One Woman’s Opinion – Winter, 2010
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“There will always be properties bought and sold along the Central Oregon Coast because this IS a fabulous place to live.”
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The business of real estate in Florence, Oregon, early 2010 continues a difficult one for all parties involved.
For Buyers
Buyers are extremely wary, speculating that prices will continue to drift downward and thus waiting for some confidence in their timing. Lending rules continue to change and tighten. Appraisals are more expensive and may be further complicated by adjustments and added expenses for field reviews. In many instances, there is a lack of truly comparable, recent sales upon which appraisals for purchase can be based.
Buyers with properties to sell and Buyers without lender pre-approval are having a difficult time getting attention in this market. If you want to be successful in purchasing a desirable property at a good price, you must come to the table PREPARED to buy.
For Sellers
This market is not an easy one for Sellers, either. I am surprised at the number of properties that continue to go into foreclosure, or are being listed as short sales in our predominately retirement community. Because Buyers in Florence (as in other parts of the country) are shopping for bargains, aggressively priced properties are in highest demand. Other homes continue to sit on the market, resulting in an expanding inventory. Sales of distressed properties do nothing to reduce this inventory, but they do put downward pressure on pricing of homes in all categories.
The lesson here is that Sellers have to price their properties realistically. Buyers are simply not going to overpay in today’s market.
In Conclusion
I believe that the current condition of our real estate market will continue without much change into the foreseeable future. Because of the very nature of our community, we rarely encounter Buyers who MUST move to Florence, regardless of market conditions. The reality is that most folks will make their fortunes someplace else and move to Florence for quality of life, when …and if… they are able to sell what they have in their present locations and come here unburdened and financially prepared for the future. Until markets in neighboring states improve dramatically FOR SELLERS, I see nothing that will cause our existing inventories of “regular” listings to shrink.
This market is most beneficial to non-contingent, qualified Buyers driven by price, and to Sellers of truly unique properties, priced attractively. Presently, we remain in a Buyer’s market. It will take confidence in the future before we move on to the next phase, which I predict will continue to be a slower, more balanced market that favors neither Buyers nor Sellers.
I do not mean to sound all doom and gloom in my assessment of Florence real estate. There will always be properties bought and sold along the Central Oregon Coast because this IS a fabulous place to live. The market we had of constantly escalating prices was not a healthy one and could not (should not) be sustained. In time, our current market will change, too.
Updated Jan. 20, 2010
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