Yes, the numbers are confirming what many of us already knew: things have slowed in the Portland market.
Reports are out today show that Portland’s real estate market has a 12.8 month inventory of homes. What does that mean? Well, if no new listings were taken as of today it would take over a year to sell all of the available inventory. That’s a huge jump from the previous 2 years. In January 2007 we had 6.5 months available and the year before that, when things were going gang-busters in the real estate market, there was only 3.2 months. RMLS reports that inventory hasn’t been this high since January of 2000.
The jump is due to an increase in the number of listings (11.9%) and a decrease in sales (-31.9%). Data released yesterday from the National Assocation of Realtors report that real estate sales numbers fell in 45 states in the last quarter of 2007, with Oregon being one of the hardest hit at -38.4%. *Ouch!* Here is an Associated Press story about NAR’s numbers.
The GOOD news is that the Portland Metro area is still in the positive when it comes to appreciation. As you can see by the table below the only neighborhood in our market that didn’t appreciate was Milwaukie-Clackamas. NAR reports that the Portland area had a positive appreciation of 1.8%. *Whew!* That’s good news.
Portland Real Estate Activity - January 2008
Area
Average Days on Market
% Appreciation - Last 12 Months
Average Sale Price YTD
North Portland
76
8.3
$268,000
NE Portland
81
7.3
$329,900
SE Portland
69
6.7
$279,600
Gresham-Troutdale
80
4.4
$249,600
Milwaukie-Clackamas
93
-6.4
$369,000
Oregon City-Canby
103
1.1
$319,300
Lake Oswego-West Linn
77
7.5
$588,800
West Portland
89
4.6
$503,100
NW Washington County
78
6.3
$418,300
Beaverton-Aloha
67
3.2
$257,100
Tigard-Wilsonville
81
4.8
$377,700
Hillsboro-Forest Grove
93
4.2
$280,600
Mt. Hood-Govt Camp
75
2.5
$239,800
Columbia County
115
10.9
$225,800
So, what does this all mean? Is Portland’s real estate market is headed down the tubes? I am holding steadfast in my opinion that we will not be hit like many parts of the country. Our appreciation is holding. Mortgage rates are low. Spring is just around the corner. The stimulas package is a go. There is potential for an upswing. I’m keeping my fingers (toes, legs, and anything else) crossed that it will happen.
I have decided this year to not spend money on Valentine’s Day cards. Instead I am determined to try and find more unique ways to express my feelings for my loved ones that doesn’t involve killing trees or helping to make a greeting card company rich. One example is this very cool Valentine’s video:
And for you Portlanders who haven’t already made Valentine’s plans, don’t worry, there’s still time! The great thing about Portland is the variety of events that are happening every day.
Tonight you could dine on a decadent buffet and listen to cool tunes at Jupiter Hotel’s Whipped Event or tomorrow night you could experience the controlled chaos of a live Live Wire show at the Aladdin Theater where China Forbes of Pink Martini fame will be performing.
For a more casual weekend you could take your honey to the Yard, Garden & Patio Show being held this weekend at the Oregon Convention Center or perhaps have a tree planted in his or her honor by Friends of Trees. All it takes is a tax-deductible contribution of $25.
Maybe your idea of the perfect Valentine’s date is to hide away in a cozy corner of a dimly lit restaurant. Hummm? The folks over at Opentable.com have a list of Portland restaurants that are serving up special Valentine’s Day menus. Ahhh, food and romance - a timeless combination.
As you ponder your Valentine’s Day agenda, I will leave you with a quote about love from Nicholas Sparks: “Love is more than three words mumbled before bedtime. Love is sustained by action, a pattern of devotion in the things we do for each other every day.”
Yes, the market has slumped, and yes, it might even go a little lower, but if you plan on keeping the home for several years, history tells us that homes will continue to appreciate. A look at RealEstateabc.com’s chart of median prices in the US since 1968 will give you a good idea of what I mean. It shows that, on average, homes have appreciated 6.34% annually. And with interest rates so low and an abundance of homes on the market, conditions are good for buyers to come out ahead.
