Just recieved this information from one of my mortgage brokers.  Found it to be what I had expected, in that, most prospective clients have indicated they are not sure they would be able to qualify for financing. Until those who are interested check with a mortgage professional, they will be passing on some of the best property prices in years.  I have always felt that tangible assets are best to aquire during a downturn in markets.

Just watch the large commercial projects going up in your community and you will see what the smart money is doing in times of excess supply and low prices.

According to the survey, which included about 1,500 respondents, 70 percent of non-homeowners have no plans to purchase a home in the next 12 months and nearly half in the 18 to 34 age group say the reason is because it's too costly. While those in the 35 to 44 age group are concerned that they might not be able to qualify for a home loan. The survey also found that only 12 percent of the non-homeowner respondents said they expect to buy a home in the next 12 months.

When has it been more affordable???

Rates are below 6%

Home Prices are low

There are still programs...  - just to name a few    - As of 21 November, 2008, rates may change.

•-      FHA 97% financing with seller paying up to 6% of the sales price towards buyers closing costs.  Rates under 6%

•-       RD - 100 % financing with seller paying all closing costs.  - rates under 6%

•-       VA - 100 % financing with seller paying all closing costs.  - rates under 6%

Secluded Building Site w/292' on Water Front- Shoshone, Idaho

 The special property many are looking for is located at the end of the road (for seclusion), next to public lands (for recreation and privacy), backs up to a year around running river (for fishing, boating, swimming, and the sounds of rushing water from a water fall). It would have close proximity to shopping and schools with enough acreage to handle the horse(s) and all the recreational toys.
 Added to all the above it would be within short driving distance to winter skiing and summer camping, fishing and boating. Finally, it would have an unimpeded view of the Sawtooth Mountains from the front window.
 You would be able to build your own dream home with CC&R's which will keep your neighbors up the road from trashing up the neighborhood.
 Check out the virtual tour link:  http://www.southernidahorealestate.com/98363291/98363291.html
 By the way, turn up the sound for the sounds of the river!

Contact:  Chuck Lassen, Realtor
              Canyonside Irwin Realty, Inc.
              Ph: (208)420-9223
              Email: Chuck

Earth to Washington: "We Have a Problem"    I read yesterday in a Bloomberg report, the financial institutions could have up to $1 Trillion in write-downs in the near future. Do you realize how much that represents? If you expect the taxpayer to bail these institutions out, how may years will it take and how high will our taxes be to pay for this $1 Trillion bailout?    Then I read that our President and Congress intend to give the Federal Reserve more power to control the financial institutions. Question? Just who is the Federal Reserve accountable too? I would bet that most of the readers of this blog cannot answer that question. The answer is NOT the Government (people) of the United States.    Some will say; "The President nominates the Chairman of the Federal Reserve as in Ben Bernanke. What that did not say is that the choice of who the President nominates is based on who the Board of Governors choose to send up to the President. In other words, the Federal Reserve chooses it's own Chairman, then the President and Senate approve their nomination.    Now on top of the above, I read the new financial system will be based on some Scandinavian or Norwegian program, "Hello"? Are not Norway, Sweden, Finland and Denmark predominantly Socialist? Bet you cannot find that article in the major media this morning! By the way, "Socialism" has not worked in any Nation in the past, so what makes them think Socialism will work in the United State of America?    Washington will not deal with the problem but playing the ethanol game has and will continue to drive this Nation into the bottomless pit. Relying on foreign enemies to supply the necessary oil to fill fuel the economy will continue the down fall.    What to do? Having spent some years in the securities markets, hard asset markets, financial markets and finally the real estate market, I have concluded the following: 1. The dollar will continue to fall as the leaders will be unwilling to deal with the problem. Putting the Fed in a stronger position will only exaggerate the problem with the dollar. Remember all they want is control and they are getting it without strings attached. 2. I have yet to see a weather report being accurate over a couple of days, just how can they predict the weather 1 year, 5 years, 10 years or 20 years in the future? The "Global Warming Group" is just another way for the elite to control the masses. Once again I believe that to be Socialism. 3. Since 1990 I have watched the "hard asset" markets and still cannot justify the movements of gold, silver and platinum. The only answer for the movements up or down would have to be controlled (unproven) through manipulation. When gold should be at an all time high it drops $50 - $75 per ounce. 4. Dependent upon your current financial position: a. Real Estate investors who are over their head with dropping values and increasing payments should SELL before the price drops further. b. Investors with extra cash, looking for a hedge against inflation should BUY LOW, finance low and do your home- work in the area. Know the employment outlook, rental rates, and vacancy rates. c. Investors with large amount of cash looking for long term investment should look to Farms and Ranch properties. Once again do your home-work! Midwest farms are getting record prices per acre. I do not for see the leaders of this Nation dealing with the fuel problem other than throwing tax dollars at the ethanol program. This will raise the price of farm produce which will cause the price of farm acres to increase. We are entering into some extreme times and it is time to make extreme decisions for our future survival.

