Hood River Real Estate and Columbia Gorge Real Estate

Happy New Year!

This month has been quiet from a deal point of view, but we sure have been busy with Buyer’s activity. Other companies seem to have picked up too, but still others, no sign of any action. My sense is that there’s been a shift in the sourcing of our Buyers, and it is disproportionately affecting some companies, and not others in the Hood River Realtors market.

The inventory prediction is coming true. Units are dropping, and the pickings are slim. Nice properties are tough to find. Very few Sellers are coming onto the market because of the weak pricing.

One of the bright spots (and this is twisted) is this. The downturn is starting to hit across so many different sectors of the market that properties that are coming to the market seem to be because of something else, and no longer associated with sub prime.

Commodities trader? Markets have collapsed, sell the home in Hood River. Exporting overseas? Market has collapsed, sell the home in Hood River. Auto dealership closed? Sell your home and move away. Get the drift?

How does that all pan out? decent inventory, but hitting in waves unassociated with sub prime resets, etc. Varied drivers as to motivation, but an interesting selection……I heard the other day, the following comment. “Last year, it was Real Estate that was seen as dragging on the economy. In 2009, The Economy is now dragging on Real Estate”

It’s a subtle difference, but it’s a big one.

I was talking to a friend this morning as we drove through town. You can’t buy a new car in Hood River anymore. All the dealerships are gone. I remarked that we might be returning to the sleepy days of Hood River again (I actually said it wistfully, since I really liked those days) He looked at me and said “I don’t think so. I fear that the quieter it gets, the more elite it will get.”

There’s some truth in that, I’m sure…..

Ok, by the numbers, our values are hanging in there. Down only slightly. There’s been an increase in traffic out on the west side, but this seems to be cyclical. Units sold, however, are still down year over year…..by over 30%

This month the Mid Columbia Association of Realtors fees are due. I expect that there will be an exodus of agents and that it will begin this month.

Stay Tuned.

Good Riddance 2008!

The market’s have really seized up in the last 60 days, as everyone is gripped with uncertainty and angst. So much so, there’s not much to write. Some deals are closing, they tend to be of lower price points, that’s dragging on the values of the next bracket of prices up ($350 and up to about $500 are experiencing some downward pressure due to low Buyer traffic.) Buyers continue to be offended that they can’t “steal” a property, Sellers, by and large, can hold on to their prices (see “underwater Lock Down”) and slowly, inventory is starting to scratch the bottom.

So….It’s a bit of a stalemate. If it weren’t for the amazing interest rates, we’ll we’d be in a right fine mess.

So here’s to 2009. Remember that comment about making sure your credit score was solid? Remember the comments about the weird underwriting standards?

2009 has that and so, so much more in store. It’s going to be a challenging year, but the doomsday scenario is totally oversold, so I expect some firming up after while, perhaps June, with the usual caveats.

The Buyers keep coming, and there’s a full raft of them around these days…..the trick is getting them off the sidelines…….If 4.8% won’t do it, well, I’m afraid nothing will.

Maybe the warm weather will help. I’ll still be here, so don’t forget about us!

Happy New Year!

Making sense of this market sure isn’t easy in Hood River Real Estate.

There. Now that we have that out of the way, here’s what’s been going on.

Basically, everything is frozen while everyone waits for a signal, ANY signal, that its safe to go out and buy something. There’s still a bit of a Buyer’s “hype-gap” (where the buyer’s show up and expect the entire market to have cratered, and is bummed when they find out that they can’t offer 40% off ask) but there are signs of increasing stress on the sellers, although once the properties dip in price, there seem to be buyers out there willing to respond.

The market is also continuing to thin out. Next spring in Hood River continues to be worrisome due to lack of inventory. At worst, it’s a market stabilizer.

More people want to move to Hood River by the day. A lot of them are still stuck in other transactions, and so here we are, holding, holding, holding…..

As far as Realtor confidence, things remain tenuous. It seems a bit like the offices are stuck in limbo, with no direction, a bit adrift. I refer to it as “gravity-less” where we are all not able to get a bearing on anything but each other. That creates an interesting dynamic, one that will catalyze, probably in the New Year, as Hood River Real Estate Brokers decide whether to stay, or to pack it in for greener pastures.

In 60 days, my guess is there will be about 20% attrition (that’s the PMAR estimate too, by the way) I think this area has over 200 agents…….so 40 agents. Wow.

Interest rates continue to be tough, but will relax here in a bit, I continue to say…”If you like it, buy it” because of my decreasing confidence in any replenishing inventory……….

That’s it for this month. Happy Holidays! My cards go out next Friday……….Don’t you just wish you were getting a pithy card from me…… Wait a minute, many of you are…..