Friday, December 02, 2005

California RE Locusts Descend on Idaho

It seems that Californians are not satisfied with having destroyed their own state; now they are plaguing Idaho; like locusts, California speculative buyers are relentlessly driving down affordability in other states. [In all fairness, it's not just Californians and not just Idaho, the same could be said for other states too.]

Californians are buying Idaho property "over the Internet and sight unseen". Buying "sight unseen" is not new as it's been going on since at least 2003 here in California, Florida, the East Coast all of which are left with having to contend with its aftermath. But with statements like that how can people actually claim that there is no speculative housing bubble?

Some choice quotes:
"Property investors from California and other states are snapping up homes in Boise, Meridian and Eagle over the Internet and sight unseen."

"Boise city planning director Hal Simmons said he talks to real estate agents and developers who have seen "busloads" of investors from out of state come through the Valley and pick up properties."

"Local buyer's real estate agent Lynn Sturgeon said about 80 percent of her business is conducted over the Internet with people living out of state. Buyers find her on the Internet."

"Tony Shaberman, a 35-year-old engineer from California, decided traditional stock-market investing was far too risky. And he said home prices in California made it impossible for him to invest in rentals there."

"The run-up also can mean higher home costs for people looking for homes and higher property taxes on inflated home values."

"[Local] residents looking for a place to live may be priced out of the housing market or get into bidding wars with investors with more money."

"People who live next to homes that become investment rentals can find themselves with transitory neighbors and, possibly, lost potential value if properties held by absentee owners aren't kept up."

""The local guy is having to participate in the bidding to even move across town," she said."

"Treasure Valley real estate agents say they have local clients who can barely afford escalating home prices. Rising home prices should be a concern, said Simmons, the Boise planner."

""I am sure anybody who thinks about it is worried about affordability and the ability of first-time buyers to get in the market," Simmons said."

3 Comments:

Anonymous Anonymous said...

I'm curious. With all these people buying homes without knowing the first thing about them, would we eventually see squatting becoming increasingly common.

Dec 2, 2005, 12:26:00 PM  
Blogger marin_explorer said...

Personally, I wouldn't want to own an "investment property" so remotely if Boise locals perceive I've helped drive up their housing costs. There might be a backlash, and unforeseen maintenance.

Perhaps we should lure the locust investors to a remote corner of Nevada and drop a "daisy-cutter" on them?

Dec 2, 2005, 2:36:00 PM  
Blogger Marinite said...

reskeptic,

Even closer to home you are not any safer. I've heard of the resentment those new "French home" buyers out in San Geronimo have to face from long-time residents of the area. Then there is that horrendous golf course...

Dec 2, 2005, 4:21:00 PM  

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