Are you looking to buy a new home in Idaho? Do you want to find out more about the Idaho housing market? First-time homebuyers should learn about the top trends in the real estate market. Knowing the average home prices and sizes in Boise and other parts of Idaho is critical for anyone trying to buy or sell their house.
You will also need to get a Boise real estate agent and understand realtor fees, which the guide defines below.
What are the average costs to sell a home in Idaho, and what are the general home values in the state? Keep reading to find out the answers to these questions. Now, let’s get started and find out everything about the Idaho housing market.
Idaho Housing Market
Currently, the skyrocketing growth of the Boise housing market and the real estate markets in Florida, New York, Utah, and elsewhere in the United States are cooling down. Boise home prices only rose by 0.4 percent in March 2022 as compared to a 4.1 percent growth in June 2021. Idaho is one of the first housing markets to see falling prices.
Previously, the COVID-19 pandemic created an environment where people could work from home anywhere. That led to significant growth in the real estate sector. However, the rise was never meant to have a long-term timeline, as businesses began bringing professionals back into the office.
A slowdown in home values is happening in Western towns in the US, but large cities like Phoenix, Arizona, Austin, Texas, Tampa, Florida, and New York City are expected to see a slowdown in home costs. However, home values have gone up extraordinarily in Boise with about a decade of home price appreciation squeezed into a few years.
Today, Boise’s home values are approximately 70 percent larger than what city residents can afford based on their income. The prices may start dropping down. However, many buyers are coming from California and paying in cash. As such, the future of the Idaho housing market is not definite.
Nonetheless, there’s a prediction of a small drop in home values, but the decline won’t matter enough to create a buyer’s market in Idaho. For instance, nearly 7,000 Idaho homes got sold in Quarter 4 of 2021, which was a 6.4 percent drop from Quarter 3 of 2020.
Home price growth is expected to decline because much fewer buyers could handle purchasing overly expensive properties. Affordability is essential for home buyers throughout Idaho.
Real Estate in Idaho
Affordable housing is getting harder to come by in Idaho. The average home price in Idaho grew 18.6 percent year-over-year to reach $612,558 on average. The costs also grew by 3.1 percent during the fourth quarter of 2021, according to a housing market analysis.
At such high prices, more home buyers are unlikely to have the purchasing power to handle such elevated mortgage rates. You can already see a slowdown in the skyrocketing number of home sales that occurred during the early part of the COVID-19 pandemic.
For instance, the number of homes sold during the first quarter of 2022 was 24.7 percent lower than during the fourth quarter of 2021. However, housing inventory in Idaho is also down from prior years.
According to Zillow, the average home value in Idaho is $473,847, which is an increase of 21 percent from last year. In fact, over the last nine years, home prices across Idaho jumped by more than $300,000 on average. The Boise metro area continues to see growing sales prices.
Nonetheless, home sellers in Idaho still sell their properties relatively quickly with homes staying a median of 10 days on the market before getting an offer.
Average House Prices in Idaho
The median sales price of Idaho houses is $512,600, which is a 19.4 percent increase year-over-year. The housing inventory supply keeps dropping while demand continues. The number of homes for sale has declined by 21.3 percent year-over-year. The number of homes sold also dropped by 15.3 percent.
Furthermore, 40.6 percent of Idaho homes are currently sold above the listed price. New construction will need to take place for the costs to truly start dropping and greater competition to occur in the real estate market. The Zillow home value index of Idaho properties is around $473,000.
Idaho homeowners are likely to sell their place quickly at a high price. However, the future may bring a decline in home values as fewer buyers could keep up with the skyrocketing costs and the growing interest rates on mortgage loans.
If the prices continue rising, fewer and fewer buyers will show up and more people are likely to become renters instead. Idaho homeowners may need to consider becoming landlords or finding companies that buy houses in Nampa.
In addition, if you are selling your home in Idaho and want to get the best price possible, the best time to put a house on the market is usually in the late spring and summer. Pick May, June, and July when putting your house on the real estate market. September is also a great month for home sales in Boise, Idaho.
Average House Sizes in Idaho
The average home size in Idaho is rather large, with Idaho being one of the top 10 states for the biggest houses. The average house size in Idaho is 1,932 square feet. According to realtor.com, you can find homes in Idaho anywhere from 1,272 square feet and 1,638 square feet to 2,556 square feet or more.
The larger homes available throughout Idaho have to do with the larger incomes of people in the state. Often, the real estate buyers in Idaho have better credit scores than in other regions, which means they can afford larger homes.
Some of the hottest housing markets in Idaho with the fastest-growing sales price include:
- Post-Falls, Idaho
- Star, Idaho
- Lewiston, Idaho
- Twin Falls, Idaho
- Hayden. Idaho
- Coeur d’Alene, Idaho
- Boise, Idaho
- Moscow, Idaho
- Eagle, Idaho
- Middleton, Idaho
Essentially, wealthy families and individuals, such as those who’ve earned plenty in California but want more affordable living standards, can enjoy mansions or large homes in Idaho.
Average Costs to Sell a House in ID
Despite the large profit home sellers can make in Idaho, selling property comes with its costs to consider, such as real estate agent commission fees and taxes. You will need to set aside 5 to 6 percent of the final home sale price for the real estate commission fee.
As such, if you sell your home for $500,000, you can expect to pay your real estate agent at least $25,000 to cover the commission. The buyer’s and seller’s real estate agents split the commission. Then, there are always closing costs. Buyers tend to handle the majority of the closing costs, but sellers do have some responsibility during closing.
This can involve spending $3,000 or more to cover closing. It can also cost anywhere from $6,000 to $8,000 to prepare a home for sale, such as through renovations or improving curb appeal with yard work.
The sellers may need to handle the HOA fees, transfer taxes, title insurance, and property taxes. You may also need to cover the brokerage fee, courier fee, and escrow costs. Lastly, you will need to cover the fees of your real estate attorney.
The house selling process also includes undergoing a home inspection report. If the inspector uncovers some major repairs, the home seller will need to pay for the costs associated with the renovation. Further, don’t forget to pay for the electricity, water, and heating even if you already moved out. You’ll need to cover utility costs until closing day.
Once you are ready to move out, you will need to spend anywhere from $3,000 to $5,000 or more for your relocation expenses.
Realtor Fees in Idaho
Realtors have commission fees for every home sale, which are either 5 or 6 percent of the final home value that the buyer and seller have agreed to. In Idaho, the average real estate commission cost is 5.6 percent, according to a survey of local realtors.
However, you can try to negotiate with real estate agents to get a lower commission fee upon the sale of a house.
If you want to avoid commissions and realtor fees altogether, look for cash buyers on your own. I know I would choose investors and cash buyers to buy my house in Idaho quickly and easily. Real estate investors and cash buying companies can purchase your property in its as-is condition.
Conclusion
The Idaho housing market might have started cooling down. The skyrocketing costs are no longer growing at the same rate. Nonetheless, prices are unlikely to drop significantly.
Cash buyers are popular in the state and you may want to sell without having to cover the costs of real estate agents. Luckily, we buy houses in Boise. You can contact us for a fair offer and a streamlined home selling process.