Published June 14, 2023
Idaho Falls May 2023 Housing Market Update
May 2023 Housing Market Update for Idaho Falls, Idaho
The Idaho Falls housing market, much like many others across the country, is going through some intriguing shifts. It's not just about the number of "For Sale" signs popping up on lawns, but the broader economic indicators that provide a comprehensive picture of where the market stands and, potentially, where it's headed.
Comparing the statistics from May 2023 to those of May 2022, it becomes evident that we're witnessing some significant changes in the Idaho Falls real estate landscape.
Decrease in Home Sales
Firstly, home sales have declined by 19.3% in May 2023 compared to the same period in 2022. While this decrease may initially seem alarming, it's essential to put it into context. A drop in sales doesn't necessarily indicate a faltering market. Instead, it could be a result of reduced inventory, which brings us to our next point.
Drop in New Listings
New listings in May 2023 have dipped by 29% compared to May 2022. A shortage of new properties coming onto the market can be a contributing factor to the decline in home sales.
Interestingly, prices have fallen by 5.2% during the same period. This decrease suggests that despite fewer properties entering the market, buyers aren't facing the price hikes we've grown accustomed to seeing in low inventory situations.
Longer Days on Market
Now, let's turn to the average time a home spends on the market, often known as "days on market" (DOM). This metric has increased by 18 days year over year, reaching a total of 66 days in May 2023. This indicates that homes are taking longer to sell, potentially due to a variety of factors, including rising interest rates or buyer reluctance amidst economic uncertainty.
Increase in Interest Rates
Indeed, interest rates have risen by 1.2% year over year. While seemingly a small increase, it can significantly impact a buyer's purchasing power and willingness to enter the market.
Lastly, the absorption rate, or the rate at which the market can absorb or sell all the existing houses based on the current rate of sales, has risen by 0.5 months to a total of 2.3 months of supply. This increase suggests that demand might not be keeping up with supply, hence the slower sales and slightly decreased prices.
Overall, these trends indicate a market that is cooling down. The lower sales, reduced listing entries, decreased prices, increased days on market, and slightly higher absorption rates all point to a more balanced housing market, perhaps even leaning toward being a buyer's market.
Whether you're a prospective buyer, a seller, or simply someone keeping a close eye on the Idaho Falls housing market, these shifts offer valuable insights. They illustrate the evolving dynamics of real estate in Idaho Falls, where the pendulum swings between sellers and buyers, influenced by a host of local and national economic factors.
Are you buying or selling a home?
When are you planning on buying a new home?
Are you pre-approved for a mortgage?
Would you like to schedule a consultation now?
When are you planning on selling your home?
or another way