“The Idaho Housing Dream Has been Hijacked”
Is Idaho's incredible housing run of rising valuations finally ending? For years, national experts have predicted a housing crash or adjustment for Boise and the surrounding communities. Boise has the unique distinction of being America's most overvalued housing market. Do we see the beginning of the end?
Rising home prices and the inability of workers' wages are beginning to impact the ability of Idahoans to buy a home. Our state's real estate values have risen well into the double digits, but wages have not kept up with home prices.
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Real estate agent Greg Fererra tells us that the Treasure Valley inventory is lower than last year at this time. "An entry-level home in our area is around $400,000; if you're making $60,000 a year, you can't afford a home in that price range." Mr. Fererra says that the rising interest rates, currently between five and seven percent, limit a person's ability to finance a home at an affordable house payment.
The Idaho Statesman reported that home prices had risen four times faster than wages. Current Idaho homeowners are not out of the hot water as property taxes continue to increase without any relief in site.
Some additional details on the state of income for Idahoans from point2homes.com.
"The average annual household income in Idaho is $69,614, while the median household income sits at $53,577 per year. Residents aged 25 to 44 earn $61,786, while those between 45 and 64 years old have a median wage of $64,886. In contrast, people younger than 25 and those older than 65 earn less, at $40,335 and $42,678, respectively."
"The Idaho Housing Dream has been Hijacked," says Fererra. "Housing prices have made the state unaffordable for working Idahoans who are middle class. Big money from out-of-state homeowners drives up the costs, and working-class folks financing their homes cannot keep up with the bidding war."
There is some good news on the way if the market cools down. Ferrera says prices will lower which may allow some Idahoans who are priced out of the market to get back in and finally become homeowners.
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