Boise, Phoenix Prep for Big Changes Ahead After Years of Record Home Sales

Considered by Fortune to be the “poster child of the Pandemic Housing Boom,” Boise became a haven for white-collar workers who left cities like San Francisco and Seattle during the rise of remote work. Between disappearing inventory, toe-to-toe competition, and a staggering 65% increase in regional home prices, Boise quickly became overheated, and its inevitable cooldown is finally underway.

By December, John Burns Real Estate Consulting predicts that the popular Idaho market could be recording negative year-over-year home prices as home sales continue to plummet, and according to Fortune, these recent market changes aren’t just isolated in Boise.

What's going on? Regional housing markets that became the most detached from underlying economic fundamentals are now cooling the fastest. These bubbly markets, including places like Denver and Nashville, simply saw home prices climb too high during the pandemic. Once historically low mortgage rates disappeared this spring, would-be buyers began to feel the full brunt of record home price appreciation. Many home shoppers quickly called off their home search.

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