2021 BOISE IDAHO REAL ESTATE BLOG
Boise Home Builders challenges this next quarter in 2012 Main Idaho Real Estate Insights
The Real Estate Market is a moving target but new construction is even more volatile. The latest talk around the water cooler is no longer about when will the home buyers return but now it is how do we keep construction costs down?

Boise Idaho Building Lots

The past two years the larger and financially stronger Boise builders have been buying subdivisions and now lot inventory is shrunk to the point that builders are scrambling to find good lots and lock them up. Just this week in talking to a builder, their recent experience was wait a day and the lots are gone. It had happened to them twice just in the last week.

It is interesting to note that at the end of the boom, both home buyers and home builders in Treasure Valley were frustrated by dedicated or preferred building teams. That meant that the home buyer was not able to choose a builder but either had to choose from a pre-determined group or the lot was owned by one builder. Many did not like that but it seems we are headed back towards that kind of market again. Several builders are selling lots witin communities they own but most of the 'Class A' subdivisions are now locked up. Some of them were purchased by investors, others still owned by banks but at this point the majority of the rush to find lots is dwindling. As a side note, though we have not seen lot prices increase dramatically, the shrinking supply and increased demand for new homes will eventaully collide, even though there is several years of lot inventory based on current demand. Also, the M3 project in Eagle Idaho- Spring Valley is moving closer to coming on line

Boise Idaho Homes

The second issue that home buyers are going to see is increased costs. With all the increased activity in builders from home buyers recently, suppliers, trades and services are also increasing their prices. For several years, sub-contractors have lowered their prices to the point that they were not profitable but with the momentum in the economy and local increase in demand they are now looking to increase their pricing.

For about a year and half, all the industry professionals and news reports have been saying now is a great time to buy. From the decreased housing values and lot prices to retail stores and sub-contractors offering slighly above cost pricing, it has been a great time to buy, especially with the record low mortgage rates. Now it seems that prices may be on the rise again.

Home Prices Reality Check

If you are buying a home that is already built, it can only sell for market value. Though the builder's cost may go up, they cannot necessarily pass the increased costs along. That being said, if home values go up, they also increase their prices.

LSearch Boise Idaho Home for Sale

 
Posted by tlangford at 4/12/2012 1:19:00 PM
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Samantha Dunn, Idaho Real Estate Agent

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