Tuesday, April 5, 2011

Reader beware.

I've mostly ignored the Real Estate Blogs in Bend, because they are so obviously puff daddies.

You know, anyone who believe that nonsense probably deserves to be fleeced.

But when that nonsense strays over into the media, I call foul.

There was a piece on KOHD that proclaimed that rents were due to rise in Central Oregon.

You know, I kind of doubt this. But it certainly would be in the best interest of the real estate industry to make people BELIEVE this is true. They may even listen to the echo chamber and raise rents.

But is there a NEED for a raise in rents, with abundant empty and cheap housing and a falling populations?

Meanwhile, the Bulletin has an article: "Underwater Mortgages Could Rise in Oregon."

Well, yeah. The sun could rise tomorrow.

This quote seemed especially pertinent: ""Oregon remains largely dependent on wood products and construction industries..."

Well, that goes double for Bend.

"Until we can clear through these homes, we're not going to have people building homes."

What prompted the title of this blog and got me to write it, was this: The so called "experts" in the article neatly divide between people working for institutions who observe and monitor the real estate industry, ---- and those who work in the real estate industry.

The article also neatly divides between people who seem to have realistic appraisal of the market,----and those who seem to be horny bull moose nuts.

I'll let you guess which is which.


yokem55 said...

From my vantage point, despite the large number of vacant properties, rents are creeping up. Most houses rent within a couple of weeks. While there are tons of vacant homes, they aren't available for rent as they go through the foreclosure process or the REO sale process. The result - an artificially limited supply of rentals causing rents to creep up as a lot of people move from mortgage-paying to rent-paying.

H. Bruce Miller said...

KTVZ had a piece the other day about how new-home construction was roaring along in NW Crossing. If you drive through there you'll see three or four homes under construction. That's it.

OHDG said...

Yeah they're trying to raise our rent by about $50. One tenant already moved out. But they were lying and telling that tenant that the other tenants already pay over $100 more than they did!

Makes me want to move.

popgoesbend said...

Bruce, you aren't looking in the right places. I'm as cynical as the next guy when it comes to the real estate in this town, but I could easily walk you past about 20 homes that are under construction in NWX. I often pass 10 on one walk with the dog.

Duncan McGeary said...

I'm guessing these were previously contracted lands or homes, where it became either cheaper or safer to complete.

I'm also guessing the one exception to construction in Bend would be occasional custom homes.

Which isn't terribly helpful in reducing the inventory of homes.

popgoesbend said...

Probably more than half the homes being built are in a part of the subdivision that had the roads go in and the lots come up for sale within the last year and a half or so. That would be the area South of the commercial district and east of Mt Washington. I would guess there are 10 or so more in some phase of building on High Lakes Loop and the road to the north of it between Northwest Crossing Drive and the elementary school. They also spent the last few months putting in pavement and utilities to an entire new section of the subdivision east of everything else that is built. I think you can get out there by driving east on Drouliard off the roundabout around Compass Park. There really is a bunch of building going on up here. And even more crazy is that a bunch of the stuff is selling. I know a number of people that are building homes, but a lot of them are spec homes.

Anonymous said...

popgoesbend is corect. I am as negative on housing in bend as DM, and the positive spin is hype. But I live near NWX, there is a ton of building there and they are selling. If you look at the prices though, they are building them for an absurdly cheap amount per square foot. I do not know how they can make a profit. Basically you can get a new home in NWX for less than an existing one most anywhere on the west side.

Anonymous said...

The question about nwxc is 'how low can the quality go?'

only time will tell, but we all know that in 10 years these 'new homes' will be bend-gone and deteriorated, cheap don't make it in Bend.