Investment Opportunity for the Traders, Analysts and Investment Bankers Located 38 miles from the "World Famous" Sun Valley - Skiing 10 miles from Silver Creek - "World Class" Fly Trout Fishing Right next to the Pioneer Mountain Range - Elk, Deer, Moose, Antelope and Bear. Upland Bird Hunting - Chukar, Quail, Duck, Goose, Dove and Pheasant. All this with a working cattle/horse ranching operation and you have the complete package. We also have pocket listings which border the Bar B Ranch - Guest Ranch with 9000 square foot lodge which sleeps 20 and kitchen facility which can feed up to 300. Additional 1800 acres of grazing and private hunting. Click here for more information Call (208) 420-9223 for additional information.

Southern Idaho is turning the corner in the area of alternative energy production as will be shown below.
As in other parts of the West, growth is stretching the current electrical and fossil fuel requirements. The Idaho State Legislature passed the Energy Policy Act of 2005 which is starting to manifest itself with some of the projects listed below.
The effect on Southern Idaho (Twin Falls, Burley and Jerome) is beginning to be felt in the area of commercial and industrial facilities being sought by respective developers and industrial contractors coming into the area.

Examples include:

1. Sierra Pacific Resources and Renewable Energy are currently working on an agreement to develop more than 200 megawatts of electricity with large Wind Turbines.
2. Three major Geothermal Electrical generation plants are being investigated or in production. The Raft River project is said to be currently producing electricity. The China Cap and Willow Springs in Caribou County are projected to produce 100 megawatts of electricity each.
3. Direct-use geothermal applications are also being replicated throughout Idaho, with proposed projects including the installation of additional geothermal greenhouse acreage, the expansion of district heating systems, and the promotion of geothermal heat pumps. The thermal potential for direct use in Idaho has been estimated by the United States Geological Survey at 2,758 MWt (megawatts thermal).
4. Using agriculture products as feedstock, four new ethanol plants have the potential to create 1,900 permanent new jobs, $58 million in household income and $11.3 million in new tax revenues for the state's economy, according to the Idaho Energy Division.
5. MidAmerican Nuclear Energy Co., a subsidiary of the Des Moines, Iowa-based MidAmerican Energy Holdings Co., has been doing geologic testing on about 3,300 acres of private land south of Paddock Valley Reservoir. This is the second proposal for a nuclear power plant in Idaho in less than a year. The first has been proposed on farmland in Owyhee County near Bruneau by a small startup company founded by a former nuclear industry executive.
6. Diversified Fuels expects to create a market for 250,000 acres worth of locally grown canola by the time their proposed seed processing/biodiesel facility is running at capacity, producing 40 million gallons of biodiesel in Buhl alone.

With all the proposed and active projects in the Southern Idaho area, the future looks bright for commercial and industrial facilities. Currently there is a shortage of warehouse and office space in the Twin Falls area. When the above mentioned projects start, the shortage will be even greater.

For more detailed information click on link in the right column above.

Our market analysis for the Southern Idaho Real Estate Market through September of 2007 has been completed. As anticipated Southern Idaho real estate market is much more stable than other parts of the country which experienced such high appreciation during the past years. You will note on the link below that the "Average % of Asking Price for all Homes by County" has remained in the high 97 to 98% except for Jerome County. The "Total Number of Homes Sold by County" has taken a hit as with other parts of the country. Considering the numbers other parts of the country are experiencing we will take them as they stand. This is why people are moving to Idaho in the first place. The "Average Sold Price" and "Median Sold Price" remain higher in all counties except for Gooding County. Finally, the "Average Days on Market" has increased substantially during the 2007 year to date figures. Click here for Link to Report
We are seeing farm land prices in the Southern Idaho counties starting to creep up dependent upon the area and the type of irrigated system being used. Currently the prices are ranging from $3500.00/acre to $5000.00/acre for good farm ground. It is projected to be in the $4500.00 to $6000.00 per acre range by next year.

OFHEO Steps Towards Alleviating the Credit Crunch and Improving The Housing Market

By giving Fannie Mae and Freddie Mac more flexibility to address problems in the mortgage market it will benefit the housing market. In providing the ability to make a two percent adjustment to the portfolio limit formula for Fannie Mae, like Freddie Mac currently has, OFHEO has provided another tool to help borrowers with more sub-prime loans and others having problems refinancing their mortgage. We are seeing that it is becoming a better time to buy a home. With both houses of Congress to reform FHA programs, and the Federal Reserve to decrease interest rates, should make borrowing more affordable and money more available. With reduced housing prices and increased housing inventory, interest rates that are near historic lows, and now with Fannie's and Freddie's increased ability to lend, we may see positive movement in the housing market.

As a Realtor® with a background in market analysis for a large corporation, I find the Southern Idaho real estate market very intriguing. The influx of out-of-State buyers has caused the price of homes to appreciate substantially over the past 6 to 7 years and the farming market has really taken off during the last couple of years. The farm market has been effected by the crop markets being adjusted via dairy and green fuel production through-out the farming industry. This competition for the crop production by dairy and green fuel effects all facets of the farm, whether it be alfalfa, corn, beans, potatoes or wheat products. There are only so many acres available for production. Example: ( Alfalfa hay can be purchased today at $110/ton for first cutting, $120/ton for second cutting of hay) The recent announcement by Diversified Fuels to build a processing plant in the Buhl, Idaho area: "Diversified Fuels expects to create a market for 250,000 acres worth of locally grown canola by the time their proposed seed processing/bio diesel facility is running at capacity, producing 40 million gallons of bio diesel in Buhl alone." You may view examples of area acreages by clicking on the following link: (Tours)