Bad news sells, and sells well. And, at the moment, real estate news seems to be selling very well! However, the true state of the housing market cannot be distilled into a seven-word headline. Like most economic issues, it is complex—and to some extent, a matter of perspective. And, as the old saying goes, real estate is local. 

Locally, there is definitely positive news to celebrate. From the emphasis on foreclosures and subprime loans in the national news, you might think that every other house is going into foreclosure. However, the Portland metropolitan area foreclosure rate is low (0.602%), and out of 100 metropolitan areas nationwide, we are ranked 73rd in foreclosure rates [1]. This is one list where it is best not to be number one!

In addition, Portland is one of only three markets nationwide that have shown positive home appreciation over the past 12 months (Seattle and Charlotte, North Carolina are the other two markets)[2]. Our average sales price increased 6.3% in 2007 in the Portland metro area. [3]

This positive news about our local housing market means that it is a good time for buyers to buy—and the fact that our market continues to enjoy positive appreciation is good news for sellers. Real Estate Insider surveyed Realtors® out in the field to find out their thoughts about the Portland area housing market.

“My advice to buyers is to get in now while there are great prices, a swollen inventory and low interest rates—a combination of factors that won't last much longer!” notes Debi Laue, a broker with The Hasson Company.

Christina Griffith, a broker with Windermere/Baldwin Properties, advised potential buyers to do some research. “Call a reputable lender and see what you can qualify for because it's a great market to be a buyer. Interest rates are near the lowest they've been since the 80s, and our inventory is high enough to give you plenty of options to choose from.”

For sellers, news of a high inventory—as of January, there was 12.8 months worth of inventory on the market [4]—may seem daunting. This is when it pays to hire a local Realtor®. Their expert advice can be crucial to a successful sale of your home.

“My advice to sellers in this market is to stage perfectly, and price aggressively,” said Laue.

Realtor® Jeff Whiting, with John L. Scott, Inc., pointed out that it is important that sellers be knowledgeable about their neighborhood. “All areas in Portland are in their own ‘mini-market’ within the Portland metropolitan market, so it is important to be informed what is going on in your neighborhood. At the end of the day the best home for the money will be the one that sells.”

It can be a confusing time to be a buyer or seller—there is so much news focused on the real estate market, and every story looks at it from a different angle. Give your local Realtor® a call. This is their job, and they’ve seen the market go up and down over the years. They’ll help you look beyond the headlines—and hopefully towards a new home of your own!

For additional real estate resources, visit www.pmar.org.

[1] RealtyTrac

[2] Standard and Poor’s/ Case Shiller. “Home Prices Indices”

[3] RMLS™ December 2007 Market Action

[4] RMLS™ January 2008 Market Action