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Inside America’s most OVERVALUED housing market: Idaho underwent a property boom during the pandemic but experts say homes are selling 40% higher than their true worth – leaving owners at risk of negative equity

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Inside America’s most OVERVALUED housing market: Idaho underwent a property boom during the pandemic but experts say homes are selling 40% higher than their true worth – leaving owners at risk of negative equity


Its expansive ski resorts, low living costs and vast hot springs attracted an influx of homebuyers during the pandemic.

But is Idaho’s red-hot housing market coming to a fiery crash? Experts estimate homes in the Gem State are now more than 40 percent overvalued after soaring demand artificially pushed up prices. 

And as mortgage rates also rise, it means residents are at risk of falling into negative equity. 

Data from property platform Redfin shows that the median cost of a home in Idaho’s capital Boise is now $515,000. It marks a drop from their peak of $583,000 in May 2022 but remains well above the $333,029 cost in December 2019. 

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It is little wonder then that experts are concerned. 

Data from property platform Redfin shows that the median cost of a home in Idaho’s capital Boise is now $515,000. It marks a drop from their peak of $583,000 in May 2022 but remains well above the $333,029 cost in December 2019

Americans flocked to rural states like Idaho during the pandemic when a widespread shift to working from home unchained employees from big cities like New York and San Francisco

Americans flocked to rural states like Idaho during the pandemic when a widespread shift to working from home unchained employees from big cities like New York and San Francisco

‘People moving in were drawn by its affordability relative to other Western metros as well as its natural beauty and outdoor lifestyle,’ Redfin’s chief economist Daryl Fairweather told DailyMail.com.

‘But the housing market has cooled as mortgage rates have surged over the last 18 months, pricing out a lot of would-be buyers. Most homeowners – especially those who bought before 2022 – have a lot of equity in their home.’

This week a report by Moody’s Analytics found that Idaho was home to the most overvalued properties in the US. 

Researchers calculated houses were currently selling for 41.8 percent above their true value. On average American homes are thought to be 15 percent overvalued.

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When the analysis was conducted, Moody’s used data from August, when the median house price in the state was slightly lower at $476,000. A slight uptick in prices this month means homes are becoming even more inflated.

The research looked at the long-term relationship between house prices and the factors that were driving demand. Demand was calculated by household incomes in the state, household formations and the cost of constructing properties. 

Moody’s Analytics economist Matthew Walsh said: ‘If you look at Idaho over the past three years, you’ve had this extreme run up in home prices since the pandemic began.

Researchers calculated houses were currently selling for 41.8 percent above their true value. Pictured: A five-bedroom, four-bath home in Sugar City, Idaho currently on the market for $675,000

Researchers calculated houses were currently selling for 41.8 percent above their true value. Pictured: A five-bedroom, four-bath home in Sugar City, Idaho currently on the market for $675,000

A 2022 study by Idaho's Department of Labor noted that the average value of a single-family-home had rocketed by around 173 percent when compared to 2011. Pictured: a 3-bedroom, 4-bathroom home for sale for $624,998 in Sandpoint, Idaho

A 2022 study by Idaho’s Department of Labor noted that the average value of a single-family-home had rocketed by around 173 percent when compared to 2011. Pictured: a 3-bedroom, 4-bathroom home for sale for $624,998 in Sandpoint, Idaho

‘So if you look at that relative to the demographic drivers – the household formation and the income growth there – that run up has been so much more extreme which is why we see the inflated valuation of houses there.’

Americans flocked to rural states like Idaho during the pandemic when a widespread shift to working from home unchained employees from big cities like New York and San Francisco.

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At the time, properties were priced so low buyers raced to snap them up. And Idaho’s picturesque landscapes also gave locked down Americans needed respite from the insides of their homes. 

US Census data showed that Idaho was the second-fastest growing state last year, after seeing its population grow by 1.8 percent. 

Soaring demand in turn pushed up prices. A 2022 study by Idaho’s Department of Labor noted that the average value of a single-family-home had rocketed by around 173 percent when compared to 2011. 

But across the board, fears are growing of a house price crash in America. 

The property market has been rocked by the Federal Reserve’s aggressive interest rate hikes which have in turn sent mortgage payments soaring. 

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The average rate on a 30-year fixed home loan is now 7.79 percent, according to the government-backed lender Freddie Mac. Separate data from Mortgage News Daily suggest rates are already as high as 8 percent for the first time since 2000.

