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The booming mountain city where house prices are defying gravity thanks to influx of retired homebuyers despite sky-high mortgage rates
A booming mountain city has defied a nationwide real estate slowdown as experts claim the market is 'immune' from sky-high mortgage rates.
The cost of homes in Boise, Idaho, sky-rocketed after homebuyers swarmed to the Gem State during the pandemic and astonishingly the region has managed to hold onto those gains, figures show.
Though there are 'a lot of reasons that contribute' to the stable housing market in the scenic city, Andrea Pettitt of Silvercreek Realty Group told DailyMail.com that homebuyers have been pleased with the 'pretty steady price appreciation' in recent years.
Even though there is a low inventory of homes in the state's capital, new buyers and others that have kept an eye on prices are entering the market there.
'Buyers are glad to see houses come on the market... and not have dramatic appreciation,' Pettitt said.
The price of homes in Boise, Idaho , have been at a standstill just about a year after prices sky-rocketed following homebuyers swarming to the Gem State during the pandemic
Although a lot of people relocated to Boise during the COVID-19 pandemic, Pettitt revealed that a 'big chunk' of retirees and even early retirees have been making their way into the city.
She added that Boise has low unemployment rates, new tech companies moving in, and an abundance of restaurants, healthcare, retail spots and entertainment - all of which appeal to newcomers as well as locals.
The realtor of 22 years said that the majority of people have been moving there from California, Texas and Washington state.
Pettitt believes that this steady price trend will last into the fall and even into Spring 2025, creating 'continued growth' in the city.
Moody's Analytics economist Matthew Walsh told DailyMail.com that home prices in Boise have 'measured down about seven percent from their peak in 2022.'
Walsh added Boise is the second most overvalued city in the country.
Matthew Walsh with Mood Analytics told DailyMail.com that home prices in Boise have 'measured down about seven percent from their peak in 2022.' (pictured: A home for sale in Boise)
Americans flocked to rural states like Idaho during the pandemic when a widespread shift to working from home unchained employees from big cities like New York and San Francisco.
At the time, properties were priced so low buyers raced to snap them up. And Idaho's picturesque landscapes also gave locked down Americans needed respite from the insides of their homes.
US Census data showed that Idaho was the second-fastest growing state last year, after seeing its population grow by 1.8 percent.
Soaring demand in turn pushed up prices. A 2022 study by Idaho's Department of Labor noted that the average value of a single-family-home had rocketed by around 173 percent when compared to 2011.
Prospective homebuyers are facing the toughest real estate markets in recent memory thanks to soaring mortgage rates, pushed up by the Federal Reserve's aggressive interest rate hikes.
Although a lot of people relocated to Boise during the COVID-19 pandemic, Pettit revealed that a 'big chunk' of retirees and even early retirees have been making their way into the city
The average rate on a 30-year home loan is 6.35 percent, according to figures from government-backed lender Freddie Mac.
It means buyers face paying around an extra $1,000 per month on a home than if they had bought in August 2021, when rates were hovering at 2.87 percent.
Rising rates have effectively 'frozen' America's real estate market as millions of homeowners are reluctant to give up the cheap mortgages they locked into when rates were at record lows.
It has led to speculation the housing market could soon crash thanks to weakening demand.
According to the Federal Housing Finance Agency, property prices dipped 0.1 percent on a month-on-month basis in May.