January 2025 Market Round Up

January 2025 Real Estate Round Up: Local and National Highlights

Local Real Estate News: Lemhi County

The January real estate market in Lemhi County brought a mix of steady trends and a few notable changes compared to last year. Whether you’re a buyer, seller, or just curious about the market, here’s a closer look at how the numbers stack up and what they mean for our community.

• New Listings: January 2024 and January 2025 each recorded 10 new listings, indicating stable seller engagement despite the seasonal slowdown typical of winter months.
• Properties Sold: The number of properties sold remained steady at 8 in both years, reflecting consistent buyer demand.
• Properties Under Contract: This metric held at 6 for both years, further reinforcing market stability.
• Average Days on Market (Residential): The average time residential properties spent on the market decreased significantly from 159 days in January 2024 to 106 days in January 2025—a 33% reduction—suggesting enhanced buyer activity and more competitive pricing strategies.
• Average Days on Market (Land): Land listings averaged 226 days on the market, a figure consistent with historical seasonal patterns.
• Available Inventory: Residential inventory increased from 37 units in January 2024 to 49 units in January 2025, a 32.4% rise. This expansion provides more options for buyers and may contribute to stabilizing prices.

Interest Rates Comparison

Interest rates showed modest fluctuations between January 2024 and January 2025. Currently, conventional interest rates are just over a ¼ percent higher while, the VA, RD and FHA rates are all lower than this time last year. These rate changes have affected buyer purchasing power, though their impact has been moderated by stable market conditions.

Seasonal Outlook

Winter is traditionally a slower period for real estate activity, and inventory movement is expected to remain limited for the next 30 days. However, as spring approaches, inventory is anticipated to increase within 60 to 90 days, presenting new opportunities for both buyers and more competition for sellers.

Broader Real Estate Industry News

The national housing market continues to navigate challenges associated with interest rates and affordability. While rates remain elevated compared to historic lows, recent stabilization has reduced market volatility. Some regions are experiencing improved balance as inventory gradually increases, although affordability concerns persist, particularly in high-demand urban areas.

Buyer behavior indicates a cautious approach, with many opting to wait until the second quarter of 2025 in hopes of lower interest rates. The Federal Reserve’s upcoming meeting at the end of January is unlikely to yield a rate cut, but their economic commentary will be closely monitored by investors in mortgage-backed securities. Should the Fed express optimism about the economy, it could lead to a gradual decline in mortgage rates, potentially reinvigorating buyer activity.

In addition, the conforming loan limit has increased to $806,500, enabling greater financing flexibility for higher-priced properties.

Additionally, Idaho has been ranked as the 10th most popular state for new residents. This trend underscores the steady influx of buyers moving to the state, many of whom are seeking properties like those available in Lemhi County. This migration strengthens the outlook for sustained demand in the local market.

Remaining informed about local and national trends is crucial for making strategic real estate decisions. Whether you are buying, selling, or evaluating your property’s value, I am here to provide guidance. Feel free to reach out with questions or for tailored insights into the Lemhi County market.