The Idaho housing market in January 2025 presents a complex landscape with a mix of growth and contraction across various metrics. The Median Sales Price for homes in Idaho has reached $480,500, marking a modest increase of 1.8% year-over-year (YoY). This upward trend is mirrored in the Median List Price, which stands at $508,600, reflecting a 1.6% YoY rise. These figures suggest a steady appreciation in home values, albeit at a slower pace compared to previous years.

In terms of Price Per Square Foot, the market has experienced more significant growth. The median Price Per Square Foot has increased by 5.5% YoY to $256, while the Median List Price per square foot has risen by 6.3% YoY to $280. This indicates a robust demand for space, potentially driven by buyers seeking larger homes or more premium properties.

Sales activity in Idaho has shown positive momentum, with 1,553 Homes Sold, representing a 4.3% increase YoY. Pending Sales have also seen a slight uptick, rising by 1.7% YoY to 2,067. This suggests a healthy level of buyer interest and market activity as we enter the new year. However, the Inventory of Homes Available has decreased by 9.2% YoY to 5,263, which could indicate a tightening market and increased competition among buyers.

The Months of Supply, a critical indicator of market balance, has dramatically decreased by 50.0% YoY to 3.4 months. This sharp decline suggests a shift towards a seller's market, where demand outpaces supply, potentially leading to further price increases if the trend continues.

New Listings have surged by 20.1% YoY to 1,986, indicating that more homeowners are looking to capitalize on the current market conditions. Despite this influx of New Listings, the Median Days on Market has increased by 10.0% YoY to 74 days, suggesting that while more homes are entering the market, they are taking longer to sell.

The average sale to list ratio remains stable at 98.1%, unchanged from the previous year, indicating that homes are generally selling close to their asking prices. However, the percentage of Homes Sold above list price has slightly decreased by 0.1% YoY to 10.6%, suggesting a slight cooling in competitive bidding situations.

Price Drops have increased by 5.9% YoY to 24.7%, which may reflect sellers adjusting expectations in response to changing market dynamics. Additionally, the percentage of homes going off the market within two weeks has slightly decreased by 0.6% YoY to 22.4%, indicating a slight slowdown in the speed of transactions.

Overall, the Idaho housing market in January 2025 is characterized by rising prices and increased sales activity, set against a backdrop of declining inventory and a shift towards a seller's market. While New Listings are on the rise, the extended time on the market and increased Price Drops suggest that buyers are becoming more discerning, potentially leading to a more balanced market in the coming months.