Wow, so much to take in….. This post-election world has yet to set in, but it’s clear, we are in new territory……
Hey everyone welcome to America in Late 2016. Bet you didn’t think it would look like this. Markets soaring (Both Real Estate and Equities) but nothing but uncertainty ahead. So let’s dive in!
The Case Shiller index this month has fully recovered from the 2008 housing crisis, and values have returned to their pre-2008 levels. Portland (Closest Market tracked by Case Shiller) is putting up a 10.9 annualized rate as of September.
Stories from the ground however, show signs of softening. Sales pace is down in PDX and prices appear to have crested. The same for Hood River, except for the sales pace. Things are still clicking here….slight uptick in inventory, which is common for this time of year, appears to be slightly larger than in years past….leading to hopes of better inventory levels for 2017.
The outlook for 2017 now indicates headwinds, and a slower pace of appreciation (again, also helpful for inventory). PDX is forecast to soften to 5%+ for 2017 given the new economy, and rising interest rates. I would suspect Hood River to be similar, and slightly more constrained, unit wise. I do feel however, that we will NOT be as tight on inventory levels for 2017.
A Goldilocks era for Hood River Real Estate? Hmmm… Not sure. If more units become available in the city for sale (not likely) but if so, we might see prices moderate slightly. That however, is a big IF. The building season for 2017 does look to be crowded, with an absolute bomb of properties in for permits at the moment (probably 20+ right now with another 30 or so that I can see, all for spring of 2017).
That’s a lot of construction. The last time I saw the characters I’m seeing now getting into housing was spring of 2008.
Welcome to the roller coaster….that pause you are experiencing….will be temporary.
See you in 2017! Thanks for a great year, and your referrals, recommendations and business.