The December 2009 Market Action Report is out for Yamhill County and the Portland Metro area.
What is selling?
Homes under $300k, especially for first time home buyers (under $200k). The generous tax credit keeps lubricating this market.
Short sales (need lender approval to sell at a loss), Bank-owned properties (REO), and very low prices relatively are selling. The scavengers are cleaning up the battlefield, put nicer, the bargain shoppers are buying.
What is NOT?
Luxury homes (golf course, gated community, fine homes on small acreage). We agonize because we cannot buy a showing for these homes right now. This market is as good as dead. We do not even have enough sales to evaluate value reductions. We need buyers to create data! Some people in moderately high ranges ($500-700k) have tried dramatic price reductions of $200k and more, some with dream/gift financing, and it still has borne no fruit for the effort and the loss.
Buildable Lots and Land: We used to believe we could sell a buildable parcel every day if we only had them. Now we have a rich inventory and there have only been a few sales. People do not have the confidence or the money to invest in building right now. We have dream inventory but virtually no buyers.
Vineyard land and wineries: This is the Holy Grail of our area. But wine sales are down, boutique wines and higher priced wines characteristic of our area are waning, and there is much talk of overproduction in the industry. Prices are very soft and buyers are slow and skeptical.
Commercial office buildings, retail stores, and multi-family: Demand is dropping precipitously as businesses, stores, and companies consolidate, go out of business, and downsize. The spigot for commercial money is turned off.
New construction: While we are seeing a few brave souls begin to build again