Increasing home sales triggered by lower priced properties and foreclosures have begun to turn the markets in Idaho. But housing in Idaho is far from stabilizing, which could take at least another year. Unemployment is cooling-off a rebound as the state battles job losses in construction, manufacturing and high-tech.
Home prices nearly doubled in many areas of the state during the boom, and the overly inflated prices are still coming back to earth. In Boise alone, housing values escalated 50% in just over five years due to creative financing and the go-go days of Wall Street.
Although more homes are selling in Boise, it will take at least another year before the market stabilizes to become attractive to more first-time home buyers, despite the federal government's first time home-buyers tax credit. Foreclosures are projected to rise in Boise as more homeowners walk away from their mortgages, triggering a downward trend forecast to deflate housing an average of 10.2% in 2009.
In the neighboring city of Nampa, home sales rose sharply. However, tougher financing standards have made it more difficult for many perspective purchasers to obtain mortgages in the fall-out of the credit crisis causing a slowdown that is entering its third year, despite a spike in sales as a result of the temporary federal tax credit. The crisis has resulted in a rise in defaults, taking a toll on Nampa, forecast to deflate the market 9.1% on average by year's end.
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