Home sales around the nation dropped 17 percent in December – with existing homes showing the largest monthly drop in 40 years – but that’s nothing compared to what happened in the Treasure Valley.

The number of homes sold in Ada and Canyon counties fell 31.6 percent (from 832 to 569) between November and December 2009, according to numbers from the Intermountain MLS.

New home sales in the area fared worse than existing home sales did, dropping 33.3 percent in Canyon County and a whopping 59.3 percent (falling from 140 to 57) in Ada County.

Ronda Conger, VP of marketing for Boise-based CBH Homes, said the drop was expected for two reasons. First, December isn’t typically a strong month for home sales, with the holidays taking priority over home buying.

And second, the first-time homebuyer tax credit’s extension took away the urgency previously felt. Where the former deadline for purchasing a home and qualifying for the $8,000 tax credit was Nov. 30, Congress in early November extended that deadline through the end of June (though sales documents have to be signed by April).

“Buyers took a big breath and realized it’s not that much of a hurry anymore,” Conger said. “They’re thinking, ‘We can take our time, enjoy our holidays – there’s lots of time to get to April.’”

But what about after April?

One national economist told the Associated Press the report of December’s numbers “places a large question mark over whether the recovery can be sustained when the extended tax credit expires.”

And that seems to be everyone’s concern.

Some economists, such as Jaret Seiberg of Concept Capital in Washington D.C., are even predicting yet another extension of the tax credit.

Last month, Seiberg told the Wall Street Journal Congress could extend the credit through Nov. 30 or phase it out over six to 12 months.

“We believe a phase-out is most likely because it would benefit housing markets but let Democrats argue they are fiscally responsible because they have designed an exit strategy that weans consumers off the subsidy,” he said.

Optimists say job recovery will pick up where the tax credit leaves off.

“The headwind we face is rising mortgage interest rates,” said economist Lawrence Yun of the National Association of Realtors, “but the compensating factors will be the home buyers tax credit in the first half of the year and increased job creation in the second half.”

For so many reasons, let’s hope those jobs materialize.

Renovation of kitchens, bathrooms and room additions will remain at the top of remodeling projects in 2010.

Visitors to the 10^th Annual Idaho Remodeling, Sources & Design Show can visit with over 80 contractors, interior designers, and home and office improvement specialists.  The Idaho Remodeling, Sources & Design Show is scheduled Jan. 30-31 at the Boise Centre on the Grove.

Even with rising interest rates, creative financing packages offered by local financial companies give  Idahoans options for updating kitchens, bathrooms, room additions, exteriors plus energy saving window and skylight additions.   More and more baby boomers and senior citizens are opting for the economies of renovation versus the expenses of selling a home, moving and purchasing a new residence.

The Idaho Remodeling Show is managed and produced by the Idaho Business League Inc., a local business organization, which manages associations and produces professional tradeshows.  Event sponsors include: The Idaho Statesman, KBOI, Idaho Women’s Journal,  AIA and ASID.  Show hours for the Remodeling Show are Saturday, Jan 30 10a.m.-6p.m. and Sunday, Jan 31 10 a.m. – 4 p.m.

For more information or to participate in the seminars or exhibits of the Idaho Remodeling show, call 208-323-4464 or email annamarie@idahobusinessleague.com

With construction projects fewer and further in between these days, Boise State University seems to be pulling more than its share of weight.
Earlier this year the school confirmed a spring start date for construction of the $37 million business and economics building that will serve as a visual gateway to campus, but an even bigger deal is the upcoming housing project.
The 864-bed development, planned at the corner of Lincoln and Beacon streets, will be built starting this summer. It’s about a $55 million undertaking, including future possible phases of the project, and it’s being done in partnership with private developer American Campus Communities of Austin, Texas.
Boise State has been working with ACC on the design of the building, and it will give a long-term ground lease to the developer for the building. ACC is financing the project and will manage the property once it’s completed.
The terms of the ground lease are being negotiated, but a faculty newsletter from June said potential scenarios discussed involve returns of between $300,000 to $429,000 a year on up to 4.3 acres.
This is the first public/private university housing project in the state, and just the second partnership of this particular structure ACC has undertaken (the other is at Arizona State University).
“It’s a really creative approach to a very significant identified need; there is a very significant set of constraints the university is confronting,” said James Maguire, associate vice president of campus planning and facilities for Boise State. “So like with anything new, you learn as you go.”
He said ACC is a well respected player in the university housing arena, and the deal allows the school to limit the amount of debt it incurs with its ambitious academic and residential building agenda.
Maguire estimated that Boise State will eventually need 3,000 to 6,000 more beds on campus in addition to the 2,200 it has now.
He said students living on campus have higher academic success rates than those living off campus.
If all goes according to plan, the project will receive its final blessing from the state board of education in April, and construction will come soon thereafter.
The building was designed by Oz Architecture of Boulder, Colo., and it will be built by Petra Inc. of Meridian.
The project, which has not yet been named, will be brick, like most of the campus’s buildings.
It will feature precast, stucco or metal panels as accents.
Maguire said it will “have its own sense about it,” but still look like it’s part of the university.
The site currently hosts a vacant lot as well as a few housing units that will be removed. The university started purchasing the land in the mid-1990’s as properties came up for sale.
The 864-bed development will be divided into 225 units, including residence halls, townhomes and apartments. Gross square footage of the project is 323,000.
Jason Wills, senior vice president of development for ACC, said the project will transform the Beacon area of campus.
“It’s going to take an area where on one part of Beacon, you feel like you’re on campus and on another part, you don’t, and transform it, strengthen it, and give it a collegiate feel as you drive into campus on Lincoln Street,” he said. “I think it will be really transformative for the Boise State residential experience.”
Potential future phases of this project would bring the community’s total bed count up to 1,200 to 1,300.