Market Update Newsletter

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2nd Quarter 2006 Edition

What an exciting time to be involved with Real Estate! Idaho is enjoying almost unprecedented growth and prosperity and those who have invested in real estate in the last several years have almost had to search to find property that has not increased in value. Will the good times continue? Obviously only time will tell. What can be safely said is that buying right or selling for a price that meets your goals can still be done.

130 years ago, access to the railroad defined growth. Now, quality of life is the key for development. Idaho has the quality of life that will continue to make it a desirable place to work, play, and raise a family. Close access to rafting, skiing, hunting, fishing, biking, hiking, and many other recreational activities make Idaho a truly great place to live. There are times when our weather allows for some odd combinations. This April it was possible to snow ski in the morning and work in your yard in the afternoon.

Development

According to recent US Census data, Canyon County is one of the 100 fastest growing counties in the United States. Developers are still moving properties very quickly and it is almost a wasted effort to list houses in print advertising because the house is rarely on the market by the time the magazine hits the street. Access to services is the main driving factor on pricing land.

The prospects with a better opportunity for good return may be the properties that will go county subdivision with its own water and sewer system or larger, estate lots, with individual well and septic. The risks away from the municipalities are many; aquifers with nitrate issues, availability of lot splits, dairies, etc, but the potential returns are also significant. Many homeowners have benefited from the recent increase in value. The midrange buyer of two years ago may be looking for the acreage today. The buyer wanting out of the subdivision has put a lot of pressure on the supply of rural acreages. This demand presents great opportunities for county subdivisions.

The County and Municipality's attitude towards growth has many variables. Proximity to the cities, areas of impact, scenic areas, services, and transportation are some of the factors that affect whether or not a project will or will not be approved. When looking at a project, the less the project changes the surrounding area, generally the higher the chance for approval. With that said, it is sometimes the case that no easy explanation exists why a project was approved or denied.

Commercial/Retail

There are currently significant vacancies for commercial and retail space in Canyon County. At the same time the addition of the large Costco and Sam's Club hubs bring new optimism and potential for the West side of the Treasure Valley. The boom of residential development has brought more people into the area and the corresponding demand for commercial property. The growth of population is pushing the need for retail and commercial at the same time and tremendous opportunities still exist.

Farm

Finding farm ground in Canyon County at farm prices is a difficult challenge. The growth in development has made a great deal of the farm ground potential development ground with prices to match. If farm ground is truly your need, it is imperative that you expand your horizons and look at some of the outlying areas. Some of the best values may be in Oregon or to the Northwest down the Snake River. Almost all farm ground is currently viewed through the developer's lens.

Ranch

The last several years have been good times for the cow/calf producer. The cattle market has remained relatively strong and the short calf numbers combined with the Canadian Border disruption have left the ranchers in the driver's seat. At the same time water rights and the recreational opportunities of ranches continue to increase. Similar to the change in value of farm ground in developing areas, the scenic, water, and recreational value may outweigh the value the ranch has to produce calves. The concept of highest and best use has never been more important. Some of the best investments are investors who see a different use for an existing piece of property.

In turbulent times, there can be great opportunities. Dad and I look forward to helping you with your Real Estate needs and please feel free to contact us via the Web or telephone.