Thursday, January 3, 2008
by Liz Warren
December was a bit slow. Closings for residential and Condo sales hit a total of six. Two condo units closed. One at Collins Lake in Government Camp and another in Whispering Woods in Welches at the Resort at the Mountain. As for the other four: two major fixer uppers under $80,000, one forest service cabin on leased land and one full time residential sale.
To put this in a national perspective. If you look at the entire market for 2005 and 2006, about a third of that market consisted of second home and investor buyers. The adjustable loan resets and credit crunch have removed much of that market for today and it is reflected in the 2007 numbers. I believe multiple listing is reporting about a 38% decline in sales from the prior year as of November for the mountain.
The mountain does not exactly fit that national mold. In most areas of the country the sales this year have nearly all been owner occupied. Luxury sales have held steady. Here, in our market, the second home buyers have propped us up from even fewer sales for the year. Nationally, many foreign buyers are swooping in to buy vacation homes in high end resort areas due to the declining dollar and increased inventory.
The market is returning to the way it was prior to the huge run ups in 2004 and 2005. It's back to reality and new rules of lending which were tossed out for a while.
It is really a great time to buy and here are a few reasons why:
1. Increased selection.
2. Few bidding wars
3. Repairs are easier to negotiate with more willing sellers
4. Historically low interest rates
5. Few Investors are in the market
6. Prices are soft and as populations in crease in Portland many buyers will be priced out of this market.
7. Minimal Land is available so prices will continue to climb.
