What is Appreciation?
Appreciation is an increase in the value of an asset, in this case real estate, over time. Driving factors that may cause the increase are: increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease over time. Obviously the Boise Real Estate market has seen some pretty serious decline in appreciation due to a multitude of factors.
Here is Idaho’s Chart on Appreciation from 1991 to 2009 Quarter 3
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