IDAHO FALLS, Idaho (KIFI) — According to real estate company Redfin, there are nearly 500,000 more sellers than buyers in the United States. With supply rising above demand, there are questions about the prices of houses being too high (due to volatile interest rates), recent spikes of demand over supply that are finally balancing out, and other causes of economic instability.
In Idaho, according to Redfin, 14.4% of home in Idaho sold above their listed price. That’s down 2.2 points year over year. There were 30.8% of homes that had price drops from their listed price, which is up from 29% in April last year. This indicates at least a small movement in the direction the rest of the nation is leaning.
As it stands, the average sales price for a house in Idaho is $470,000. In the area that spans from Blackfoot to Rexburg, that number looks a bit closer to $440,000.
“Right now, nationwide, prices are high, interest rates are high, so that’s a bad combination for buyers,” says Carissa Coats, spokesperson for the Greater Idaho Falls Association of Realtors. However, not everyone agrees with Coats’ sentiment.
“Time is not on your side right now. Sell earlier rather than later, and it’s really important to price your home correctly for the current market and not use comps that are outdated because you don’t want your home to sit,” says Chen Zhao, Redfin’s Head of Economics Research.
With more people moving in than moving out, Coats believes Idaho is a bit ahead of the curve with demand also increasing compared to other locations. But volatile interest rates that can rise at any moment are an increasing concern for many realtors. When interest rates rise, the loans taken out when purchasing a house can become unaffordable when it was previously within budget.
It’s a waiting game. If sellers get desperate to sell, they’ll lower prices to get buyers. If buyers get desperate to purchase a home, they’ll pay for one at a higher price. If a seller lowers their prices, all other sellers lower theirs, but when bought from, the pressure to lower the prices is lessened. With interest rates causing problems, forcing people to break contracts on homes they can no longer afford, realtors have a tricky road to navigate.
“Those open houses, you’re going to see a lot more of those. Not just on weekends, we’re going to see them on weeknights. You’re going to see a lot more on social media postings. You’re going to see a lot more fliers in your mailbox. You may even see more realtors knocking door to door, just to get the word out for their sellers, because word of mouth is better than any advertising. But its been a while since realtors have had to do those kinds of things,” says Coats.
