By Curt Arthur, statesmanjournal.com
There is no question of the direct correlation between the health of the commercial real estate market and that of the residential market, including the number of foreclosures we see in the Mid-Willamette Valley each year.
Salem, like many other markets across the United States, has been stung by companies closing their operations in our market. Commercial vacancy rates have soared as we experienced closures from big box retailers such as Circuit City or Wickes Furniture, office building users like Holiday Retirement or industrial companies like Deluxe Ice Cream. The loss of these jobs weakens the housing market and negatively impacts the purchasing power of our local communities as the average household income plummets.
As household income plummets, the amount of foreclosure notices rise with residents unable to meet their expenses. Read more…