[Grovenet] Forest Grove's Future (WAS: America's Trillion-Dollar Baby)

[Ron D'Eau Claire]

Ha, ha!!

Hardly a burble. The biggest impact of the low interest rates was the huge
level of activity that is not reflected in slower-than-normal activity for a
while since so many people who were even thinking about buying or
refinancing homes did so. But that sort of slowdown only lasts a short
while. Every sign we see since the first of the year is that the activity is
quickly returning to normal. Homes that go into foreclosure do turn up on
the market, of course, but it takes many months for that to happen so there
won't be any large surge in inventory because of that.

One interesting thing that we have noticed is that in Forest Grove there are
a number of homes for sale under $200,000. This was always the "expensive"
part of the area. The "cheaper" homes were in Cornelius, but in Cornelius
you have to pay over $200,000 to buy anything now. 

It seems the tables have turned: Cornelius is seeing the appreciation and
growth that once was thought to be happening in Forest Grove, as well as the
retail business growth. That won't hurt the nice homes in good locations but
some properties may well see a loss of appreciation if not an actual decline
in value over time. 

Another small indicator is what's happening on our busiest retail street:
Pacific Avenue. The Scooter store at A and Pacific is closing at the end of
this month. That means there will be six empty store fronts on Pacific
between Main and A street alone. I'm not counting the "Travel Place" at Main
and Pacific who have signs up that they're moving because I don't know if
something is slated to replace them or not.

Ron D'Eau Claire 

 

-----Original Message-----
From: grovenet-bounces at rdrop.com [mailto:grovenet-bounces at rdrop.com] On
Behalf Of David Morelli
Sent: Saturday, January 27, 2007 4:42 PM
To: Forest Grove local interests list
Subject: Re: [Grovenet] America's Trillion-Dollar Baby



On Jan 27, 2007, at 3:15 PM, Ron D'Eau Claire wrote:

> ...
> In the last quarter of 2006, 12-1/2% of all sub-prime loans were in
> foreclosure! That deterioration is expected to go on for several  
> years.
>
> Ron D'Eau Claire

Would that mean that the housing market has been "decimated"?

David
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