For the last several months, some of the hottest housing markets in the country have been in Idaho. That trend looks set to continue for the next year.
According to a new report from Veros Real Estate Solutions, the top four housing markets where house prices are expected to rise by the most in the next year are all located in Idaho.
That’s an increase from back in July when cities in Idaho made up the first and second spots on that list. Veros’ new report shows that cities in Idaho now take up the first, second, third, and fourth spots on the hottest housing markets list.
According to the report, Coeur D’Alene is set to be the hottest housing market over the next year, with house prices expected to rise by 16.2% in the next 12 months. Boise City is next on the list, with house prices expected to rise by 15.8%, followed by Idaho Fallas and Pocatello, where house prices are expected to rise by at least 14.5%.
Nearly all of the rest of the top 10 hottest housing markets are in the Western part of the country, including Phoenix; Salt Lake City; Provo, Utah; Ogden, Utah; and San Diego. Meanwhile, Spartanburg, South Carolina is the only city in the rest of the country to make the list.
Veros suggests that the reason for Idaho’s prevalence on the list is due to people moving to the state.
Nationwide, Veros expects house prices to rise by 7% in the next 12 months.
"Market fundamentals such as declining unemployment and low interest rates continue to keep house prices trending upward," said Eric Fox, Veros Real Estate Solutions Chief Economist.
"A limited supply of homes for sale and below-average new housing construction in recent years has fueled the red-hot market. Despite strong signals of upward inflation pressure, the Federal Reserve seems determined to keep interest rates low,” Fox continued.
“Although we expect some upward pressure on interest rates, they are likely to remain low into 2022,” Fox said. “This historically low interest rate environment in conjunction with numerous other factors is pointing to a continued robust housing market."