Another decent month around here. Everyone’s moving and the phone is ringing. We really are seeing inventories get tighter, and tighter. Prices aren’t rising, mostly due to the fresh batch of foreclosures that are washing through the market.
There was a recent article written about this topic, I call it the “low-low” (for you Hawaiians out there, a “lolo”) market issue. It’s quite possible that it will go on for a fairly long time. Low prices, because of so much foreclosure inventory, and low inventory, because so many people are pinned in the world of the underwater lockdown.
….At least it isn’t a death spiral, it’s more of a flat spin….how that works out over time is…..very slowly. Foreclosures wane, inventory is tight, a few people bid, and the appraisers start working the values up….there’s a pathway, but it’s a long one.
You’ll see it later this summer, but it wont probably feel normal until spring/summer of 2013…..rates depending, of course.
Because inventory is so spotty and tight, we are doing a lot of sourcing of properties these days, digging up old listings, calling on past clients who might want to move, etc. It’s proving to be a reasonable way to get deals put together.
I went and looked at our markets total deal count for the first month and some, and….it’s low. That, and the buyer pressure seems to validate the “low-low” scenario.
Mosier is showing signs of life, as well the West side of Hood River. The state has just agreed to fund the Exit 62 upgrades, which should just make the West side really start working again. New industrial, commercial and residential, still relatively compressed around the commercial strip in HR. That’s great news.
So, the outlook is flat, (still) but the pressure is building, as Buyers keep arriving. You probably wont see prices trending up immediately, but you will see it…mark my words.
See you next month!