Whether you are looking to buy, sell, or invest in Idaho real estate this year, it will be extremely valuable for you to be cognizant of the state’s projected housing market trends for 2019. It’s important to keep tabs on factors like housing prices and mortgage rate trends before making a decision to buy or sell; you could end up getting a great deal if you stay in tune with Idaho’s anticipated market trends for 2019.
2019 Real Estate Market Forecast for Idaho
Let’s start things off with the facts: The median home value in Idaho is $260,800, which has gone up 17.2% over the past year. Within the next year, Zillow predicts they will rise an additional 9.8%. The median price of homes currently listed in Idaho is $306,990. But will that number be going up this year? Let’s find out.
The forecast for the trend in the Idaho Falls housing market for the 12 months ending with the 3rd Quarter of 2019 is up and looking good. It is also estimated that the probability for rising house prices in Idaho Falls is 81% during this period. Good news for Idaho sellers.
Over the past few years, Idaho Falls has experienced population growth and employment reaching high levels. Idaho Falls real estate market will continue on an upward trajectory throughout 2019. Despite challenges like housing, Idaho is such a beautiful place that people want to come to and live in.
If we’re talking about Idaho, we can’t leave out the state capitol; Boise is headed towards a more steady real estate market in 2019. Over the last 12 months, we saw home prices jump nearly 20%, with most neighborhoods showing flat or declining inventory in the Boise area.
Combining the effect of higher home prices and higher mortgage rates, Boise metro home affordability was pushed to a ten year low in 2018. More expensive real estate means fewer qualified buyers; which ultimately leads to lower demand.
The Bad News
Maybe not the best of news: the Boise housing market is about to get a little more difficult for both buyers and sellers. And we haven’t seen a real estate market trend like this in quite some time.
Over the past four years, we have seen demand far overcome supply. There has been more and more demand for fewer and fewer homes. Even a slight reduction in demand could lead to a 30% to 50% increase in Boise housing inventory in 2019. While homes may take longer to sell, most of the increase in supply will be at the highest price points, offering little relief to first-time home buyers.
Home prices and financing costs will continue to rise, but at a much slower pace. Several market predictions put Boise mortgage rates somewhere between 5.5 and 6 percent by the end of 2019. No matter what happens to mortgage rates and home prices, there are few scenarios that will result in more affordable housing over the next 12 months.
In 2019, we will trend towards a more balanced market due to higher housing costs with no meaningful increase in supply. There's no sign of a buyer's market in the near future; especially if we don’t see a significant shift in the economy
Idaho will still be in a seller's market this year. We will still see plenty of demand from buyers, but higher prices and lower affordability will make it even tougher for first-time buyers. People will continue moving to the Boise area; there will just be a little less demand at the highest price points.
When Is the Best Time to Sell a House in Idaho in 2019?
If you’re gearing up to sell your Idaho home this year, taking seasonal factors into consideration will aid you in landing a great deal for the sale.
Winter is notoriously known as the worst time to sell a home almost anywhere in the country; this rings especially true in Idaho. Due to its cold and wet winter weather, buyers find it undesirable to trudge from one house to another through the snow, ice and slush when house hunting. And, as a seller, you certainly won't enjoy cleaning up everything potential buyers track into your house.
For the most part, a majority of buyers don't have the time to look at houses until after Thanksgiving, Christmas, and New Year's are over. Money is also pretty tight towards the end of the year, as potential buyers recover from the holiday season. This impacts their decision to enter the real estate market and start searching for their next home.
March and April are when a slew of houses get put on the market, so there are more options for buyers during these months. Purposely waiting for a later listing date when there aren't as many Idaho homes for sale could make selling your property much easier with higher seller to buyer ratios.
October is known as the optimal time to sell a house in Idaho. As a result of there being fewer homes on the market in the fall, it’s likely you will get your full asking price on your property. At the very least, you will not have to discount the price by much since buyers will be competing over the smaller inventory of Idaho homes for sale.
Another perk for listing in fall is you will have had all summer to get your house ready to showcase your property, and the dreamy fall foliage will make your house even more appealing to prospective buyers.
When Is the Best Time to Buy a House in Idaho in 2019?
Idaho is known for having all four seasons; a major draw-in for out of state home buyers. Each season however, brings specific aspects that contribute to Idaho’s housing market trends.
The housing market typically experiences a big jump in March. During this time, many families want to be settled into their new home before the summer hits. Buyers beware; sellers can price their homes a bit higher as it is more in demand.
In Idaho, summer is home to hot, sunny weather, active lives, and vacations. There’s a bit of a time crunch for buyers on the hunt this time of year if you’re aiming to move in before the school year starts up. Demand is high in the summer months, which means you can expect hiked up prices.
If you’re not all too concerned about changing schools during the school year (or simply don’t have young children that would feel this impact), fall can be a great time to save money on the purchase of your Idaho home.
Generally speaking, once kids have started school, most family buyers are either settled, or have decided to wait until the end of the year. That means fewer buyers are on the market as the weather cools and they adjust to school schedules. You may want to watch the housing market in the less popular fall season for some potentially great deals.
Winter is usually a difficult time to sell houses; people don’t want to move in the winter due to Idaho’s cold, wet weather and the holidays. Sellers could easily be stuck listing their homes for thousands less than you would in the spring or summer. With that being said, savvy buyers can use this window of opportunity for amazing savings.
Whether you’re buying or selling (or both), the first step is partnering with an experienced, local real estate agent for guidance and support throughout the process.
A lot goes into buying and selling a home to ensure a great deal: you have to time the market, find competitive pricing, and negotiate for a great price. But there’s no reason for you to do it alone; finding a great agent gives you the best possible chance of walking away with an optimal outcome.
Clever can help. Fill out the online form to be connected with one of our full-service, local Partner Agents for a no-obligation consultation. We’ll be happy to answer all of your questions.