January 2010 Portland Home Appreciation Report
Metro Portland Area |
Yr to Date Avg Price | Avg Mkt Days | Avg Appreciation |
| North Portland | $23600 | 90 | -11.3% |
| NE Portland | $287100 | 76 | -10.2% |
| SE Portland | $240900 | 100 | -12.7% |
| Gresham / Troutdale | $222100 | 152 | -14.1% |
| Milwaukie / Clackamas | $28800 | 145 | -9.5% |
| Oregon City / Canby | $279500 | 141 | -10.7% |
| Lake Oswego / West Linn | $486300 | 235 | -9.8% |
| West Portland | $420500 | 175 | -12.0% |
| NW Portland / Washington County | $369300 | 158 | -8.7% |
| Beaverton / Aloha | $241100 | 122 | -11.9% |
| Tigard / Wilsonville | $316000 | 178 | -10.3% |
| Hillsboro / Forest Grove | $243200 | 140 | -12.3% |
Data: Jan 18, 2010
Source: RMLS Area Report Metro Portland & Adjacent Regions
Dave’s Commentary on the Portland Real Estate Market:
Number of homes sold is up tremendously over the same time a year ago, nearly a 50% increase. This represents the number of transactions, not dollar volume. Home owners and investors need to keep in mind that prices mentioned above and appreciation numbers reflect what’s been happening in our entry level market. The $200k homes are what’s selling at the moment. Skews the curve…
Currently about 23% of Portland’s home owners are in a negative equity position. If you purchased in 2006 or 2007 I can almost guarantee you’re under water. It”ll contintinue to be this way through 3rd quarter of 2010. Prices have stabilized and the downward trend has subsided for the moment. Good news is that building starts are nearly non-existant, down 86% from the peak in 2005. This helps eliminate inventory and drive up prices. We’re in an interesting situation. New home construction fallout led the recession and we’re seeing light at the end of the tunnel even though these displaced jobs have not reemerged. Unemployment is still around 12%.
First time buyer credit of $8000 is pulling buyers in from a limited pool. Let’s face it, there’s only so many in que. Entry level buyers are definitely motivated by the cash incentive but that’s not the only reason homes are selling. The tax credit is a driving force for about 25% of first-time buyers in Portland but 75% would purchase regardless. On the other hand, not so sure that the $6500 repeat buyer credit is having any affect. Either way, a contract has to be in place by April 30 of this year and the sale must close by June 30th to qualify for the tax credit.
Portland luxury home sales are few and far between. Percentage wise they make up a small number of total transaction volume anyway but for the moment these places are just not moving. Want to pick up a deal? Look into Hidden Lake Estates (site of the 2006 Street of Dreams) listings! There are homes selling in this development for 1/3 construction cost. Amazingly beautiful estates that’ll be just as good on the investment side. Saavy cash buyers can pick up gorgeous homes for pennies on the dollar. This market will recover and high end buyers will reap big benefits in years to come.
The bottom line; Rates and prices are very low. Neither will probably go noticably lower any time soon. Spring in coming, home sales pick up and peak in June. Buy now if your personal projection is to stay in a house for the next 3+yrs. Take advantage of awesome mortgage rates. Wait to downsize, the market will improve for sellers.
Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.
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