2022 Boise Idaho Real Estate Blog

A Note About Buying Land During A Downturn

Main Treasure Valley Life

Normally, economic downturns are not helpful for real estate. This current recession that was brought about by the Coronavirus outbreak has bucked that trend. Real estate is hot, and that includes land.

Buying land is a solid investment, no matter if the economy is good or bad. What makes land so great is that it is a tangible asset that can easily be turned into a liquid asset. These returns are further increased when land is bought during an economic downturn. Large tracts of land can be sold to developers, which produces a very high return on investment. Here is a breakdown from the National Association of Home Builders:

“When the index is over 50, homebuilders see a bright future for real estate. Under 50 means they are pessimistic. Nationally, the index went from 72 in March 2020, down to 30 in April 2020, a record one-month drop. It has found its way back to 72 in just three months. On the West Coast, the swing was even more dramatic: 79 in March 2020, 32 in April 2020, and at 80 in July.”

Overall, when home builders see an optimistic future, they gobble up land and turn that land into new houses. This is taking shape across Boise and the Treasure Valley as people flock to Idaho from across the country. This has led to increased land and home values.

Even if you are not a real estate investor, buying land to build a house proves solid returns as equity. Many new, high-end subdivisions in the Boise area sell lots which are used to build brand new custom homes. Since Idaho homeowners led the nation in equity gains in 2019, just owning a home or building a custom home has given large, free equity gains. As home prices across the valley rise, it adds to the equity of all homeowners in the subdivision. It’s proof that the rising tide raises all ships. Even just owning a plot of land before you build your home on it provides immediate ROI.

If you have an opportunity to buy land in the current real estate environment, act now. With how quickly everything is selling, the opportunity will vanish quickly.

Click here to see building lots for sale. This includes building lots and large tracts of land.

Here is a link to search for luxury homes based on lifestyle needs and amenities.

Posted by AndrewS at 9/9/2020 3:34:00 AM

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