State Real Estate Market Outlook
Realty Market Outlook Idaho State Profile - Spring 2006
Housing market conditions remained solid
Idaho reported a record level of housing permits issued in 2005. Year-over-year home price gains in the state accelerated to 18.6 percent in fourth quarter 2005 and continued to outpace the nation. The state will likely continue to report construction employment gains in 2006.
Nevertheless, deteriorating house price affordability, particularly in Coeur d’Alene, and rising interest rates may weigh on the state’s housing market going forward.
Innovative mortgages and investors may be influencing housing demand.2 Interest-only and negative amortization loans accounted for 45 percent of non-prime mortgage originations in Idaho during the first 11 months of 2005. During the same period, investors and second-home purchasers accounted for 37 percent of Idaho Alt-A mortgage originations.
|
