Idaho cities top list of most overvalued real estate markets
Idaho real estate prices continue to soar, with home prices in ’tater state cities topping the ranks of the country’s most-overvalued markets, according to Fitch Ratings.
- The credit rating company compares current market prices with a proprietary estimate of “sustainable” prices, using the discrepancy to determine which cities are “overvalued” or “undervalued.”
The big picture: Idaho is in the epicenter of two powerful economic forces that have combined to result in explosive price appreciation for its relatively small markets:
- The work-from-home revolution that's freed remote workers to relocate to areas offering the lifestyle they’re looking for.
- Soaring wealth in nearby California, the source of many of the newcomers buying up houses.
Is it a bubble waiting to burst? Nobody knows. But, if the recent sell-off in technology stocks — a key source of Californian wealth — turns into an outright bust, don’t be surprised if the flow of Californian cash into Idaho slows a bit.