Portland Metro/Tigard Real Estate News

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Wednesday, October 17, 2007

Oregon Market


A booming local economy has rained appreciation in the Oregon housing market and the faucet doesn’t look like it’s turning off for some time yet.

Although sales of homes have slowed in the Portland area, the national trend of a depreciating housing market hasn’t hit Portland. Prices are up and should stay that way through the year’s end. The median price for a home has hit $241,000 and Housing Predictor now forecasts that Portland will see healthy appreciation of 6.7% in 2007.

Driven by a healthy job market, housing prices in Portland have more than doubled in the past decade. Oregon is the third fastest growing state in the nation.

Local Markets at a Glance
City Median Price Forecast
Portland $ 241,000 6.7%
Eugene $ 206,000 5.2%
Salem $ 190,000 6.4%
Medford $ 158,000 4.5%
Corvallis $ 153,000 5.8%
Grants Pass $ 141,000 4.5%
Bend $ 217,000 4.2%

In Salem the median price has reached $190,000, and home sales have slowed after hitting nearly 16% in appreciation in the last year alone. Salem housing, however, is still moving at a relatively brisk pace and is projected to see appreciation of 6.4% in 2007.

However, in Eugene, which has grown more in the last few years than the previous twenty, the community has attracted new businesses and jobs. Like the rest of Oregon, the market has slowed. The median price for a home in Eugene is $206,000 up more than 50% over the past three years. Eugene is projected to finish 2007 with an average of 5.2% in appreciation.

In Corvallis, where homes are less expensive with a median of $153,000 the market will see less activity in 2007 on its way to a 5.8% increase in average prices. Medford is fairly close price wise with a median at $158,000. Medford will see a modest 4.5% in average appreciation by year’s end.

On the roaring rapids of the Rogue River, Grants Pass is now a community of slightly more than 11,000 residents and it has had its own real estate boom. Grants Pass has doubled in size in the past ten years as more and more people have sought out a better quality of life, fleeing big city congestion and pollution. Its housing market boomed, but like the rest of Oregon has slowed down. Grants Pass will have to pass on it’s double digit days of appreciation in 2007 and settle for 4.5%.

As a growing snow skiing destination and second home market, Bend, Oregon has become a vibrant community with many new homes and condos. Bend will see a more modest year in home sales throughout the rest of the year and finish 2007 with a projected 4.2% average in appreciation. Bend’s median housing price has topped $217,000.

Oregon has suffered from being one of the weakest west coast states economically, but the state’s economy has improved drastically with an increase in businesses and new employers. Many new residents have been attracted for its lower cost of living, high employment rate and lower priced homes. But now the price of housing has also changed.

Source: Housing Predictor LLC 2006-2007

FYI: So far this year, Portland metro has appreciated on average 7.8%. They're pretty close!


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