Boise Idaho Real Estate And The Foreclosure Turmoil!
February 1, 2010 by Gavin J. King
Filed under Investing
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. With a foreclosure rate of 24th in the country, the image does seem sparse and many property owners are really trying to find out what solutions they may have. With so many people in construction due to the rapid development the town experienced over the past 10 years, the 10.1% unemployment figures make sense but do not help.
The condition of the Boise Idaho real estate market has been a product of several key ingredients. Since 1980, it has experienced a population boom which has doubled its numbers, and business has grown into previously dark, unchartered corners. With a growing technology industry, local mega-corporation, Micron Technology employees the most people of all local businesses.
With growth come growing pains and the Boise Idaho real estate has certainly had its share of that. During the boom housing costs jumped from around 150k to about 260k in the three fastest years, according to a major housing index. From then to now, prices have decreased by nearly 50%
Christine Loucks, an economics teacher for BSU, attributes the foreclosure run-up in town to two main origins: A small speculative bubble in the Boise Idaho real estate sector that has burst and the economic slowdown. As more and more people move into an area, the demand for housing increases pushing speculative investment more to the forefront.
After prices hit their apex speculation all but stopped which left locals to fight their way through all of the inflated costs the speculation brought. The vast majority of home flippers wound up writing off much of their homes and assets. Job losses also began to mount. Micron laid off 1,500 to 2,000 workers, HP slowed some of its operations, and the financial and construction in the Boise Idaho real estate industry, employers also cut jobs.
According to one local economist, local home construction has nearly completely halted. When you look at the big picture, the Boise Idaho real estate market has experienced all of the highs and lows of the rest of the larger real estate markets in the west.
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! Click here to get your own unique version of this article with free reprint rights.
