Foreclosures are a part of every market these days, but 2009 ravaged the Boise Idaho real estate market so savagely that just fewer than 1 in 20 homes were foreclosed upon. The fact that Boise has had a year over year increase in foreclosures of 103%, besting the previous record of 2008, putting Boise atop the nations list of highest foreclosure rates. Area homeowners are being forced to go back to the drawing board when they consider they live in the 24th most troubled real estate market in the nation. Given that the unemployment rate in the area is a steady 10.1%, and there is no scheduled company moving in, it may need a while to change this current market around.

There have been numerous contributing factors to Boise Idaho real estate, in this equation. Since 1980, it has experienced a population boom which has doubled its numbers, and business has grown into previously dark, unchartered corners. Tech industries have come into the mixture, and Micron Technology is now the city’s largest employer.

As in many Western towns, the Boise Idaho real estate market was quite unstable throughout the boom. The typical home price increased from about $150,000 through 2003 to $260,000 at its top in 2006, according to the Wells Fargo-National Association of Home Builders housing opportunity index. Since then costs have fell more than 32%.

Being at stuck in a global economic slowdown and at the epi-center of a certain degree of speculative investments, were the 2 biggest factors in the crisis in the Boise Idaho real estate market. As more and more people move into an area, the demand for housing increases pushing speculative investment more to the forefront.

When prices started to slow down, the speculators pulled out, driving prices down further and entangling some buyers underwater. Many flippers were caught in the downswing and lost their property. Correspondingly, jobs began to disappear too. High tech jobs went through a serious round of layoffs with about 2000 Micron employees and hundreds of HP workers losing their jobs, increasing the misery index on the Boise Idaho real estate market.

According to one local economist, local home construction has nearly completely halted. Even though areas like Las Vegas and Phoenix have experienced sharper downturns than the Boise Idaho real estate market, time are still tough but will turn around eventually.

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