Boise is number 1 most overvalued

[pnwguy2]

Originally Posted by forzalugano

CBH Homes laying off close to half its staff.



https://amp.idahostatesman.com/news/...268305132.html

The Idaho real estate market is not collapsing. A better term is “slowing”. Big difference. Real estate is slowing everywhere. Ebb and Flow. I get so tired of these excited doom predictions.

[IdahoBroker]

Originally Posted by forzalugano

CBH Homes laying off close to half its staff.
https://amp.idahostatesman.com/news/...268305132.html

Keep in mind that many local builders like CBH couldn't build homes fast enough for years. They quit taking orders for homes and built homes on 100% speculation (spec homes) so they could control pricing and pivot during supply chain issues. They typically waited till the home was roughly 30 days from completion before ever even pricing them and putting them up for sale and they sold in hours or days.

CBH used to be Idaho's largest volume builder. One day Corey woke up and realized he was #2 because Toll Brothers came in as a national builder and bought one of his competitors. Now we have multiple national builders here (KB Homes, DR Horton, Lennar, Richmond American, Shea Homes, etc.).

As we go into the slower winter home selling season, most builders even in a great market have seasonal layoffs. The doubling of mortgage interest rates just magnified the layoffs. When farmers are done harvesting and preparing their fields for the next crops; they layoff many seasonal workers. That doesn't mean the farmers are going bankrupt, they are just right sizing their business so they stay in business.

Hope this helps.

[pnwguy2]

Originally Posted by IdahoBroker

Keep in mind that many local builders like CBH couldn't build homes fast enough for years. They quit taking orders for homes and built homes on 100% speculation (spec homes) so they could control pricing and pivot during supply chain issues. They typically waited till the home was roughly 30 days from completion before ever even pricing them and putting them up for sale and they sold in hours or days.

CBH used to be Idaho's largest volume builder. One day Corey woke up and realized he was #2 because Toll Brothers came in as a national builder and bought one of his competitors. Now we have multiple national builders here (KB Homes, DR Horton, Lennar, Richmond American, Shea Homes, etc.).

As we go into the slower winter home selling season, most builders even in a great market have seasonal layoffs. The doubling of mortgage interest rates just magnified the layoffs. When farmers are done harvesting and preparing their fields for the next crops; they layoff many seasonal workers. That doesn't mean the farmers are going bankrupt, they are just right sizing their business so they stay in business.

Hope this helps.

Again ebb and flow. Rarely do markets remain hot for more than a half decade. Yes there are some exceptions but most real estate markets that are hot, eventually slow. Historically this happens just about everywhere.