More Rain on our Parade
Quite a headline! And, I just really wanted an excuse to use the above picture. It’s one I’ve enjoyed most of the winter (in part, thankful because I wasn’t out in at Mt. Bachelor). For those of a more intellectual bent, the photo is certainly symbolic of the rain on our recovery parade supplied by the most recent report (a 73 page monster . . . here’s the whole FHFA report) supplied on May 25, by the Federal Housing Financing Agency.
The Findings
The Agency’s report stated that the Bend area (actually defined as all of Deschutes County) showed the largest average home price drop, year over year, for the first quarter of 2010
of all 301 areas which were ranked. That’s number 301 out of 301!! Following are the cruel facts.
The study also measured prices (of sold homes only) over a five year span. Under this scenario, Bend fared a little better . . . showing a decrease in value of “only” 7.75 %. Still, a bit sobering to consider that a home, like the one below, purchased in Bend Oregon five years ago is worth substantially less than it was when purchased.
Nothing compared to the heavy hitters/real losers like Las Vegas (-42.13%), Detroit (-33.54%), and Ft. Myers (-32.74%)
This Year’s Winners
As long as were looking at these boring charts, may as well consider some of the winners.
Without making disparaging remarks, I’m not sure I’d like to live in Richland or Dubuque or Huntsville or Amarillo. Regardless, this chart helps to show the severity of our market condition. It also emphasizes that real estate is a local issue.
Are There Any Positives in All This?
On the surface, it’s difficult to find any positives in the data above. However, an article in yesterday’s San Francisco Chronicle yields a slightly different perspective. It stated that the “S&P/Case-Shiller Home Price Index showed the San Francisco area – which it defines as the counties of San Francisco, San Mateo, Marin, Alameda and Contra Costa – up 16.2 percent in the first quarter, compared with the same quarter in 2009.”
To extrapolate just a bit . . . for someone who sells a home in the Bay Area, “the jump in affordability makes a retirement property in Bend particularly attractive today,” as stated by Lester Friedman, president-elect of the Central Oregon Association of Realtors.
