Boise was an almost unknown city on the real estate map until the covid pandemic occurred-20 . Since then, home values in this Idaho town have skyrocketed.
But for some specialists, the behavior of the real estate market in Boise could be one of the first signs that something is happening with this sector and that, at some point , things will change state.
To understand what is happening in Boise it is necessary to look at the figures that have allowed a ferocious real estate development in this small city , now a magnet for thousands of people who have moved from the west coast.
In Boise, housing prices have increased by more than 59% between March 2021 and March 2022, according to the specialized real estate platform, Zillow.
For experts, this data is not only unsustainable, but it is a sample matters before the market is headed for a “major restart”.
If you compare this figure with the national average increase, you will see that in Boise the increase exceeds 40 percentage points to 20 % YoY National.
With the hikes, the median price of a home in Boise is $589,627 dollars, as measured by Zillow.
“Any time prices have gone up that much in a short period of time, that’s a sign, to me, that something is brewing here,” said James McGrath, a real estate broker based in New York.
The impact is so noticeable in the escalation of prices, that for the first time a neighborhood in this city reached prices that exceeded one million dollars in the area known as North End.
However, the results of an investigation carried out by the Flori da Atlantic University would show that the price increase is artificial and that Boise is, in fact, the city with the most overpriced prices in the country.
The data indicates that the markup on a home in Boise is 75% compared to what it should be worth. In a comparison, the report points out that in New York, the premium on a home would be only 3%.
Boise is also one of the metropolitan areas with the highest population growth in recent years, with an annual rate of 4% or more of 795,000 people each year.
The experts they hope that the rise in mortgage rates will finally hit home prices and, they assure, that they will do so more strongly in areas with high price premiums such as Boise.
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