As 2025 reaches its halfway point, Southern Idaho’s real estate landscape continues to evolve, reflecting broader state and national economic shifts. With homebuyers adjusting to post-pandemic interest rate fluctuations and inventory still catching up to demand, the region’s housing market is at an interesting crossroads. Communities like Burley and Twin Falls offer insightful case studies on how Southern Idaho is navigating this transitional period.
Current Housing Market Overview
According to recent data from Zillow, Idaho’s average home value sits at $462,014, representing a 2.4% year-over-year increase. This moderate appreciation rate is a positive sign after the rapid surges seen during the pandemic years. Homes across the state are now going pending in an average of 30 days, slightly slower than in 2023 but still indicative of strong buyer interest.
Simultaneously, Redfin reports that Idaho’s median list price is hovering around $518,000, while the median sale price is slightly lower at $437,333. This gap reflects a softening in buyer power, with many prospective homeowners submitting offers under the asking price—an encouraging trend for those concerned about affordability.
Inventory Trends and Market Balance
One of the most defining aspects of the 2025 market so far has been the improvement in housing inventory. While not fully balanced, Southern Idaho has seen incremental gains. In February 2025, Idaho recorded 8,086 active listings, a slight 0.7% increase year-over-year. Though still below the ideal five-to-six-month supply needed for a fully balanced market, it’s a step up from the post-2021 housing squeeze.
Buyers are benefitting from the broader selection, especially in secondary markets like Burley and smaller towns surrounding Twin Falls. Yet, sellers are starting to experience longer listing periods and slightly more pressure to price competitively. The frenzy of bidding wars has cooled, and price reductions are more common, particularly for homes that need updates or are priced above neighborhood norms.
Spotlight on Burley: Stability and Opportunity
Burley, a community often overlooked in state-level analyses, has quietly emerged as a stable and appealing market. Housing demand here is fueled by steady population growth, low unemployment, and relatively affordable prices compared to larger Idaho cities.
As of mid-2025, Burley has seen a 3.0% increase in home values over the previous year. The median home price is still well below the state average, making it a popular choice for first-time buyers and families seeking more square footage. Interest in a house for sale in Burley often results in multiple showings within days of listing—though buyers no longer feel rushed into same-day decisions like they did during the peak of 2021–2022.
One of the reasons for this market’s stability is its economic foundation. Burley’s growth isn’t driven by speculative investment or sudden population surges. Instead, it’s sustained by agriculture, education, and small-scale manufacturing—industries that tend to weather national economic shifts more consistently. As a result, property values in Burley are less volatile and continue to appreciate at a steady pace.
Twin Falls: Expansion, But Caution
Twin Falls has historically been one of Southern Idaho’s most active markets, and 2025 is no different. The city continues to attract new residents due to its scenic appeal, robust job market, and expanding infrastructure. However, the housing market here is showing signs of cooling.
According to Realtor.com, the median listing price in Twin Falls now stands at $419,900, up nearly 7.7% from last year. The average sales price for single-family homes, based on local MLS data, is around $382,000—a 1.2% annual increase. While this reflects growth, it is slower than the double-digit hikes seen in the early 2020s.
Inventory is rising in Twin Falls, with over 320 active listings recorded in April 2025. However, these homes are staying on the market for an average of 87 days, up significantly from the 50–60 day averages in 2023. This increase in days on market suggests that buyers are regaining some leverage, and sellers may need to consider staging, pricing adjustments, or strategic improvements to move their properties.
What’s Driving These Trends?
Several macroeconomic and regional factors are influencing the 2025 Southern Idaho real estate market:
- Mortgage Rates: After peaking in 2023, mortgage interest rates have stabilized around 6.2–6.5%. This has brought some predictability to financing but remains a hurdle for lower-income buyers.
- Remote Work Flexibility: Idaho still benefits from an influx of out-of-state buyers seeking a slower pace of life. However, this trend has slowed compared to pandemic years.
- Construction Activity: New builds in Twin Falls and Cassia County are gradually improving inventory, although construction costs remain elevated due to supply chain fluctuations and labor shortages.
Looking Ahead: Market Outlook for the Rest of 2025
The second half of 2025 is expected to bring continued moderation. Experts anticipate that home values will rise modestly, with Southern Idaho likely seeing 1.5% to 3.5% appreciation in most markets. Inventory is expected to remain tight but more manageable than in the recent past.
For buyers, the market is becoming less intimidating, with more room for negotiation and a growing pool of listings to choose from. For sellers, pricing correctly and understanding hyperlocal trends will be key to moving homes efficiently.
Final Thoughts
Southern Idaho’s 2025 real estate market paints a picture of cautious optimism. The frenzy may be behind us, but opportunity remains—especially for those who are well-informed and financially prepared. Whether you’re eyeing Twin Falls for its amenities or searching for a quieter lifestyle with a house for sale in Burley, the key lies in timing, research, and working with knowledgeable local professionals.
