A booming mountain town has defied the nationwide housing recession, with experts saying the market is “immune” to sky-high mortgage rates.
Home prices in Boise, Idaho, soared as homebuyers flocked to the Gem State during the pandemic. Data shows the region has surprisingly maintained that gain.
While there are “many reasons contributing” to the stable housing market in the scenic town, Andrea Pettitt of Silvercreek Realty Group told DailyMail.com that homebuyers are happy with the “fairly steady price growth” over the past few years.
Although the supply of homes in the state capital is low, more and more first-time buyers and others who keep an eye on prices are entering the housing market.
“Buyers are happy to see homes coming on the market… and values not going up dramatically,” Pettitt said.
Home prices in Boise, Idaho, have been stagnant for about a year after prices skyrocketed as homebuyers flocked to the Gem State during the pandemic
While many people have moved to Boise during the COVID-19 pandemic, Pettitt said a “large portion” of retirees and even early retirees have come to the city.
She added that Boise has low unemployment, new technology companies are establishing themselves and an abundance of restaurants, health care, shopping and entertainment — all of which appeal to newcomers and locals alike.
The realtor with 22 years of experience said most people move here from California, Texas and Washington state.
Pettitt expects this stable price trend to continue into the fall and even spring of 2025, creating “continued growth” in the city.
Matthew Walsh, an economist at Moody’s Analytics, told DailyMail.com that home prices in Boise are “down about seven percent from their 2022 peak.”
Walsh added that Boise is the second most overrated city in the country.
Matthew Walsh of Mood Analytics told DailyMail.com that home prices in Boise are “down about seven percent from their 2022 peak.” (Pictured: A home for sale in Boise)
Americans flocked to rural states like Idaho during the pandemic, as workers from big cities like New York and San Francisco began working from home en masse.
At the time, homes were so expensive that buyers snapped them up with a low price tag. And Idaho’s picturesque landscapes also provided Americans in lockdown with some much-needed peace from inside their homes.
U.S. Census data shows Idaho was the second-fastest growing state last year, with a population increase of 1.8 percent.
The rising demand, in turn, has caused prices to rise. A 2022 study by the Idaho Department of Labor noted that the average value of single-family homes had increased by about 173 percent compared to 2011.
Homebuyers are facing the toughest real estate markets in recent history as rising mortgage rates have been driven higher by the Federal Reserve’s aggressive rate hikes.
While many people have moved to Boise during the COVID-19 pandemic, Pettit revealed that a “large portion” of retirees and even early retirees have made their way to the city
According to figures from government-backed lender Freddie Mac, the average interest rate on a 30-year mortgage is 6.35 percent.
This means buyers will have to pay about $1,000 more per month for a home than if they had bought it in August 2021, when interest rates were around 2.87 percent.
Rising interest rates have effectively frozen the U.S. real estate market as millions of homeowners are reluctant to give up cheap mortgages they took out when rates were historically low.
There has been speculation that the housing market could collapse soon due to declining demand.
Home prices fell 0.1 percent month-over-month in May, according to the Federal Housing Finance Agency.