2008 -- What to Expect in the Portland, Oregon Real Estate Market

I like to tell people that my crystal ball broke a few years ago, and as such I really can’t see into the future.

But, at the close of 2007 I feel like trying my hand at forecasting what might be expected in the Metro Portland area for the New Year – or at least in the next 3 to 6 months.

First, the condo market in the Downtown area is annoying me at the moment. As it would seem, there are also quite a few developers and builders with broken crystal balls. When the market was strong they borrowed and broke ground. Only thing was they didn’t see the lender hiccup in the 3rd quarter. So, in the midst of some really nice condo projects, they panicked. Rather then keeping the condos live and active, they pulled them turning for-sale into for-rent. Which is a pity. I have two buyers who would buy in a heartbeat . . . but they’re looking at a limited market, rentals instead of units for sale, and self-imposed higher prices due to lack of supply. Gee thanks!

Prediction: The downtown condo market is losing on some quick sales now. They should return to listing the units and allow first-time buyers a chance at Downtown living.

Second, the higher-end homes are having some major price adjustments. But, this is due to the original list price. A home in the first-time buyer range doesn’t have the luxury of coming off price $30,000. A higher-end home does. The higher-end home market is still seeing some very nice appreciation. Lake Oswego/West Linn, for example, has a 5.1% year-to-date appreciation average. But, pending sales are DOWN 12.3% year-to-date.

Prediction: Higher-end homes are going to look attractive to buyers when prices continue to drop.

Third, homebuyers need to understand that real estate is MARKET driven. And the “market” is local . . . not National! While such things are averages, and stats love to be broadcast on the evening news, it’s not a phenom with foreclosures everywhere. In fact, the Metro Portland market hasn’t seen plummets as other markets have. Housing STILL costs less then other West Coast markets (Seattle, San Diego, LA, San Francisco) for example.

Prediction: Homebuyers will realize that Metro Portland is a great market, a good investment, and a great place to call home. They will be out this Spring!

Because there is such a cyclical nature in some real estate markets, buying trends can slow down in the late fall, winter and early spring – due to the holidays, and weather. This is true in Portland, Oregon.

So my prediction for the upcoming year is: Our LOCAL market will begin with a lot of strong buyers who will be looking for a good deal.

By the way, it’s always a good time to find an EXCLUSIVE BUYERS AGENT and start the buying process right!! Don’t forget to visit me online for BUYER TIPS:

Visit me on the web: EBA Portland

HAPPY NEW YEAR!!