pushing them to seek more affordable markets elsewhere.
- Idaho's population has grown 8.2%, surpassing two million residents. Most new residents are out-of-state movers, keeping housing demand high despite rising costs.
- Mortgage rates in Idaho are slightly above the national average—7.00% for 30-year fixed, and 6.25% for 15-year fixed, which could impact affordability and buyer activity.
- Idaho ranks second in national job growth, with employment nearing 900,000 in mid-2025. This strengthens buyer confidence and maintains demand, particularly in growing cities.
Factors to Consider
Housing Supply
As of June 2025, only 11 out of 44 counties have a balanced housing inventory, showing a severe problem in Idaho's housing market. The construction of new real estate has not been able to keep up with buyer demand.
According to Sheet Maupin from the Valley County Commission, Bingham, Blaine, Bonner, Jefferson, and Valley Counties are short 1,500 housing units. If you are a homeowner looking to sell, now is a good time to do so.
Home Prices
Given the housing market's limited supply, the median home price has increased. The National Association of Realtors reports that the national median sale price for existing homes "rose at a monthly record pace of 1.8% year-over-year in April."
The median home price in most counties has risen dramatically in recent years compared to the average home price. Currently, the median sale price in Idaho's housing market is at $495,300. With these housing prices, first-time homebuyers are starting to look for property listings elsewhere.
Housing Demand
Idaho's housing market forecast shows steady demand for housing brought on by population growth. Despite the increased numbers in median house prices, Idaho's population reached over two million in December 2024, which is an 8.2% growth.
The new residents are mostly from other states. Optimistically, this shows steady demand in Idaho's housing market. Unfortunately, this does not help lower Idaho home prices, making it a seller's market.
Mortgage Rates
Mortgage interest rates are slightly higher in Idaho at 7.00% for a 30-year fixed mortgage and 6.25% for a 15-year fixed mortgage. By comparison, the national average is at 6.88% for a 30-year fixed mortgage and 6.08% for a 15-year fixed mortgage.
While the interest rate hovers between 6% and 7%, it will ultimately depend on economic factors. Even some seemingly unrelated economic changes, such as the implemented tariffs, can eventually impact the Idaho real estate market.
Job Market
With an annual projected employment growth rate of 1.2%, Idaho's housing market is expected to see more real estate demand among buyers. The state is ranked 2nd in the year-over-year job growth rate.
In the previous year in December, the total employment was 859,060. This year, by June, total employment has almost reached 900,000. With the continued growth, especially in top cities. This serves as good news for homeowners who want to sell, but not homebuyers who are waiting for a price drop in the housing market.
Conclusion
The real estate market currently favors sellers, and there are no signs of a price drop anytime soon. While Idaho falls on the list of good places to live, the affordability remains an issue based on the market overview.
For it to be a buyer's market, new real estate buildings must enter the market to combat low housing inventory. While these insights don't look appealing to buyers, it's better to consult a real estate professional to learn about the best course of action.
Idaho Housing Market FAQs
Has Idaho sold more real estate this year?
- Yes. In January 2025, 1,553 homes were sold, compared to 1,461 homes sold during the same period last year. Based on the sales activity, sellers continue to thrive in the state.
Why are houses in Idaho expensive?
- With the lack of supply in most cities and counties, coupled with high demand, list prices in Idaho will remain high in the foreseeable future. Single-family homes, especially, are the most expensive property type on the market. Check your financing options first before making a purchase.
What is the average list price in Idaho?
- According to the Federal Reserve Bank of St. Louis, the average list price in Idaho is $595,900 as of May 2025, which is high compared to the median list price in the US, which is $441,738.
Which cities in Idaho have more homes for sale?
- Cities like Boise have several listings in the market and have new homes in development. It's best to watch out for locations with housing and communities in development since the prices may be more budget-friendly than others.
Is now the best time to sell homes in Idaho?
- Yes, since the market trends favor sellers. It is worth noting that, on average, listings sell after 74 days on the market, which is slower than last year, when sales typically occurred after 65 days on the market. If you're unsure, it's best to consult a real estate professional.
Wave Property Management As Your Guide
With many people seeking housing, being a homeowner offers numerous profitable opportunities. You can sell your property for immediate funds, or you can go for long-term income by turning it into a rental business.
Don't worry if you're a first-time landlord. That's precisely what are services are here for! With expert property management, your rental property will thrive, and you will earn passive income in no time at all.
You can schedule a phone consultation to determine the potential of your property, or contact us to learn more about what our property management services can do for you.
