Dowtown Portland Oregon neighborhoods are feeling the same squeeze as other outlying areas and suburbs. There are several condo developments in the South Waterfront; Meriwether Towers, Atwater Place, and The John Ross. All buildings offer luxury living in this up and coming location. Sweeping views of dowtown, Mt. Hood, and the Willamette river are features that can’t be matched elsewhere.
Meriwether Condo
Portland Development Commission has grand plans for the area, located just south of the Ross Island Bridge along the Willamette river, and has been projecting 1000′s of future jobs. With convenience to all endless downtown art, culture and dining location is everything. The South Waterfront is connected by street car making transportation easy and vehicle ownership optional. Construction began in 2005 and both Meriwether buildings sold out very quickly. Rapidly increasing real estate prices drove speculators into the area and great profits were common for those who purchased pre-completion and immediately resold 6 months later.
That was then, this is now. Guess what’s available today? Deals! Occupancy is hovering around 50% altogether. John Ross is about 60% sold and Atwater Place is currently 30% sold out. Supply is in abundance and some speculators/investors who purchased in the Meriwether Towers are being forced to sell in this down market or face foreclosure. Check out RMLS 8112599. It’s a 3100′ luxury condo with Mt. Hood and Willamette views, offers 2 large balconies, 3 parking spaces, 3 bathrooms… the list goes on. All for a list price of $979,900. This same unit sold for over $1.6m in 2006! Keep in mind that Portland prices have dropped about 15% from peak and this place is offered at 40% less than it’s previous sale. WOW!
Not all foreclosures make a great investment so here are 3 suggestions for evaluation of property:
1. Run comparable sales within a 1/4 mile radius, and more specifically, only those with the same legal description. Every subdivision gets a legal description for identification purposes in public records. Let’s say you’re interested in purchasing this condo in The Meriwether Tower. Running comparable sales in the Atwater or John Ross building is a good comparison for the South Waterfront area but if you want to gauge the potential purchase a bit more accurately search only legal descriptions with the word “meriwether.” Same theory applies with Beaverton or any Portland neighborhoods.
2. Look at the tax record. Although property taxes are not based upon sale price the assessor’s no slouch when it comes to real estate value. I’ve found their opinion of market value somewhat helpful as another angle when gaging investment potential. Records are updated every couple of years so, depending upon what current market conditions are, an adjustment factor needs to be figured. Current sales are running somewhere around 15% under tax market value… just a quick rule of thumb for the moment.
3. What does Zillow.com say? Type in the address and find out what their “Zestimate” shows. Although you have to take everything it says with a grain of salt they do have great algorithyms giving theoretical value based upon several factors. It provides another bead on the deal anyway.
Review of all three factors on RMLS #8112599 show this:
- Comparable sales are running around $383/ft for sold listings, $402/ft for active. Our subject is priced at $313/ft
- Tax assessor’s opinion adjusted 15% puts value over $1.3m
- Zillow.com calculates current market value at $1.5m
RMLS 8112559, courtesy of Philip Higgins
All 3 factors weigh in on the equation and heavily tip the scales toward $980k being a screamin’ good price! This particular condo listing has entertained numerous offers and will most likely close slightly above asking price. It’s not that buyers don’t have money and can’t get financing, it’s that they’re waiting for bargains like this to take advantage of. Homes for sale in Portland priced agressively move quickly and buyer outlook for the near future is amazing. Opportunities will not last.
For more information on the Portland Oregon real estate market and homes for sale please check out www.maxwellsinclair.com!
