Another solid couple of months in Hood River Real Estate, and changes are headed our way….
While inventory is down (waaaay down) the volume of deals seems to have pulled back (traditional for this time of year) keeping the months of inventory looking acceptable when in reality it’s really tight. The trends all seem similar to years past, but the one number that seems to be lagging is months of inventory.
At 7.3 months, while still in the range of a reasonable amount of inventory, that is the lowest it has been in a long time. More than four years have passed since we’ve been in that range. At the worst part of the downturn, we were at 24 months of inventory. Oh, I wish we could revisit those days!
This tightness, however, now portends a jump in prices – if interest rates remain steady and don’t do something odd. (They are easing at the moment)
The average price appears to have jumped in October but looking at the data, my impression is we’ve just flat run out of entry level homes. The Hope neighborhood is down to their last unit and after that, we should see the prices in that range begin to solidify and creep up. There was a fair amount of activity up above $300,000 these last few months, pulling the average home price up to $241,000 up from $221,000 a year ago. I would expect that you will start seeing starter homes in HR get up over $250,000 in the coming year.
I feel that 2014 will be inventory constrained in Hood River and that the struggles with lending will continue from an underwriting standpoint, but the appraisal issues (with our narrow market) will ease.
Our entire economy seems to be doing well in this late 2013. Both relative to the country, and relative to our perception of our selves. Now comes the hibernation, traditional… and then the renewal of spring.
I’ve got a large list of Buyers. Everyone is motivated, but no one wants to be the person who jumps out there and starts bidding prices up (but that might be inevitable).
See you next year!
~ Maui Meyer
You must be logged in to post a comment.