A housing bubble report from the Idaho Statesman. "Six months into a nationwide slowdown, the Treasure Valley's runaway residential-housing market finally hit the wall in July, taking a dramatic downward turn, say area builders, real estate agents, mortgage brokers and economists. The July data 'means real trouble,' Boise economist John Church said."

"'There is going to be a reduction in (construction) employment,' said Don Holley, professor of economics at Boise State University. 'And as construction employment goes down, you'll see lost jobs."

"The decline is taking a toll on home sellers, too, to the benefit of some buyers. Nampa real estate agent George Tallabas said the growing inventory, coupled with a dwindling number of qualified buyers, is forcing some sellers to slash asking prices."

"Especially hard hit have been sellers with homes priced over $250,000 and those who need to sell a house before buying a new one, he said. 'Our agents are constantly coming in and saying, 'I've got another price reduction,' Tallabas said."

"Nampa construction seems to be still going strong. But Tallabas said the contracts for those permits were probably written 60 days ago. With 1,033 homes for sale in Nampa alone, the true state of the Canyon County residential market will become evident in the next few months, he added."

"'It's just simple economics,' Tallabas said. 'Contractors have over-supplied the market. And it's going to take more than 30 days to wash all of that out.'"

"The change is most telling in Meridian, where building officials have spent the last year scrambling to keep pace with requests for residential building permits. This July's $17 million in single-family permits was 74 percent below July 2005. 'I think we're going to see a correction; a significant correction,' said Daunte Whitman, city building official."

"Don Hubble, owner of Meridian-based Hubble Homes, blamed rising home prices on exorbitant land prices builders have been forced to pay the last few years. As prices soared, wages failed to keep pace, resulting in many potential homebuyers being priced out of the market, Hubble said. 'So a booming market has taken a dramatic turn,' Hubble said."

"Trey Langford, operator of a Web site that tracks existing and proposed subdivisions in the Valley, said it's gotten so bad some real estate agents with exclusive contracts to market subdivisions have had to go out and look for customers, when a year ago the phone never stopped ringing. 'Some people are getting a little hungry,' he said."

"At The Mortgage Co. in Boise, owner Marianne Wake said some new loans are failing to close because buyers cannot sell their existing homes. 'We've seen enough of that for me to be worried,' she said."

"Wake said the market is struggling because outside investment money has disappeared."

"Those investment dollars aren't likely to reappear anytime soon, said Lisa Vander, CEO of a California real-estate investment firm that has begun warning clients not to sink money into Idaho single-family housing. At those prices, investors cannot get the rents they need to pay their mortgages, she said."

"'The investment doesn't pencil out for a $200,000 home, even with 20 percent down. It won't cash flow,' she said."