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Idaho
A rapidly expanding economy has boosted Idaho to the forefront of the national real estate scene. But booming growth is waning as new home starts slump from their rapid pace to slow Idaho real estate.
Idaho has gained a reputation for a higher quality of life than many other areas of the country, and is one of the most business friendly states in the nation.
In the state’s largest city, Boise the economy has been booming for nearly five years, and it should outpace the national economy in 2008 with a growing population fueled by job growth. New employers, including a handful of the nation’s largest companies make Boise their headquarters.
Boise’s growth has been so significant that home prices have hit all-time records, despite an increasing slow down in its market. A new convention center is planned for downtown construction scheduled to start this year.
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| City |
Forecast |
| Boise |
3.5% |
| Coeur d'Alene |
− 4.8% |
| Kellogg |
3.5% |
| Idaho Falls |
3.8% |
| Sun Valley |
3.2% |
The credit crunch has just begun having an impact on the local housing market, but Boise should weather the mortgage melt down well, despite an increase in foreclosures. Home building has been slower than in past years, which should act to at least partially protect the market from major price declines. Housing Predictor forecasts Boise home sales to be off last year’s pace in 2008 and record appreciation of just 3.5% on the average home.
Up north in Coeur d’Alene home sales have been heavily impacted by declining values as a result of the credit crunch, and prices are beginning to show major drops in many areas. Coeur d’Alene had been on a record period of growth for a number of years before the market slowed, and is now destine to see even fewer home sales in 2008 on the way to forecast deflation of 4.8%.
In Kellogg the community has been transformed from an old mining town and one of the worst toxic dumps in the country to a swanky destination snow skiing resort. Silver Mountain Ski Resort has blossomed into a posh condo and high end development. Despite an expected slump in sales, Kellogg is projected to do relatively well through the year, racking up 3.5% appreciation.
In Idaho Falls the housing market has been growing for years with an influx of new residents, many of whom are from California like most of the pacific north-west. Home prices have experienced double digit appreciation. But the market has slowed and is forecast to appreciate just 3.8% in 2008.
Like most ski resort communities, Sun Valley has lost its ski bums replaced by a growing wealthy class. Sun Valley has some of the nicest homes in the state, and the priciest. The rich buy homes for vacations and don’t care as much about the price, which is chiefly why Sun Valley will appreciate a forecast 3.2% by year’s end.
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