Home Archives July 2008 Housing slump continues to pull down projects, sales, companies

Housing slump continues to pull down projects, sales, companies

| Print |  Email
Tuesday, July 01, 2008

STATEWIDE It’s become even harder to make the case that Oregon is immune to the housing crisis, after three high-profile failures hit the news back-to-back-to-back in June.

The first story, from Portland blogger Jack Bogdanski, involved the streetcar extension to the towering South Waterfront project, which was financed on the assumption that $500-per-square-foot condos were the thing of the future in Portland. Whoops. Sales have been stagnant, and the Portland Development Commission was forced to ask for an extension on a $5.9 million loan to Bank of America to avoid defaulting.

On the following day came the announcement from Street of Dreams builders that the big show will return this summer — even though not one of the over-$1 million palaces from last year’s event has sold. The 2007 show featured the latest in luxurious design, but agents had difficulty moving the mansions because of their remote Clackamas County location. And that was before gas topped $4. Whoops.

The day after that, the Oregonian reported that Matrix Development dba Legend Homes, one of the state’s largest homebuilders, had filed for bankruptcy. Legend’s fall sounds familiar: builder buys too much dirt, notably in Bend, then can’t sell as the market crumbles. Bank clamps down. Subcontractors line up to collect. Whoops.

Unfortunately for Oregon’s economy, none of the downward trends that began accelerating this spring (see “The Party’s Over”, May issue) are showing any signs of reversing. Home values are falling, short sales and foreclosures are stacking up, banks and builders are scrambling, and the market is bloated with supply. It’ll take a significant surge in economic activity for things to change, but the University of Oregon’s Index of Economic Indicators warns of  “persistent weakness… consistent with at least a mild recession.”


BEN JACKLET


To comment, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

More Articles

Woman of Steel

November/December 2014
Wednesday, October 22, 2014
BY LINDA BAKER

Tamara Lundgren tackles the challenges—without getting trampled.


Read more...

Launch

October 2014
Thursday, September 25, 2014
BY JESSICA RIDGWAY

October's Launch article features Soul Kitchen, Easy Company and Slick's Big Time BBQ.


Read more...

Two Sides of the Coin

Contributed Blogs
Wednesday, October 22, 2014
22 twosidesBY JASON NORRIS

Historically, when the leaves fall, so do the markets. This year, earnings, Europe, energy and Ebola have in common? Beyond alliteration, they are four factors that the investors are pointing to for this year’s seasonal volatility.


Read more...

True Blood

October 2014
Thursday, September 25, 2014
BY JOE ROJAS-BURKE

Antibiotics really aren’t magic bullets.


Read more...

Downtime

October 2014
Thursday, September 25, 2014
BY JESSICA RIDGWAY

I'm not very interesting,” says a modest Ray Di Carlo, CEO and executive producer of Bent Image Labs, an animation and visual effects studio.


Read more...

A Complex Portrait: Immigration, Jobs and the Economy

November/December 2014
Wednesday, October 22, 2014
BY JOE ROJAS-BURKE & KIM MOORE

Oregon Business reports on the visa squeeze, the skills gap and foreign-born residents who are revitalizing rural Oregon.


Read more...

Innovation: a critique

News
Wednesday, October 08, 2014
1008 innovation thumbBY LINDA BAKER | OB EDITOR

A Design Week panel discussion raises questions about how innovative we really are.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS