Hello all: Up here in the great Northwest, we had it better than the rest of the country as far as real estate declines. The market is still active here, but slowing. The announcement today by Washington Mutual that they were laying off 3,300 workers in their loan centers definitely hits home. Up here, WaMu. is legendary and a formidable competitor. I was talking to a manager I know at Wa.Mu. today and she indicated things were tough.
I think the slowdown is catching up to us. My friend at WaMu. indicated it was their feeling the slowdown will last for the next 18 months. For us in the Northwest, the real estate slowdown started the first part of 2007. I know it started earlier for most of the rest of you. Another friend of mine pegs our turnaround as Fall '08. That might not be far from the mark.
In the meantime, I keep hearing phrases like "it's a normal market" from experienced real estate professionals. That means we all need to work a little harder to earn our money realizing there will be an up cycle down the road. I've seen a lot of people not make it in our office and I'm sure there will be more. Then there will be good times again and everyone will want to get in the business!
For those of you looking to buy, it's a a great time. Loan rates have stayed low (recently at 2 year historic lows), there's tons to choose from, and you can borrow money if your credit is good and have strong assets. If you're sitting on the fence waiting to see what happens, don't wait too long. The opportunity within the next 6-12 months is tremendous. Investing in real estate will be in vogue again.
Good luck to all of you. It's a difficult market right now but people are always buying and selling real estate. At least that's what a guy I golfed with recently stated! Have a blessed night.
Paul
Paul McFadden
