Boise’s pandemic housing boom begins to reverse

(Getty)

The country’s most overvalued housing market is coming back from a pandemic spike as mortgage rates rise, sending some newcomers back where they came from.

The Idaho Capital Region, one of the fastest accelerating markets over the past two years, is in reverse, the Wall Street Journal reported. After single-family home prices in the Boise area jumped 79% in two years, they are expected to fall 10%.

Remote workers have flocked to Boise during the pandemic, lured by its affordability and outdoor character, changing the city and its housing market beyond recognition. They arrived from elsewhere in Idaho and other western states, led by those in California and Washington.

Now the area trails only Austin, Texas in terms of overpriced homes. This matches an index from the National Association of Realtors that places the West as the worst region in the country in terms of accessibility.

Some people who moved to Boise are returning to their pre-pandemic homes to return to the office or be closer to family, the publication reported. Stagnant or falling prices could be good news for long-time residents who have been shut out of a market that was within their reach not too long ago.

“It’s gone way too far,” said Corey Barton, president of CBH Homes, the area’s largest homebuilder. “It’s slowly going back to the old Boise.”

About Teresa G. Wilson

Check Also

Here are the 10 American cities people most want to leave: Redfin

(NEXSTAR) – A combination of economic uncertainty, high valuations and rising mortgage rates is driving …