Despite taking a beating during the Great Recession, the housing market is a key part of Idaho’s economic recovery and ongoing vitality. While January’s housing data for the state showed home prices decreasing 0.4 percent from December, prices are still up 11.1 percent from the same time last year. Though growth in home prices has stalled in the short term, it appears Idaho is still on trajectory for recovery. The national market is also showing signs of solid growth, with a one-month increase of 0.9 percent and a one-year increase of 12.0 percent. A growing housing market is good news for virtually everyone, as it contributes significantly to the overall health of the economy.
While housing prices continue to rise across the country, national prices are not expected to reach their pre-recession high until 2018 according to a new study by the Demand Institute. Although 2013 was a particularly strong year in the real estate market—with prices rising 11.5 percent nationally—the study predicts that prices will rise by a much more modest average annual rate of 2.1 percent between 2015 and 2018. This lower rate does not reflect recessionary movement; rather, it is the natural consequence of an economy that is in transition from recovery to stability.
Another study by the Demand Institute predicts uneven growth across the United States, with Idaho’s prices expected to increase by 25 percent between 2012 and 2018. That rate is the twelfth highest of all the states in the nation, signifying that Idaho will continue its path toward a stable, sustainable housing recovery.
Zion’s Bank
Best regards,
Jeff Stewart
Broker/Owner, Stewart Realty, LLC, Direct: 208-602-1993, Toll Free: 866-787-5445
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