… here we go…. Check out this article in the Oregonian. Heard that recently on this Blog? You know it’s bubbling when it hits the black and white………..
Baby Boomers Retiring to the Country……Especially quiet towns ringing the Metro area of Portland…….
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Overall, Hood River Real Estate has been pretty good this month. Lots of deal action, but loooower prices.
Last year, in the fall, Sellers attempted to hold onto their prices, and managed to do a pretty good job of it. This year? Different story. Sellers have capitulated, and are selling at some steep discounts. That makes it tough for those left in the market trying to sell, but it makes the Buyers very happy.
Of course, that hangover will be lasting for a long, long time, as appraisals will become tougher with this seasonal dip. I’m certain appraisers can factor in distress sales, but a number of these sales are not distress sales, they are open, free market sales, and that’s going to hurt…..
HERA and HVCC continue to be slightly problematic, but more problematic are the new bankers dealing with mortgage. Now we are returning to the old “bankers” model; you have to prove you don’t need a loan to get a loan…….
Investments are pricing at cashflow again, I’m guessing closer to 8-12%. Thankfully. Lending, however, is all but impossible. These days, its all about owner financing.
Still with all of this, it’s been a good month, and October looks strong and so does November. That leaves only one month after that to get past 2009……….
Long term forecast for the Hood River market will be flat, at best, with pockets of calamity, and a few wipeouts. Mostly, though, people seem to be keeping it together, and most of all, working together to figure things out…..All in all, survivable.
Thanks for reading! see you next month!
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Overall this month has seen a good uptick in volume, but a decrease in prices. How’s that you say?
Lots of discounted offers, and lots of deal making and negotiating. How these impact comparable sales can be devastating. Look for troubling signs out in Fox Hollow, and Country club, as appraisers attempt to swallow recent sales that are 20, and 30% below the asking prices. Other markets are marking to more traditional prices as sellers finally come back to earth in Hood River.
As prices grind lower, however, more and more buyers are showing up. The first wave and, (in my opinion) the best deals have come and gone. If this does prove to be a bottom, July and August will be the floor. Remember about a year ago when I was talking about toxic events? I think I can say that barring another toxic event, the structural instability in residential is all priced in at this point. It’s only the bleeding that’s caused by long term unemployment that’s left, and that tends to come out slowly, and over time.
I hear in Florida, Nevada and California, there’s booming business in “foreclosure tours” but not here. Here, each deal is a one off, each motivation, unique. Neighbor to neighbor, house to house, block by block and marriage by marriage, it’s all playing out on a very small, and very personal scale. This is the downside of hyper-local.
September is loading up, Hoping October will be strong as well. It’s been a long spring and Summer in Hood River Real Estate, see you out here soon!