Thankfully, I’m not late to post this month………..Things have certainly been slower, so I’ve got time to catch up, that’s for sure. Weather has been amazing as well……and that’s why September is the best month of the year in Hood River!

All brokers are working this month and the buyer’s activity has been high. Year to date numbers show us selling the same units as some of our competitors, quite an accomplishment when you consider we are less than one quarter their size. Thank goodness for process.

Prices are stable to weak, with closings that occasionally firm up a price range, and others, that are destroying price ranges. Houses in the 500+ range are shrinking quickly, and we are now seeing multiple markdowns of properties that opened into the “dead zone” of 600+…..Inventory months will be dropping in the next few months, which is a traditional fall trend, but expect it to be a bit more pronounced this year.

Closings from Augusts rush are coming in, and if you are planning on doing something in Real Estate, especially refinance, PLEASE do yourself a favor and call us first, so you don’t spend $500.00 to find out your market got reset last week……I can’t tell you how often this is happening.

The constant drumbeat of price reduction has faded slightly, and in the last few weeks, the buyer’s have been overplaying their hands, much to their chagrin. Sellers are simply balking at another 15% off their already 25% marked down home, and where they don’t have to sell, they wont. Unfortunately, if they DO have to sell, it’s becoming a rare property that can get down into the correct range without going equity negative. Generally, you can look at a purchase date and get an idea. If you bought in 2005 more or less, you are a more likely candidate of getting through. 06-09 is tough, unless you came in equity heavy.

So now, the focus is on those few remaining properties that are equity heavy, but willing to deal……now, they do, however often come with those “quality defects” I’ve so often mentioned….but hey, at least there are buyers. I’d even hazard that the “confidence gap” has narrowed recently….

Foreclosure notices are now taking up a full two pages in the weekly Hood River News. Sobering. I remember when that was last the case, and it was all the way back in 1992….

I see some bright spots (like us being up 100% for the year) but it isn’t without its bare knuckle work. 4.375% 30 year fixed is the going rate, and that will certainly get someone interested, but with negotiation, appraisal, Automated Market Valuations, desk reviews, and jittery sellers, who are negotiating while they are coming to grips with “is that all I can get?” well…..

It is no country for old men, to use a movie title….. (Which was a terribly depressing movie…but very good. Who thinks of that stuff?)

October is looking weak, but traditionally we save it in the last selling week. (Which is last calendar week of September) The big test is November. We already have December in the books, so it’s a 60 day game, clock is ticking, and we are slightly behind…..

So, got to run, see you next month, Thanks for reading!

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Overall, Hood River Real Estate has been pretty good this month. Lots of deal action, but loooower prices.

Last year, in the fall, Sellers attempted to hold onto their prices, and managed to do a pretty good job of it. This year? Different story. Sellers have capitulated, and are selling at some steep discounts. That makes it tough for those left in the market trying to sell, but it makes the Buyers very happy.

Of course, that hangover will be lasting for a long, long time, as appraisals will become tougher with this seasonal dip. I’m certain appraisers can factor in distress sales, but a number of these sales are not distress sales, they are open, free market sales, and that’s going to hurt…..

HERA and HVCC continue to be slightly problematic, but more problematic are the new bankers dealing with mortgage. Now we are returning to the old “bankers” model; you have to prove you don’t need a loan to get a loan…….

Investments are pricing at cashflow again, I’m guessing closer to 8-12%. Thankfully. Lending, however, is all but impossible. These days, its all about owner financing.

Still with all of this, it’s been a good month, and October looks strong and so does November. That leaves only one month after that to get past 2009……….

Long term forecast for the Hood River market will be flat, at best, with pockets of calamity, and a few wipeouts. Mostly, though, people seem to be keeping it together, and most of all, working together to figure things out…..All in all, survivable.

Thanks for reading! see you next month!

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Overall this month has seen a good uptick in volume, but a decrease in prices. How’s that you say?

Cash. Cash cash cash……I’ve never seen so many all cash buyers in this market. Cash being King however, means something else…….discounts. And how.

Lots of discounted offers, and lots of deal making and negotiating. How these impact comparable sales can be devastating. Look for troubling signs out in Fox Hollow, and Country club, as appraisers attempt to swallow recent sales that are 20, and 30% below the asking prices. Other markets are marking to more traditional prices as sellers finally come back to earth in Hood River.

As prices grind lower, however, more and more buyers are showing up. The first wave and,  (in my opinion) the best deals have come and gone. If this does prove to be a bottom, July and August will be the floor. Remember about a year ago when I was talking about toxic events? I think I can say that barring another toxic event, the structural instability in residential is all priced in at this point. It’s only the bleeding that’s caused by long term unemployment that’s left, and that tends to come out slowly, and over time.

I hear in Florida, Nevada and California, there’s booming business in “foreclosure tours” but not here. Here, each deal is a one off, each motivation, unique. Neighbor to neighbor, house to house, block by block and marriage by marriage, it’s all playing out on a very small, and very personal scale. This is the downside of hyper-local.

As for mortgages…….Not too many troubles on the HERA adjustments, but I’m certain we’ll see some stuff here soon. Key factor to avoiding those issues, is don’t renegotiate the contract after appraisal has been ordered, make sure you intend on closing the deal with the mortgage broker you start the process with, and allow about 4-5 days ahead of closing to begin escrow……….

September is loading up, Hoping October will be strong as well. It’s been a long spring and Summer in Hood River Real Estate, see you out here soon!