Click here to view the 2007 NAR report for Portland prices and trends in PDF.
Some points are summarized here. But do read in it's entirety. Lots of charts & pictures to entertain as well... :0)
- The decline in new homes actually helps control and balance the inventory of unsold/listed existing homes
- Despite media reports, the Portland area decline in home prices are neglible.
- If there are FHA reforms, it could lead to a boost in sales using FHA loans (generally under $304K - see current HUD/FHA limits by county here)
- Average 1 year appreciation (2007) in Portland was 5.2%. 3 year appreciation was 46.1%.
The summary, starting on page 11 of the PDF report, indicates that if mortgage rates don't rise to above 7.5%, our local market appears to be poised for steady growth - even if not the over-inflated and unsustainable boon of previous years. The low mortgage rates as of the report (Oct 2007) had not yet resulted in marked consumer confidence. But I believe that is happening even now. It might also have something to do with the coming of spring - traditionally a good time to buy and sell.
All the tools for a continuing strong market and our equity growth are ours for utilizing. Low rates, inventory, motivated sellers. What is causing the wary or cautious lead up to a happier media face on the housing outloook is consumer confidence. Yet our local job growth is still positive, and economic trends appear to be the wind - tho gentle - at our backs.
Also, in the March 2008 issue of Realtor® Magazine, is the news that national sales for 2007 totaled 5.7 million... the fifth best on record. Not bad for a "media doomed" industry.
It's much as I said in my Jan 23rd post - our financial housing outlook lies within ourselves - we the consumers.
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