The Idaho Statesman reports on the fading housing bubble. "The Treasure Valley's housing boom is starting to slow, some housing-industry leaders say. Area industry experts say the runup in prices may not be sustainable now that out-of-state investors are apparently losing interest in the Valley. Nampa real-estate agent George Tallabas said developers can no longer count on having half of the homes in a new subdivision sold before construction has been completed."

"The industry is now having to depend more on local buyers because runaway housing costs and rising interest rates have combined to chase off the out-of-state investors who have been driving the housing boom, he added. 'We're starting to see a definite correction in the market,' Tallabas said."

"Developers are starting to reduce prices because the cost of home is now beyond the income earned by many Idahoans, he said."

"(Mortgage broker) Marianne Wake in Boise, said the number of loans her company issues is falling as high prices keep some homebuyers out of the market. The increase in loan values has offset that decline, she said."

"'We only have to do half as much as we used to because the loans are so big now,' she said. 'It used to be that a $200,000 loan was a big loan. Now it's just average."

"Wake said her confidence in the local market remains high enough that she plans to add five new loan officers. 'We're going to have to make connection with the high-end home buyer, if we're going to survive,' she said."

"Corey Barton, whose company is one of the busiest builders in the Pacific Northwest, said his recent rollback in some prices is attributable to overestimating this year's increase in the cost of building materials."

"'Last year was way over the top,' Barton said. 'So 2005 is not a good year to set the bar. If prices were up 20 percent last year, and are down 10 percent now, you're still ahead.'"

"Barton conceded, however, that his sales were off an estimated 10 percent in the first quarter, which he attributed to 'sticker shock' experienced by consumers. 'If I was going to buy a pair of sneakers that cost $20 last week, and they cost $30 this week, would I still be interested in a buying a pair of shoes?' he asked."