In my humble opinion, I think now is a really good time to buy a house for those buyers that meet certain criteria. Jack Burnette does a good job of creating a list of indicators you can use to find out if now really is the best time to be buying your first home. Here are the main points to consider from his article:
You need a steady, stable job
You have some money stashed away, 3-5 months worth would be good
Your debt is under control
You have a strong, reliable credit history, (a.k.a. good credit score)
You have something for a down payment - 10% is okay, 20% is better
You are ready for the responsibility of owning a home - it’s a good fit for your family
With over 16,000 properties (as of 2/12/2008, a 10-12 month inventory) for sale in the Portland area , buyers have a lot of choices out there and sellers are more willing to “wheel and deal.” It’s an opportunity worth some serious consideration.
What does it mean to become a Certified Earth Advantage Broker? Well, it means I learned a lot about green home-building processes and techniques and how my clients can benefit from that learning. In future posts I will highlight and summarize for you what I came away with and how it relates to buying and selling a home.
Portland’s real estate market is fairing better than many parts of the nation and I’m keeping my fingers crossed that it continues to stay that way. So, What else makes Portland special? Portland seems to rise to the top of several lists highlighting why one might choose to live in or visit our city. Here are just a few:
We are third on Sustainlane’s list for top renewable energy cities and Earthlab Foundation placed Portland on its ten Greenest City List as reported by the Portland Business Journal.
Cooking Light rates Portland it’s number two US city for it’s “supply of outdoor activities, cutting-edge restaurants, and vibrant environmental consciousness.”
Did you know Portland has the smallest park in the world? At least that’s what Wikipedia says.
CNN.com - Travel reports (and every good Portlander should already know this one if they’ve ever bought a book in town) that Powells Books is one of “nine noteworthy bookstores around the country that are definitely worth a visit.”
And for you foodies out there, there are a bevy of sites that note our fine drinking and dining establishments: Suite101.com has a list of the best funky Portland coffee houses, the Oregonian has a Best Bites of 2007 list, GoVeg.com lists us as one of the best vegetarian-friendly cities, and the local blog, Portland Food and Drink, has a listing of menus from many Portland restaurants.
And one of my favorite things about Portland is it’s dog-friendly atmosphere (hence the above photo of my two dogs, Mack and Gracie, enjoying some recent sunshine). Men’s Health Magazine voted Portland second in the nation for best cities for dogs. It seems our open spaces, dog parks and pet amenties are the reasons we rank so high.
And the list could go on. What about you? What’s your favorite thing about Portland?
Have you ever been curious as to what homes are the highest and lowest priced in Portland? Well, my curiousity got the best of me today so I did a quick search on RMLS. My search included only homes in Portland city limits and that included a liveable, detached single family residence. Here are my results:
Lowest Priced Portland Home: A small home in SE Portland with a price tag of $125,000. It’s a 1 bedroom, 1 bath with 692 square feet of living space. Its been on the market since November of 2007 and would make a good investment or first-time buyer home.
Highest Priced Portland Home: A large home in SW Portland with a much bigger price tag of $5,200,000. This house, on the other hand, boasts 5 bedrooms, 5 1/2 baths and a mere 9,914 square feet. This home is for the buyer that wants the best of everything (or perhaps they are kinfolk of the Clampetts) It has been on the market since February of 2006.
If you go outside of Portland city limits, there is a home listed in Sherwood for $9,995,000. Yikes! It has 4 bedrooms and 5 1/2 baths and sits on a massive twenty acres. It was listed in July of 2007 and the price hasn’t been reduced since being listed.
If you want to do some more searching on your own, you can go to the public RMLS (Regional Multiple Listing Service) site or you can sign up on my home search tool and have listings come directly to your email box.
Photo by scol22, used under creative commons license
Good Question.
Portland’s real estate market is fairing better than many parts of the nation and I’m keeping my fingers crossed that it continues to stay that way. So, What else makes Portland special? Portland seems to rise to the top of several lists highlighting why one might choose to live in or visit our city. Here are just a few:
Have you ever been curious as to what homes are the highest and lowest priced in Portland? Well, my curiousity got the best of me today so I did a quick search on 
