BOISE -The outlook is grim.

New home sales are down more than 11 percent. Homeowners are having trouble getting loans and credit to buy new homes. So why do developers continue building?

"The house was completely bare it had nasty siding on it," said Seth Rynearson, a Boise homeowner.

Rynearson bought his home on Sherman Road three years ago in hopes of flipping it and making some money.

"It's my passion, it's what I love to do," he said.

He put in new windows, siding, a stone walkway, landscaping, and that's just on the outside. But $100,000 later, he can't get any buyers.

"There are so many houses out there on the market, so many foreclosures, so many short sales," said Rynearson.

For sale signs such as Rynearson's - they're a familiar sight around town. So why would one developer want to build more than two dozen houses just up his street?

Mark Boyer, partner with The Willits Group, is planning to build 27 homes on about 10 acres.

Boyer is planning to build those homes off Sherman Road, near the foothills, but he says they're not ready to break ground just yet. Why?

"We have an over supply of houses, an over supply of lots that are out there," he said.

Boyer's group doesn't have any projects going up right now, but a number of other developers do. In fact Boise planning officials say their projected conditional use permit applications for this year are down only 5 percent from the last five years.

"I think some of the developers have existing pre-sales that they believe are going to come through at the end of the day," said Boyer.

Boyer says other developers may have secured financing before the credit crunch. But he believes one thing is for sure:

"Boise is going to grow, it will grow again and it will continue to get larger and more diverse."

Rynearson just hopes that correction happens before he loses anymore.

Boise officials say their job is to approve or deny applications regardless of market trends.

"Our job is to ensure that when a developer comes to us that those plans fit into the perimeters of existing codes and ordinances," said Jerry Todd, spokesman for Boise's Planning and Zoning department.

Right now, new homes in Ada County are on the market an average of 108 days, which is up from 61 days last year.