Rural Shock, Jumbo Caps and the three words you want to hear………
Yes, things are very fluid at the end of October, 2008. Some would say historic.
While the internet allows us a front row seat to the carnage, there is a pretty sever disconnect down on the street level. Even among the “injured” class, people just see a weekend visit to Rural Oregon as a nice treat.
Traffic, at least, has been strong in Hood River Real Estate, and the weather has been a dream. People are shocked when they come into the office to look at prices, shocked they are holding up so well.
….Which isn’t to say that they are, entirely. There has been a pretty orderly mark-down of properties in the last 45 days, and I expect there will be downside pressure into the Spring. The question is who can hold out that long.
Inventory keeps dropping, and that’s a worrisome sign for me…..mostly it portends a tough, thin market in the spring. I’m still saying to my clients…”If you like it buy it!” but at 6.5%, well, that’s a tough rate to swallow…………
On top of that, the Jumbo Cap is only $417,000 right now. Anything over that, and the cost of your loan skyrockets (think 7%), assuming you could even get it. That will put a damper on properties in the “aspirational affluent” category…….over $750,000.
That makes the following three words music to a transaction………….
Owner. Will. Carry
See you next month. Next up, Credit Cards!