Recent reports from the Multiple Listing Service (MLS) show about 8,000 unsold homes on the market in the Valley and many in the real estate industry say the backlog will translate into lower sales prices.
That inventory increased from about 1,700 in January. Houses simply are not selling.
The Daily Paper did a business piece which revealed that more than 60% of homes built were “spec homes,” or built without a buyer at the time of construction. That detracts from the mantra so often repeated, “People want to come here and they need a place to live.
More truthful is, “We have lots of places to live, now we need people to move here.”
The bubble actually burst last summer according to bankers we have talked to.
The real problem with the slump in real estate prices–and they will decline–is local property tax assessments will go down.
That may sound like good news to some, but when the values go down, the levy RATE (percentage) will go up to provide services demanded by the newcomers…schools, sewers, police, fire, etc.
When tax notices come out in the next month there will be quite a few increases because the assessments were based on prices over the past year, not just the past few months.
In Ada County the increases are as high as 20% or more in some areas.
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