This year, the action is all overseas with the potential for Greek default. In our little bubble, what we are seeing is a fair number of buyers out in the marketplace, but a very difficult time obtaining financing because of low appraisals, primarily due to Sellers, in some instances, running towards the buyers. This has, unfortunately, caused this sort of negative feedback loop. Strict underwriting has caused sale prices to be lower, has cause more appraisals to come in low, has, caused……well, you get the picture.

Further complicating the picture is the potential fallout of an event like Greece’s default. To me, that means tougher credit, but to some, that means a flight to the safety of the US dollar…..Love that one. Money pouring in, Banks still too scared to lend. I bet there will be a bifurcation of that credit access too. If you have GREAT scores, you’ll get faster, easier underwriting and a better rate. If not, you’ll get….nothing. I hate to say something as simplistic as the rich get richer, but It’s there, it real, and it’s happening right now.

In a bright spot amidst the carnage, one of our group projects that we help out on, managed to get past a huge milestone. I can see a double digit number of jobs moving to Hood River from that project alone.

I bet there’s going to be some firming driven by demand by new arrivals to Hood River in the future because of the surprising well of entrepreneurialism around here….. (AND, you can already buy cash-flowing rentals in Hood River as well, so there’s that, too)

On the retail front, we have all had a steady, not stellar, first half. Costs are high, but people are coping. We are also having a tough time finding good talent. Imagine that. All this woe in the national unemployment scene, Hood River, with an 8% unemployment rate, and we can’t find a good line cook.

It all leaves my head spinning, really. I’ve got some big, big worries about larger economic issues, but right now, in Hood River, in our areas….I’ve got to say, it’s a pretty decent time to be in the market. That could change tomorrow, mind you, but I have to say (With a wry smile) that its ok to jump in the pool…

Armageddon or salvation seems to always be just past our 30 day window. An answer that “auto magically” (my new favorite word) seems to adjust, and always be out of reach. Like the carrot dangling on the end of a stick, we’ll put on foot in front of another until we get there, eh?

See you all next month.

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!

Click Here to see the “Havens” Article in the New York Times on Hood River.