Do national housing market trends signal possible Idaho slowdown?

As a long-time Magic Valley realtor and resident, Haney says she is hoping for a correction
(KMVT)
Published: May. 23, 2022 at 5:28 PM MDT
Email This Link
Share on Pinterest
Share on LinkedIn

Idaho (KMVT/KSVT) — National real estate experts are seeing the first signs of a slowdown in the housing market, but that doesn’t quite mean it’s a buyer’s market just yet.

“Nearly 25% of homes still sold immediately,” said Mark Johnson with JPAR Real Estate. “That’s down from 33%, so my analogy is we were traveling about 125 miles per hour, now we’re just going 100 miles per hour.”

With the market slowing down from a record pace, Johnson says he is not pointing to a change in demand, especially in places like Idaho, where population growth has yet to return to pre-pandemic levels.

Instead, he is pointing to one national trend that may be causing the slowed market.

“We’re increasing inventory by 4-6% every week, and I anticipate that will happen through the end of summer,” said Johnson.

Johnson says a leveling off, or dip, in the housing market, will be sustainable with a more saturated market, with more houses available for sale.

In southern Idaho, everything is sold or reserved before construction is even finished. So what would have to happen here in the Magic Valley to see something like that occur?

“New construction,” said Lisa Haney with 208 Real Estate. “I think they are finally starting to catch up. I know builders would quit taking orders for new build jobs because they couldn’t keep up. I think we’re finally starting to see a little more saturation in both of those markets.”

Haney tells me she has not seen the types of inventory increases Johnson is referencing, but I asked if she believes the market will slow down in the foreseeable future.

“I think it will, but I think it’s a good correction,” Haney said.

As a long-time Magic Valley realtor and resident, Haney says she is hoping for a correction, saying she believes the area’s locals deserve it.

“I think the worst thing about the last year and a half is a lot of people who work here have lived up here and grown up here their whole life have been priced out of the market,” she said.

Copyright 2022 KMVT/KSVT. All rights reserved.