How rising interest rates are affecting Idaho’s home prices

Idaho is experiencing significant corrections in home prices as a result of the increasing impact of rising mortgage interest rates.

Zillow‘s housing economists have revised their estimates for 2024, forecasting a 6.5% surge in U.S. home prices from July 2023 to July 2024, up from last month’s 6.3% prediction.

While elevated mortgage rates deter potential buyers and constrain sellers, Zillow economists attribute the upcoming price rise primarily to the scarcity of available homes. Despite ongoing affordability concerns, tight inventory conditions are expected to exert upward pressure on home prices.

Zillow’s forecast model indicates that 120 of the largest housing markets out of the nation’s top 400 are poised for even more substantial growth than the 6.5% average. This projection, reported by Fortune, spans across various regions in the country.

Idaho and Utah are highlighted as states where such promising market gains could materialize, according to the data. The assessment is based on the Zillow Home Value Index, reflecting home prices.

Here’s a breakdown of the regional forecasts for home prices in Idaho:

• Boise — up 6.4%
• Twin Falls — up 8.8%
• Pocatello — up 9%
• Idaho Falls — up 7.6%

These forecasts come as areas in the West, including Idaho have seen some of the most dramatic home price corrections amid rising mortgage interest rates.