National Publication Boise May Be Center of Real Estate Collapse
The Boise Real Estate market is not what it was last summer. It wasn't uncommon to hear about homes being sold before they were posted on the Intermountain MLS. Have you noticed that there are more homes on the market than last year at this time?
According to the Idaho Statesman, the inventory in Ada and Canyon Counties has risen. "At the end of June, there were 2,135 homes for sale. That’s a 192.9% increase from June 2021 and the highest inventory since September 2016. It added up to an inventory of 2.4 months, meaning if no more homes came on the market, the available homes for sale would all be sold in that time."
Realtors tell us that a few factors have caused the home slowdown in the Boise market. Last year, the interest rates were at historic lows, energy was more affordable, and inflation was beginning to rise. This year interest rates are going up and up as the fed will raise interest again this week.
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Now a national publication, 247wallst.com, says that Boise could be ground zero for massive price reductions. The site reminds listeners of the Florida Atlantic study reporting that the Boise market has been the country's most overvalued real estate market for the last two years.
"If high mortgage rates hit housing prices, and they will, markets where homes are overpriced are most subject to resets. Boise is at the top of that list."
Will Idaho Continue to be a Destination State?
The California to Idaho express doesn't appear to be slowing down. However, if the California market suddenly loses momentum, Idaho could see the impact. If Californians cannot cash out of their homes as they have done in the past to buy affordable homes in Idaho, we could see a further slowdown in growth.
Higher interest rates will also begin to force prices down as qualified buyers will not be able to access the 'cheap money that lower interest rates provided to them last year.
There is some good news for home buyers. The market is now becoming a buyer's market, which means competitive pricing and more value for home buyers.
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