Comments on: West Linn Real Estate Market Results – December 29, 2008 – January 4, 2009 http://www.move2westlinn.com/2009/01/05/west-linn-real-estate-market-results-december-29-2008-january-4-2009/ News, Statistics, and Commentary about West Linn Oregon Real Estate Wed, 23 Jun 2010 15:10:28 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: dj http://www.move2westlinn.com/2009/01/05/west-linn-real-estate-market-results-december-29-2008-january-4-2009/comment-page-1/#comment-532 dj Fri, 09 Jan 2009 21:15:13 +0000 http://www.move2westlinn.com/?p=344#comment-532 The data suggests that WL took a 20% hit on pricing in 2008. I think Portland in general was late to the bubble deflation, where homes were still selling on the high side up until summer 2008 while the rest of the country started their slide in late 2006. I'm wondering if there are more price declines ahead in 2009 for the WL area. Home owners who are selling are now competing with bank-owned properties that are desperate to get these homes off their books. Check out RealtyTrac and type in "97068" and you'll see about 160 properties listed in various states of foreclosure. Unfortunately, I believe the foreclosure rate will continue to increase unless some banks are willing to modify loan terms and/or there is some government intervention. The bottom line is that home prices will most likely continue their declines in the WL area until foreclosure inventory is absorbed back into the market. In addition, buyers with the ability to get a mortgage (i.e. good credit score) and put 20% down remain scarce, in my opinion, hence sellers will need to pull out all the stops to attract whatever buyers are in the market to purchase a home. And the biggest incentive will be price. Gimmicks are not going to cut it (free flat-panel tv, car, vacations, etc.) so don't bother. It's all about price. One question for Ron or Jody - why does the "805 Nicole" home appear in both the "Pending" and "Sold" categories. I'm assuming that either it is a typo or a very quick sale ? The data suggests that WL took a 20% hit on pricing in 2008. I think Portland in general was late to the bubble deflation, where homes were still selling on the high side up until summer 2008 while the rest of the country started their slide in late 2006. I’m wondering if there are more price declines ahead in 2009 for the WL area. Home owners who are selling are now competing with bank-owned properties that are desperate to get these homes off their books. Check out RealtyTrac and type in “97068″ and you’ll see about 160 properties listed in various states of foreclosure. Unfortunately, I believe the foreclosure rate will continue to increase unless some banks are willing to modify loan terms and/or there is some government intervention. The bottom line is that home prices will most likely continue their declines in the WL area until foreclosure inventory is absorbed back into the market. In addition, buyers with the ability to get a mortgage (i.e. good credit score) and put 20% down remain scarce, in my opinion, hence sellers will need to pull out all the stops to attract whatever buyers are in the market to purchase a home. And the biggest incentive will be price. Gimmicks are not going to cut it (free flat-panel tv, car, vacations, etc.) so don’t bother. It’s all about price.

One question for Ron or Jody – why does the “805 Nicole” home appear in both the “Pending” and “Sold” categories. I’m assuming that either it is a typo or a very quick sale ?

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