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

The global challenge

News
Friday, June 27, 2014
062714 thumb globalmarketBY JASON NORRIS | OB BLOGGER

Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.


Read more...

Powerlist: Credit Unions

June 2014
Thursday, May 29, 2014
BY KIM MOORE

A conversation about credit unions with the CEOs of Advantis Credit Union and OSU Federal Credit Union, followed by June's Powerlist.


Read more...

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...

Creating a culture of compliance

Business tips
Thursday, June 19, 2014
DataBY MONICA ENAND | GUEST CONTRIBUTOR

Nine tips for building habits among employees to respond when needed.


Read more...

The 100 Best Green Workplaces in Oregon

June 2014
Tuesday, May 27, 2014

GreenLogoOregon is known for its green-minded citizens, and many workers are attracted to firms and organizations that practice green, not just pay lip service to it.


Read more...

Understanding Oregon medical marijuana dispensary tenants

News
Friday, June 13, 2014
061314 thumb grassrentBY CLIFF HOCKLEY | OB GUEST BLOGGER

This article summarizes the key considerations a building owner must keep in mind when thinking about leasing to a medical marijuana dispensary.


Read more...

Why I became an Oregon angel investor

Guest Blog
Monday, July 14, 2014
AngelInvestBY TERRY "STARBUCKER" ST. MARIE

I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.


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