Mixed messages in the local economy
August 14, 2013 —
As the nation’s economy rebounds, an unscientific survey of business in the Upper Delaware this week has provided mixed results.
Recreation and the second-home industry traditionally lead the river valley’s economy.
Milford, PA realtor Davis R. Chant said the market so far this year is ahead of last year. “In 50 years in the business, I’ve seen a series of peaks and valleys. The years from 1997 to 2007 led to a peak,” which was followed by a multi-year decline.
Chant said this year has seen prices again start to climb, “with many exceptional values and interest rates better than they have been.”
“There have been a fair number of cash sales, and people with good credit are getting 3.5% to 4% financing.” Underpriced real estate is a lure for some long-term money from bonds with smaller returns, he said.
But some sellers are waiting for more. “People who bought $300,000 homes between 2000 and 2007 are seeing similar homes going for less, and they are holding back. They’d like to break even,” he said.
Associate broker Diane Butler of Eagle Valley Realty in Narrowsburg, NY, said, “We’ve seen the market pick up. House sales are increasing and prices are better. Foreclosures seem to be winding down.”
Memories of banking failures that led to the recession have not gone away.am seeing more cash buyers and loans through credit unions. Many people still seem to be angry about the banks’ role in the recent recession,” Butler said.
She said the increase in cash sales has helped some sellers. “All the foreclosures and short sales brought appraisals down, and buyers with cash are more understanding about the appraisal issue.”
Through the first half of 2013 in Sullivan County, some major retail and service industries have not shared in the mild recovery seen in neighboring Orange and Ulster counties.
Sullivan collected $8.30 million in sales taxes from April to June of this year, down from the $8.32 million collected a year ago. Over the first six months, sales tax revenues fell 2.56% in 2013.
The valley’s major livery operators agree that a wet June contributed to problems locally.
Upper Delaware National Park Service Superintendent Sean McGuinness reported a 40% decline in visitation in June.
“The river’s been running over six feet [at the Barryville gage] regularly,” said Rick Lander of Landers River Trips. Canoes, kayaks and tubes go unused in high water. “We can’t launch anything but rafts when the river is six feet.” Lander said his campground business was similarly impacted. “Would you want to go camping in the rain?”