This graphic from the New York Times indicates the fall-out of the Fannie and Freddie troubles. It also indicates a general tightening of credit markets, just when were are looking for signs of life from housing markets. My house in Corvallis is sold - and there was not a single hiccup, but here in Portland I am hearing more and more of deals facing financing troubles and falling through. Anecdotally, the market appears definitely to be softening, even in the close in east-side neighborhoods that I am looking in. Lots of unsold homes, "price reduced" stickers on signs and houses going under contract and then reappearing on the market. This is all good for me as a potential buyer, but the rising interest rates are not helping my bottom line. Still they are low by historical standards. Add to this news of a surge in bankruptcies and more shedding of jobs in Oregon and things might get quite a bit worse before they get better. For my part, I am back to renting after 12 years of ownership and am in no great hurry to purchase. I anticipate even ore choices and better deals soon.
So the field experiment continues...
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I just got back from looking at a place in Philomath. $99k, I offered $30k (basically a tear down - I don't see how they'd take it, but never hurts to ask as it is bank owned).
Cheap House
This disappointing prospect in all this is that I haven't yet been able to sell my Waldport home. Medical or Law school is going to cost enough that it will essentially leave little option in retaining the property (renters are not a good options at the coast). And without the California retirees, the market on the coast has gone fairly soft.
All in all, I was pleased with my decision to buy a home as I think even after the fallout, push come to shove, its a reasonable investment... but I wonder at times whether I might have done better by renting for half the price.
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