If you are moving to Idaho, you are not alone. More people are moving to The Gem State than from it these days. In 2021 alone, the statewide population increased by 3.4% from the previous year. Idaho Falls is one of the best places to call your new home. It is a mid-sized city situated on the banks of the picturesque Snake River. Great for families, Idaho Falls is home to history and art museums, zoos, and more. The current Idaho Falls real estate market is another reason to add this city to the top of your list. Inventories of residential homes are on the rise. Meanwhile, home prices are dropping. Keep reading for more reasons why you should purchase East Idaho real estate right now.

Single-Family Home Prices Are Dropping

In 2022, a report found that Idaho Falls was one of the most overvalued housing markets in Idaho and the country. Home prices were up 36.4% year-over-year. Now, this trend looks like it's about to reverse. The average sale price for single-family homes in Idaho Falls right now is around $479,900 or $158 per square foot. That is significantly lower than the average single-family home sale price this time last year ($181/square foot).

Housing Demand Is on the Decline

One of the reasons for the steep rise in home prices over the last few years is the influx of new Idaho residents. Newcomers created a ton of demand on the market. In 2023, population growth has started to stagnate. Less demand may drive prices in the Idaho real estate market even lower in the coming months. Over the past week, the average single-family home stayed on the market for a whopping 99 days.

Market Supply Is Increasing

Are you worried about options if you move to Idaho Falls? Don't be because the supply of single-family and multifamily homes in the market is on the rise. The Idaho Falls City Council plans to add 3,500 new housing units before 2032. The mixed-use community, Snake River Landing, is another new development. It will add dozens of single-family homes and hundreds of multifamily units to the market in the coming years.

Home Value Gains in the Long Term

Idaho Falls is not the best location for a short-term investment. Prices are still correcting. And there is no guarantee your new home will be worth more next year than it is right now. At the same time, experts expect long-term home values to see steady growth. Now is a better time than ever to settle in Idaho Falls. When you're ready to move, you can all but guarantee you'll profit from the sale of your home.

Need Help Navigating the Idaho Falls Real Estate Market?

The Idaho Falls real estate market is growing. We'd love to welcome out-of-state migrants like you to our wonderful community. Are you planning to buy real estate in Idaho Falls? Re/Max Prestige is here for you. Browse our Idaho Falls properties and work with one of our local agents to get the home of your dreams.