Distressed Properties. Foreclosures. Short Sales. Those are the terms that characterize much of the real estate press these days. What does all this mean to market value here in Portland or Lake Oswego Oregon?
Fortunately for many our home values did not surge like many areas of the country. Oh yes they did climb from 2004 – 2007, but climb was an easy steady tick. Which is why our bubble is so much smaller than the rest of the nation. Our past 12 month median sales price for the metro area is down 6.9%. There are pockets that are harder hit than others, but we are not even in double digits as a whole.
Yes, we have many home sellers that are in challenging times to say the least. More homes are coming on the market than are selling. It is not just adjustable rate mortgages that have put sellers into the market, maybe that much has more to do with the local job market. (And those in Salem just raised business & individual taxes again! What are they thinking!) If Oregonians don’t have a job, they cannot afford their mortgage, let alone pay more taxes.
More homes are coming on the market, and many may be due to our shrinking employment options. There lies the price crunch. More home on the market = lower market value.
Motivated Seller – one who will allow their agent to ‘advertise’ seller motivated. This is a seller that wants offers and possibly can take a big hit and not go through a short sale and damage credit.
Short Sales – This is a seller that has tried to sell and has now lowered the price again, and again, needing an offer to take to the bank to start the negotiations.
Foreclosures – Bank owned property that the bank really doesn’t want but had no choice once the timeline was at its end.
People are worried that their homes won’t regain value. I don’t think there is any doubt that they will, though not at the up tick pace we saw a few years ago. Many think the short sale is the answer to their devalued home. Many more need to rethink the purpose of their home. We got into trouble because many home owners were using their house as a bank. Borrowing from it, by refinancing it over and over. The whole idea of home ownership is to build equity not spend the equity.
After so many people have gotten in to trouble buyingMcMansions (there is a glut on the market right now), I try to remind buyers today of the many stages in home ownership. If you are a first time buyer, you don’t go shopping for your dream home the first time up to bat.
If you are in the market to buy or sell your home. Give me a call 503-495-5231. I would welcome the opportunity to earn your trust.
