We are seeing a lot of cash purchases her in north Idaho....investors have come back with a vengeance.
Problem is, they are paying top dollar for small homes and those wishing to refinance are seeing those values and hope their homes appraise for much more than they are really worth.
We saw this back in the boom years and everyone lost their shirts.
Appraisers are once again being challenged to inflate values by the home owners which will ultimately lead to being upside down once again.
Yep, too much cheap money chasing too few opportunities.
Bubble city.
I was in Coeur d’Alene last week. The condos on the resort course are half of what they sold for in 2004/2005. Granted they were ridiculous in 2005($3 million vs. $1.8 million). I was told the only thing selling in Coeur d’Alene was the houses in the $225-300 range. The lake front $1 million plus was not selling. Neither were the lake view houses for $400-600.