Registered: 1146601993 Posts: 43
Reply with quote #1
http://www.idahostatesman.com/apps/pbcs.dll/article?AID=/20060824/NEWS0203/608240360 Key points • Meridian last month issued the fewest single-family building permits for any month since November 2002. That ended a 2-1/2-year boom in what was once the hottest market in the state.
• Total sales of residential housing in the Treasure Valley fell 13 percent from July 2005 to July 2006.• Residential building permits in Boise were off 21 percent from July 2005.
• Sales in Ada County fell 15 percent, and in Canyon County 8 percent. • The number of homes for sale has risen dramatically, from 1,779 in January to 5,500 in mid-August. "The investment doesn't pencil out for a $200,000 home, even with 20 percent down. It won't cash flow," she said.
Registered: 1142577338 Posts: 356
Reply with quote #2
I have been saying that about Boise since 2004. I lived outside Boise from 2002-2005 and had serious interest in buying there before the runup and still couldn't justify it. 900 sq/ft homes in Boise around BSU rent out for 600 a month and cost 200K... in 1998 they were 100K.. my guess is they are worth 130K max. After viewing the historical appreciation in Boise it appears it cyclically goes up strong 1-3 quarters and stays falt to slightly down for years after. I expect flat to slightly declining prices there for some time to come. Even my realtor is telling me there are just too many empty homes that are overpriced for the local wage. Plenty of land to choose from as well. I like the town.. Have two kids in college there but laugh at the prices from an investment standpoint.
thanks for the article.