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Foreclosure Issues In The Boise Idaho Real Estate Market

Todays Date: December 19, 2018

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. The fact that Boise has had a year over year increase in foreclosures of 103%, besting the previous record of 2008, putting Boise atop the nations list of highest foreclosure rates. Area homeowners are being forced to go back to the drawing board when they consider they live in the 24th most troubled real estate market in the nation. Given that the unemployment rate in the area is a steady 10.1%, and there is no scheduled company moving in, it may need a while to change this current market 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.

As in many Western towns, the Boise Idaho real estate market was quite unstable throughout the boom. The typical home price increased from about $150,000 through 2003 to $260,000 at its top in 2006, according to the Wells Fargo-National Association of Home Builders housing opportunity index. Since then costs have fell more than 32%.

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.

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