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Forecast: Idaho housing prices to rise further

A home under construction in Boise. File photo.

A new forecast of real estate markets around the nation predicted four Idaho cities will continue to see some of the biggest increases in values over the next year, with appreciation rates north of 9%.

Meanwhile, homes sold in Ada County set a median sales price record in June, according to Boise Regional Realtors.

California-based real estate analytics firm Veros’ forecast for the strongest and weakest markets through June 2020 showed the Gem State as one of three states with metro areas dominating the 10 top appreciation markets.

According to Veros, property values in the Coeur d’Alene (No.2), Idaho Falls (No.3), Boise City-Nampa (No. 4) and Pocatello (No. 9) markets will rise 9.5%, 9.4%, 9.1% and 7.2%, respectively.

Cities in Washington state and Texas were also solid performers, Veros said of the top ten.

Overall, Veros’ forecast predicted that the U.S. average home prices would continue to rise over the next year — likely slower than before — but not all cities will see growth.

The company’s latest VeroFORECAST predicts that, on average, the top 100 most populated metro areas will see 3.7% appreciation in the next year. This is in line with the rate predicted in the first quarter of 2019. The company said this is a decline from the 4.5% appreciation rate of a year ago.

“This flattening indicates that although there is a definite softness overall in the housing market, the fundamentals are healthy,” said Eric Fox, Veros vice president of statistical and economic modeling and the report’s author.

He said softening of mortgage rates is helping prop up values and stem any declines in most U.S. markets.

The impacts of soaring real estate aren’t all positive; higher rents and home prices are pushing many working-class residents out of cities like Boise or into unstable housing (and houseless) situations.

But the values keep increasing nonetheless.

The low housing supply in the Treasure Valley is a factor that’s been echoed by many experts on the uptick in values, and the continuing influx of new residents has helped.

The median sales price for Ada County reached a new record of $354,405 in June 2019. This was up 10.0% over the same month last year.

According to a release from Boise Regional Realtors, Ada County home prices continue to be driven by a decreasing supply of lower-priced existing homes compared to demand, new homes selling at overall higher prices due to rising construction costs, as well as increased purchasing power due to low mortgage rates.

Top Ten Markets for Appreciation through June 1, 2020

1. Odessa, TX +9.7%
2. Coeur D’Alene, ID +9.5%
3. Idaho Falls, ID +9.4%
4. Boise City-Nampa, ID +9.1%
5. Midland, TX +8.0%
6. Bellingham, WA +7.8%
7. Spokane, WA +7.4%
8. Kennewick-Pasco-Richland, WA +7.2%
9. Pocatello, ID +7.2%
10. Yakima, WA +7.2%

Bottom Ten

1. Grand Forks, ND-MN -1.9%
2. Bridgeport-Stamford-Norwalk, CT -1.7%
3. Baton Rouge, LA -1.6%
4. Lafayette, LA -1.2%
5. Norwich-New London, CT -1.0%
6. Danville, IL -0.9%
7. Shreveport-Bossier City, LA -0.7%
8. Hot Springs, AR -0.6%
9. Jonesboro, AR -0.4%
10. Houma-Bayou Cane-Thibodaux, LA -0.3%

Source: Veros Real Estate Solutions

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