Well, what can we say about this last month? After all is said and done, we are busy, and things seem to be moving again. I’m really grateful for that. The economy is still in strain, but last year it was so focused on the post first timer credit, that, well, we all just basically melted. Everyone was concentrating on how BAD Real Estate was, that we just had a season of being the poster children of “lame jobs for the new century” Thank goodness that’s past.
This year, the action is all overseas with the potential for Greek default. In our little bubble, what we are seeing is a fair number of buyers out in the marketplace, but a very difficult time obtaining financing because of low appraisals, primarily due to Sellers, in some instances, running towards the buyers. This has, unfortunately, caused this sort of negative feedback loop. Strict underwriting has caused sale prices to be lower, has cause more appraisals to come in low, has, caused……well, you get the picture.
Further complicating the picture is the potential fallout of an event like Greece’s default. To me, that means tougher credit, but to some, that means a flight to the safety of the US dollar…..Love that one. Money pouring in, Banks still too scared to lend. I bet there will be a bifurcation of that credit access too. If you have GREAT scores, you’ll get faster, easier underwriting and a better rate. If not, you’ll get….nothing. I hate to say something as simplistic as the rich get richer, but It’s there, it real, and it’s happening right now.
In a bright spot amidst the carnage, one of our group projects that we help out on, managed to get past a huge milestone. I can see a double digit number of jobs moving to Hood River from that project alone.
I bet there’s going to be some firming driven by demand by new arrivals to Hood River in the future because of the surprising well of entrepreneurialism around here….. (AND, you can already buy cash-flowing rentals in Hood River as well, so there’s that, too)
On the retail front, we have all had a steady, not stellar, first half. Costs are high, but people are coping. We are also having a tough time finding good talent. Imagine that. All this woe in the national unemployment scene, Hood River, with an 8% unemployment rate, and we can’t find a good line cook.
It all leaves my head spinning, really. I’ve got some big, big worries about larger economic issues, but right now, in Hood River, in our areas….I’ve got to say, it’s a pretty decent time to be in the market. That could change tomorrow, mind you, but I have to say (With a wry smile) that its ok to jump in the pool…
Armageddon or salvation seems to always be just past our 30 day window. An answer that “auto magically” (my new favorite word) seems to adjust, and always be out of reach. Like the carrot dangling on the end of a stick, we’ll put on foot in front of another until we get there, eh?
See you all next month.