The Boise Idaho real estate market was devastated in 2009, with just fewer than 5% of all homes in the area being foreclosed upon that year. It is not a great statistic to be leading the nation in rate of foreclosure, but worse than that, the foreclosure rate is up more than 100% from the previous record setting year just a year before. Boasting the 24th highest foreclosure rate in the country, the situation seems pretty grim and is starting to make many homeowners seriously look at what remaining options they have. Many of the jobs in the area were centered on construction when the boom was going on, so it is no wonder the unemployment rate is hovering at 10.1%.
The condition of the Boise Idaho real estate market has been a product of several key ingredients. Its population has more than doubled since 1980, and its market has diversified over the past half century. With a growing technology industry, local mega-corporation, Micron Technology employees the most people of all local businesses.
As in many Western locations, the Boise Idaho real estate market was quite erratic during the growth. Home prices increased about 80% during the boom, from about 150k to about 260k during the peak years of the boom, according to the Wells Fargo NAHB Index. Pricing decreases of upwards to 35% have since plagued the market
The resident economist at Boise State University, Christine Loucks indicates that there were two main contributing factors in the foreclosure problems now plaguing the Boise Idaho real estate market, which included speculative investments and a huge economic slowdown. As more and more people move into an area, the demand for housing increases pushing speculative investment more to the forefront.
Residents were left to sort out the inflation in the market, when speculators left town after the market peaked and started declining. Many flippers were caught in the downswing and forfeited their homes. Job losses also began to mount. High tech jobs went through a serious round of layoffs with about 2000 Micron employees and hundreds of HP workers losing their jobs, increasing the misery index on the Boise Idaho real estate market.
Residential construction has just stopped, according to a local economist. Despite suffering through much less damaging crises than other areas of the west, the Boise Idaho real estate market has had its share of pain, but will rebound in the near future.
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