Did you know that the median price of a home in Idaho is almost $400,000?
Like many areas of the country, real estate prices in Idaho are increasing, and you may be wondering if they are ever going to drop. Read on to learn more about Idaho real estate and what to expect in the future.
What Direction Are Real Estate Prices Heading In Idaho?
Real estate price trends are expected to continue to increase into 2022. Idaho home prices will outpace the forecasted increase for the rest of the nation, with multiple housing markets projected to increase by 12 percent or more.
What Is Driving Up the Cost of Idaho Real Estate?
The biggest driver has been the pandemic and how it has changed work. The growth of remote work has removed the need for people to live near their workplace. As a result, home seekers are coming to Idaho from places like California, where the average home price is still more. Many of these individuals relocating are high-earning professionals who are bidding against one another and inflating the prices.
Besides more affordable housing, Idaho has lower taxes than other nearby west coast states. For example, the Idaho income tax maxes out at 6.5 percent, whereas California and Oregon have rates at or more than 10 percent. The taxes on sales, businesses, and retirement are also competitive.
Idaho also presents itself as a great year-round location for those who love the outdoors, with mountain ranges, rivers, and forests. Fishing, hunting, hiking, and skiing are all popular activities.
Aside from the benefits Idaho offers, demands being placed on the construction industry are driving up prices. The prices of construction materials have soared, with items like shingles and lumber in short supply. As a state with a smaller population, Idaho also has limited manpower for building homes.
Will Real Estate Prices Drop?
Even with prices expected to increase in the short term, there are some signs that the market will slow, perhaps even crash. With the pandemic showing signs of slowing down, the influx from California is decreasing and native Idahoans can’t afford the expensive houses.
Some markets, such as Boise, have had a vast majority of the listing make a price cut. Sellers should still be in a good position for the next year.
What Should Prospective Buyers and Sellers Consider?
Given the unpredictability of the current housing market, both prospective buyers and sellers should consider an experienced agent. A company that has serviced the Idaho market for years, such as Legacy Real Estate, can work to get you the best possible deal.
Navigating the Idaho Real Estate Market
Now that you know about Idaho real estate prices and how they project for the near future, you can make a better-informed decision. Many of the factors affecting the market could be changing soon, and this can impact you regardless of whether you are buying or selling.
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