Foreclosures are a part of every market these days, but 2009 ravaged the Boise Idaho real estate market so savagely that just fewer than 1 in 20 homes were foreclosed upon. With 2008 being such a bloodletting, you would think that a 103% increase in foreclosures in 2009 would cause the governor to request national disaster status. Finding your city among the top 24 most troubled real estate markets in the nation has too many homeowners reviewing the limited options that are out there. Given that the unemployment rate in the area is a stable 10.1%, and there is no scheduled business moving in, it may need a while to change this economy around.
There have been numerous contributing factors to Boise Idaho real estate, in this equation. Since 1980, it has experienced a population boom which has doubled its numbers, and business has grown into previously dark, unchartered corners. Tech industries have come into the mixture, and Micron Technology is now the city’s largest employer.
Most burgeoning cities experience a certain amount of trauma and the Boise Idaho real estate market had its share. Over the course of the boom period, home prices skyrocketed by about 80%, according to a major housing index. Pricing decreases of upwards to 35% have since plagued the market.
Christine Loucks, an economics professor for BSU, attributes the foreclosure run-up in town to two main sources: A small speculative bubble in the Boise Idaho real estate industry that has burst and the fiscal slowdown. Whenever there is a quick population increase, there is frequently real estate speculation due to the increased demand for housing.
When prices started to slow down, the speculators pulled out, sending prices down further and entangling some buyers underwater. A lot of these speculators ended up losing their homes and assets. Unemployment rates increased as many were laid off. Area employers started to eliminate many positions, with Micron laying off around 2000 and HP cutting several hundred jobs, the Boise Idaho real estate market began to suffer.
According to one local economist, local home construction has nearly completely halted. 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.
The author enjoys writing articles about Boise Idaho real estate and real estate in Boise Idaho. Click on the links above to learn more about these topics!