HOUSINGNEWS REPORT
BOISE HOUSING MARKET BURSTING AT THE SEAMS
Even then the cost of either flipping — or buying and holding a rental property — may no longer pencil out to the investor’s advantage as it once did. “I tell my investors they’re marketers first. Otherwise they’re going to sit at home and do nothing,” said Cameron Williams, associate broker with Gold Star Realty and co-organizer of the Boise Investor Group. “On the investors’ side there’s virtually nothing. You pretty much have to pay retail and you have to look for your own deals.” According to numbers provided by ATTOM Data Solutions, Ada County had 52 flipped properties in the first quarter of 2018 while Canyon County had 31 flips — both accounting for 4.3 percent of all home sales. Flips were down 10 percent in Ada County from the same period in 2017, and down 20 percent in Canyon County from a year ago. Average gross home flipping returns in Ada County were down 13 percent from the year earlier to $74,800, and down 35 percent in Canyon County to about $39,000.
ATTOM also reported for the first quarter that total distressed sales (combined REO and third party foreclosure sales) accounted for 9.6 percent of total home sales in the metro area, a 14 percent increase from the same quarter last year — mostly driven by a 34 percent increase in sales to investors at foreclosure auction. “We have some good wholesalers who do well, who might find two to three deals a month. They spend a lot of money on marketing every month. It’s primarily those people who are marketing directly to sellers through Facebook, Google or going direct mail,” said Williams.
With few properties to buy, Williams called it a “frustrating market for investors. If you want true cash- flowing properties you’re not going to get them here.” So instead, cash-rich investors are coming from places like California to purchase properties at much less expensive prices for all cash even if the investment doesn’t pencil out, he noted. Upward Pressure on Rents While smaller rental properties may not be cash flowing well in the Boise market, the rents in larger multi- family unit complexes have gone up tremendously and are continuing to
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“On the investors’ side there’s virtually nothing. You pretty much have to pay retail and you have to look for your own deals.”
CAMERON WILLIAMS CO-ORGANIZER, BOISE INVESTOR GROUP
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JULY 2018 | ATTOM DATA SOLUTIONS
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