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 Rail Baron

October 2014
Thursday, September 25, 2014
BY LINDA BAKER

Oil is gushing out of the U.S. and Canada, and much of it is coming from places that don’t have pipeline infrastructure. So it’s being shipped by rail.


Read more...

The Backstory

October 2014
Thursday, September 25, 2014

In our cover story this month, Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, discuss their rapidly growing businesses and Portland’s red hot food scene. The conversation provides an interesting lens through which to explore trends in the grocery store and restaurant sectors.


Read more...

100 Best Nonprofits announced

News
Thursday, October 02, 2014

100NP14logo4WebOregon Business magazine has named the sixth annual 100 Best Nonprofits to Work for in Oregon.


Read more...

Knight Vision

October 2014
Thursday, September 25, 2014
BY VIVIAN MCINERNY

Travis Knight wants to release a movie a year. Can he pull it off?


Read more...

Podcast: Testing for Emotional Intelligence with John Hersey

Contributed Blogs
Friday, September 19, 2014
ivbU3sIXBY TOM COX | OB BLOGGER

How can you tell if you, a peer, a subordinate or a job candidate has the emotional intelligence needed to do well?


Read more...

Back to School

September 2014
Wednesday, August 27, 2014
BY LEE VAN DER VOO

By now we’ve all read the headlines: Starbucks is giving away free degrees. Except it isn’t.


Read more...

Constant Contact

October 2014
Thursday, September 25, 2014
BY AMY MILSHTEIN

To prevent burnout, companies are banning email and after-hours communications. But is the 24-hour workday here to stay?


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