Earlier this month, former analyst Meredith Whitney – who was once dubbed the ‘Oracle of Wall Street’ – predicted that house prices will crash for the first time in a decade next year. 

When mortgage rates rise and house prices plummet, homeowners are at risk of falling into negative equity – meaning the outstanding mortgage balance is higher than the value of their property. 

Falling into negative equity can make it difficult to sell or refinance a home – leaving many feeling trapped in their property. The issue exploded into a crisis during the 2008 financial crash when house prices plummeted overnight. 

In July, a report by CoreLogic found US homeowners had already lost $108.4 billion in home equity so far this year. Researchers estimated it left 200,000 properties at risk of ‘going under’ if prices fell by another 5 percent.

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The data found properties in Idaho had already lost $33,000 in equity. 

What should you do if you fall into negative equity? 

Wait out the crisis 

With every new mortgage payment you gain a small amount of equity in your property (unless you have an interest-only mortgage). You can then ride out the storm until house prices start to rise again and take your equity out of the negative. 

Consider a special negative equity refinancing loan 

Although being in negative equity can make it difficult to refinance, some special programs exist to help those in negative equity.  Erica Brenning, of Cash Buyers Net, said: ‘One approach is to negotiate with the lender for a loan modification or explore government programs designed to assist homeowners facing negative equity.’    

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Consider a short sale 

Lenders will sometimes agree to a ‘short sale’ – whereby they accept a mortgage payoff amount less than what is owed to facilitate the sale of the property. 

Molly Haines, of Cash Home Buyers, said: ‘This option allows homeowners to avoid foreclosure and minimize the impact on their credit score.’



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Idaho

A very wet holiday week lies ahead

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A very wet holiday week lies ahead


After a short dry spell this past week, Idaho is gearing up for a wet holiday week ahead with plenty of precipitation to come.

It started off today with light snow falling in the mountains but not much making it to the valley floor in terms of rain. Tomorrow the Magic Valley will see some rain sweep through the region as a stray pattern will bring in early rain separate from the main systems later this week.

Monday night into Tuesday morning is wave #1, which will deliver precipitation to almost all of Idaho. Tuesday will see another wave pass through before things clear out just in time for Christmas Day.

Wednesday’s clear weather only lasts for a moment as more rain arrives on Thursday & Friday, with more to come next Saturday.

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Happy Holidays everyone! Enjoy the season and stay dry this week!





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Idaho Fish and Game euthanizes mountain lion in central Idaho after it killed pet cat – East Idaho News

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Idaho Fish and Game euthanizes mountain lion in central Idaho after it killed pet cat – East Idaho News


KETCHUM (KMVT) — Idaho Fish and Game said they euthanized a mountain lion after it killed a resident’s pet cat south of Ketchum on Wednesday.

A young female mountain lion grabbed the cat within minutes of the owners letting their pet outside into their fenced backyard, according to Fish and Game.

Fish and Game set up a trap at the residence to protect the safety of area residents and their pets. The lion was later trapped that day and euthanized by Fish and Game officers.

“As with any decision that we are faced with to trap and put an animal down, our staff have to make the hard call to protect area residents and their pets” said Craig White, regional supervisor of the Magic Valley Region. “We don’t take these decisions lightly, but ultimately, our responsibility is to protect public safety. When a mountain lion exhibits aggression toward people or their pets within the confines of a fenced yard we need to take appropriate actions.”

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Fish and Game warned residents to keep pets on leashes, feed pets indoors, and make sure the yard is clear to help prevent predators like mountain lions from attacking.

Wildlife managers advise residents to never run away or turn your back on a mountain lion, according to Fish and Game. Slowly back away while maintaining eye contact and safety devices like bear spray can help.

Fish and Game also reminded residents to not feed wildlife or leave garbage outside and unsecured. Residents should call 911 immediately to report any encounter that results in an attack.

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The Day Four Lightbulbs Changed the World: Idaho’s Historic First Step in Nuclear-Powered Electricity

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The Day Four Lightbulbs Changed the World: Idaho’s Historic First Step in Nuclear-Powered Electricity


On a cold December afternoon in 1951, four ordinary 200-watt lightbulbs glowed in a modest brick building near Arco, Idaho. This seemingly small feat represented a monumental scientific achievement—the first generation of electricity from nuclear energy. Behind the unassuming scene stood the Experimental Breeder Reactor-I (EBR-I), a pioneering facility that helped lay the groundwork for the nuclear age.

