2019 Boise Idaho Real Estate Blog

How are Boise Idaho developers doing Main Idaho Real Estate Insights

Just based on the number of communities selling new homes, you would think well but if we dig into the numbers, developers are probably not doing well.

Developing a subdivision is a numbers game. The object is to sell lots not only for the highest price but also as quckly as possible. Developers have a business plan called lot absorption rate which mean how many they intend to sell per month.

This month's Top Subdivsions report shows that most of the subdivisionss sold 2 or less. If you were a developer, two sales is not very many. While we don't know the cost of lots as many may have been purchased 2 years ago at a price well below cost, there are still carrying costs.

How will the market change as these new communities come online and compete for sales? It is hard to say. There is still plenty of demand for building lots but with the additional inventory, we may see prices lower as developers compete to sell lots.

 
Posted by tlangford at 11/21/2013 2:39:00 PM
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Michelle Penick, Build Idaho Client Real Estate Services

Michelle Penick

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