Can you feel it? The stress in the machine is growing. It’s been a very strong month for us at Copperwest, but the inside of the “machine” our ability to access loans for our clients, appears to be straining.
In a couple of transactions this last month, the underwriting has become tougher, and tougher and tougher.
Not the usual difficulty, mind you (one of my favorite things to harp on, on this blog) but really surreal type behavior, almost like doing a short sale, where everyone is new, and no one really knows where the file is…..
Multiple requests for the same document are happening (like short sale departments that are understaffed and disorganized) submission are being lost, phone calls not returned, and there are now long, long unanswered wait times for documents.
Toss a heightened scrutiny into the mix, and what appear to be recent new hires…..you get the picture.
In Hood River Real Estate, the inventory continues to be weak, though inventory months still seem high. (That’s mostly a commentary on the quality of what’s on the marketplace)
Same issues as last month, only slightly more acute, as buyers continue to show up, and there is nothing to buy.
The “gap’ is beginning to re-emerge, where the seller’s opinions about their property are beginning to inflate, but the buyers are pushing the “recession era” pricing model (albeit with a 3.75 fixed, 30 year rate) except that now they are shoulder to shoulder with other buyers. It’s setting up for an interesting August September push, that’s for sure, probably like last year (which was strong). Like a Real Estate game of chicken. Buyers win still, sellers……don’t forget it.
Oh yeah, but then they have to qualify for a loan…..
Economy wise in Hood River and the Columbia River Gorge, we continue to move along the long bottom. More solidly so at the moment, but some sectors (construction) remain soft.
Our tourism season has been decent, but there has been a lot of new competition on the hospitality side of things. Last month I think I wrote about the other shoe, and it being different than the impending sense of doom from a few years ago. That remains the case here. Economy is Ok, but open to external shocks. Everyone seems to be enjoying the Summer, regardless, most likely awaiting the fall, and the silly season of the general election….Wait for it……only 60+- more days until the action begins anew…..
Or mid July, when Greece runs out of money! Hang in there everyone, See you next month….