Location and Origins: A Reactor in the Idaho Sagebrush

EBR-I was located on the Idaho National Reactor Testing Station (now the Idaho National Laboratory), a sprawling facility established by the U.S. Atomic Energy Commission (AEC) to develop and test nuclear reactor technologies. Situated in the remote southeast Idaho desert, the site offered isolation and security for these groundbreaking experiments.

Construction of the EBR-I began in 1949, spearheaded by scientists who had been instrumental in the Manhattan Project, the top-secret World War II initiative that developed the first atomic bombs. Among the key figures were Harold Lichtenberger, the project manager, Walter Zinn, a renowned nuclear physicist, and Aaron Novick, a specialist in reactor design. Their goal was ambitious: to demonstrate the viability of breeder reactors, which could revolutionize nuclear energy by producing more fuel than they consumed.

Breeder Reactors: Expanding the Potential of Nuclear Power

The concept of a breeder reactor was rooted in addressing the limited supply of uranium-235, the isotope crucial for sustaining nuclear reactions. Natural uranium is composed of about 99% uranium-238, a stable isotope that cannot undergo fission under standard conditions. Breeder reactors like EBR-I were designed to transform uranium-238 into plutonium-239, a fissionable material.

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This transformation required a sophisticated sequence of nuclear reactions. In the EBR-I core, uranium-238 absorbed high-energy neutrons, resulting in the formation of neptunium-239, which quickly decayed into plutonium-239. The plutonium then served as fuel for sustained fission reactions, generating heat and additional neutrons to perpetuate the process.

A critical component of the reactor was its liquid metal coolant, a eutectic mixture of sodium (Na) and potassium (K) known as NaK. This alloy was chosen for its excellent thermal conductivity and low melting point, enabling efficient heat transfer within the reactor core. After absorbing heat from the nuclear reactions, the NaK coolant circulated to a secondary heat exchanger, where it transferred the thermal energy to a water-steam system. The resulting steam turned turbines to produce electricity.

Experimental Breeder Reactor I (ebr I)
Experimental Breeder Reactor I (EBR-I), the world’s first electricity-generating nuclear power plant, Arco, Idaho, USA.

The Moment of First Light: December 20, 1951

The culmination of years of design, construction, and testing came on December 20, 1951, at precisely 1:50 p.m. Inside the compact brick building, Harold Lichtenberger flipped a switch, allowing the electricity generated by the reactor to flow to four suspended lightbulbs. Witnesses, many of them seasoned physicists, observed the event with measured enthusiasm. The moment was significant but understated, reflecting the pragmatic focus of the team.

When I turned the switch, I guess I was more interested in how the circuit breakers would function than I was in the significance of the test,” Lichtenberger later recounted. The real excitement for the team lay in verifying the reactor’s primary objective: demonstrating the efficacy of the breeder process and the conversion of uranium-238 into plutonium-239.

The following day, the EBR-I reactor achieved an output of 100 kilowatts, enough to power the building’s electrical systems. This marked another milestone, proving that nuclear power could provide practical amounts of energy beyond experimental conditions.

The Ebr-I Legacy: Laying the Foundation for Nuclear Energy

The success of the EBR-I experiment had far-reaching implications. By demonstrating the feasibility of breeder reactors, the project expanded the horizons of nuclear energy at a time when the world sought innovative solutions to growing energy demands. The reactor’s ability to produce more fuel than it consumed hinted at a sustainable nuclear future.

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In 1953, EBR-I achieved another historic milestone: it became the first reactor to use plutonium as a fuel source. These breakthroughs underscored the versatility of nuclear technology and its potential applications.

Despite these advancements, interest in breeder reactors waned in the 1960s. The discovery of vast uranium deposits and the development of more efficient enrichment techniques reduced the urgency for breeder technology. Additionally, concerns about the proliferation risks associated with plutonium dampened enthusiasm for widespread adoption.

Today, EBR-I remains a landmark in the history of science and technology. Designated a National Historic Landmark in 1966, the facility stands as a museum open to the public. Visitors to the site can see the original reactor, its instrumentation, and the historic lightbulbs that marked the dawn of nuclear-generated electricity.

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