Report this week found Idaho homes were the most overvalued in the USThe Gem State is a pandemic ‘boom town’ after attracting influx of homebuyers But as mortgage rates rise, residents are at risk of falling into negative equity
Its expansive ski resorts, low living costs and vast hot springs attracted an influx of homebuyers during the pandemic.
But is Idaho‘s red-hot housing market coming to a fiery crash? Experts estimate homes in the Gem State are now more than 40 percent overvalued after soaring demand artificially pushed up prices.
And as mortgage rates also rise, it means residents are at risk of falling into negative equity.
Data from property platform Redfin shows that the median cost of a home in Idaho’s capital Boise is now $515,000. It marks a drop from their peak of $583,000 in May 2022 but remains well above the $333,029 cost in December 2019.
It is little wonder then that experts are concerned.
‘People moving in were drawn by its affordability relative to other Western metros as well as its natural beauty and outdoor lifestyle,’ Redfin’s chief economist Daryl Fairweather told DailyMail.com.
‘But the housing market has cooled as mortgage rates have surged over the last 18 months, pricing out a lot of would-be buyers. Most homeowners – especially those who bought before 2022 – have a lot of equity in their home.’
This week a report by Moody’s Analytics found that Idaho was home to the most overvalued properties in the US.
Researchers calculated houses were currently selling for 41.8 percent above their true value. On average American homes are thought to be 15 percent overvalued.
When the analysis was conducted, Moody’s used data from August, when the median