Home Back Issues September 2007 Home sales cool but the value holds steady

Home sales cool but the value holds steady

| Print |  Email
Archives - September 2007
Saturday, September 01, 2007

homesales0907.jpg

STATEWIDE Summer, thy name was volatile. The stock market, the subprime mortgage industry, the national housing market — the “v” word was the one-size-fits-all way to describe the downs and, well, downs that touched nearly every corner of the U.S. economy. But in Oregon’s real-estate market, that interaction comes in a surprising way.

It’s no secret home sales are shrinking. In the Willamette Valley, sales are down by 2.3% from last year; in Central Oregon, they’re down a fanny-spanking 40.2%. In mid-August, the National Association of Realtors hemmed and hawed and then lowered its projections for 2007 home sales for the eighth time this year — as of this last estimate it’s a 6.8% drop compared to last year.

But here’s the surprise: Oregon, and especially the Portland region, is one of the few places in the nation where homes are bucking the median-sale-price depreciation trend. By the beginning of summer, the national median price had fallen 1.8% compared to last year. Not the Portland region. There it was up 9.3%. Eugene, Roseburg and other cities had similar increases.

Why is this happening? The answers really aren’t that shocking. Gerard Mildner, director of Portland State University’s Center for Real Estate, points to several major contributors: an economy that’s driven by exports, whether ag or high tech; regional job growth that’s outstripped the national economy in each of the last three years; land-use laws that prevent over-building and thereby increase the price of developable land.

In other words, Oregon’s a desirable place. And in a national housing market that is — here’s that word again — volatile, steady appreciation makes the state very hot, says national real estate analyst Mike Colpitts.

Colpitts and a team of economists with the independent company Housingpredictor.com regularly crunch the numbers for 250 local markets around the nation. For all of 2007, Portland has made their top 10 buyers’ markets.

“[That appreciation] says a lot for your long-term growth. That’s why Oregon has so many Californians up there now,” he says, laughing.

This is not to say that the Oregon real estate world is a completely happy place these days. Mildner thinks that in Bend — where single-family home construction dropped by 45% — the real-estate boom is kaput. And how long will home sales in other places continue to drop? The only consensus is that it’ll last to the end of the year.

In the meantime, Natalie Middleton with the Regional Multiple Listing Service in Portland says she’s keeping her eye one thing: that appreciation rate.

“We’re holding our breath wondering if we’ll see that begin to change,” she says.                     

ABRAHAM HYATT


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

On fire

March 2014
Tuesday, February 25, 2014
BY JESSICA RIDGWAY

A self-proclaimed “chile head,” John Ford “grows, eats and does everything spicy.” 


Read more...

How to boost web traffic

News
Thursday, April 10, 2014
BY JESSICA RIDGWAY  | OB WEB EDITOR

04.10.14 thumb seo-trafficSEMpdx hosted a workshop this week for entrepreneurs, website developers and others interested in search engine optimization (SEO).  Here are a few tips and tricks aimed at bumping up your search engine rankings.


Read more...

Why I became an educator

News
Tuesday, March 04, 2014
03.04.14 thumbnail teachBY DEBRA RINGOLD | GUEST CONTRIBUTOR

How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?


Read more...

Car ignition recalls and lean product design

Contributed Blogs
Friday, April 11, 2014
04.11.14 thumb gm-gettyTOM COX | OB BLOGGER

The auto industry is starting to share more costs across manufacturers for complex and challenging design work, like new transmission design, and certain new engine technologies. What we’re not yet seeing is wholesale outsourcing of “unavoidable waste” components to specialist companies.


Read more...

From the Editor: The human factor

March 2014
Tuesday, February 25, 2014

In this issue, we celebrate our 21st annual 100 Best Companies to Work For in Oregon project.


Read more...

Buy the book

News
Tuesday, March 25, 2014
2 03.25.14 thumb bookshopBY VIVIAN MCINERNY | OB BLOGGER

Oregon is home not only to many fine writers but also several accomplished small publishers.


Read more...

Tech makes the world go round

Contributed Blogs
Thursday, March 20, 2014
03.20.14 thumb internetBY JASON NORRIS | GUEST BLOGGER

I don’t think anyone can (or should) remember what it was like to get things done without the internet. This milestone in technology has certainly benefited brick-and-mortar companies and subsequently launched a new era of businesses.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS