Elsewhere in WA
This is not my word, I only saw this posting at RGE blog....
"Well, the vacant land market in southwest WA state sure seems to be falling off a cliff. In my rural county between Portland and Seattle, sales volume has fallen over 50% YOY. County wide, we have averaged about 30 sales of vacant residential lots per month, for a monthly volume of about $2.5 million, for the past couple of years. Since September, the average has fallen to 14 sales per month and $1.3 million total volume. December was horrific - only 7 lots sold in the entire county, for a grand total of $511,000. December is usually slow, but this is bad. Each month gets successively worse.
The reason? A few of the local banks have suspended new construction lending. Up until the credit crunch hit, anyone with a decent credit score could get a land/home construction loan with no money down and no income verification. Lots of average joes rushed out to buy land and build houses they couldn't sell and couldn't afford. SURPISE! These lenders are taking record numbers of brand new homes through foreclosure. It is now extremely difficult for even A+ borrowers with good income and impeccable credit to get a land/home construction loan. Lenders are starting to go back to the old standard: You buy land with 30%-40% down. When you've paid it off, then we'll loan you money to build a house on it.
Vacant land prices have boomed here, rising over 100% since 2005, driven by easy financing and lots of people moving in from more expensive areas. Now there is tons of vacant land on the market at inflated prices, just sitiing there . . .
Written by Zarathustra on 2008-01-10 19:23:04"
"Well, the vacant land market in southwest WA state sure seems to be falling off a cliff. In my rural county between Portland and Seattle, sales volume has fallen over 50% YOY. County wide, we have averaged about 30 sales of vacant residential lots per month, for a monthly volume of about $2.5 million, for the past couple of years. Since September, the average has fallen to 14 sales per month and $1.3 million total volume. December was horrific - only 7 lots sold in the entire county, for a grand total of $511,000. December is usually slow, but this is bad. Each month gets successively worse.
The reason? A few of the local banks have suspended new construction lending. Up until the credit crunch hit, anyone with a decent credit score could get a land/home construction loan with no money down and no income verification. Lots of average joes rushed out to buy land and build houses they couldn't sell and couldn't afford. SURPISE! These lenders are taking record numbers of brand new homes through foreclosure. It is now extremely difficult for even A+ borrowers with good income and impeccable credit to get a land/home construction loan. Lenders are starting to go back to the old standard: You buy land with 30%-40% down. When you've paid it off, then we'll loan you money to build a house on it.
Vacant land prices have boomed here, rising over 100% since 2005, driven by easy financing and lots of people moving in from more expensive areas. Now there is tons of vacant land on the market at inflated prices, just sitiing there . . .
Written by Zarathustra on 2008-01-10 19:23:04"
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