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Why are all the good building lots taken?

Main Idaho Real Estate Insights

As you are shopping for homesites, you may be wondering if there are any affordable lots avaialble for purchase. The answer is "NO!"

Idaho New Construction & Building LotsSorry, but as just before the real estate market returned builders that had the financial means, started buying lots. They took the best that was available at less then what it would cost to develop raw land into a lot. As the market returned other builders scrambled to take anything that was available. Today, more builders want to get back to business but like you, there is not much to choose from unless you are in the upper end home values.

Deisrable lots would be in a desirable community, have the right dimensions and most importantly be priced right. One of the hurdles builder must get over is that if they buy a lot and it is priced $10k to $20 more than the competitor paid, how do they build a home to compete at their price point. It is not easy.

If you, as a home buyer are shopping for a lot to bring your own builder or be your own contractor, it is very difficult to find something that pencils out. You are competing against other builders and in this market, many builders are competing against you. Additionally, while your money is green, you reporesent one sale, where as a builder could represent multiple purchases.

Even with new communities coming to market, increasing supply, don't expect prices to drop. The demand for new homes is strong and there is no reason to think that Boise, Idaho is going to lose traction as many people are chosding the area to call home.

Don't let us be downers, there are lots but they are in less desirable communities and possibly further away from Boise or nearby towns. And you can still find a deal, just do your due diligence and understand your risk. For example, if you find a building lot that is 'cheap' how long until the market catches up to you? How long will you have to live there until others start moving in as well? Of course, maybe you will be the first one and others will follow.We always say that activity bredds activity and it is very true in real estate.

Trey Langford

Posted by tlangford at 10/24/2013 1:17:00 AM

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