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Oregon
New businesses moving to the state produced record high home prices in Oregon, but the times have been changing in Oregon real estate. Housing sales have slacked off. Home auctions are becoming more common place and the once burgeoning economy is beginning to weaken.
Oregon has been high on the list with many appreciating housing markets for more than three years, but the boom days are long over. A glut of unsold homes is depressing prices, and the growing inventory will have a major impact on the state’s markets, according to the Housing Predictor forecast.
Don’t look for Oregon housing markets to crash any time soon, however, as newcomers continue to move to Oregon for jobs and buy homes to have a roof over their heads.
In Portland the over abundance of homes listed for sale has slowed the market. New construction has slowed to a crawl as new home builders offer incentives to rid their inventory. Many say they are selling homes at less than what it cost them to build.
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| City |
Forecast |
| Portland |
− 8.9% |
| Eugene |
− 8.0% |
| Salem |
4.7% |
| Medford |
− 11.5% |
| Corvallis |
− 7.3% |
| Bend |
− 7.9% |
A pro-active business environment has attracted many new companies to Portland. But the national housing recession is making inroads as more and more potential home buyers uncertain over the economy become leery of the market. Housing Predictor forecasts Portland will see housing deflation in 2008 at an abrupt 8.9% on the average home.
Outside of Portland in Corvallis many major employers have attracted newcomers to the area in addition to Oregon State University. But the market, which had raced upward for years, is falling with fewer home sales.
The credit crunch has made it more difficult for many hopeful buyers to obtain mortgages. Corvallis will see declining sales through the year and see average homes decline 7.3% in value in 2008.
In Eugene, which has exploded with growth in the last five years with new developments, the housing market has also slowed. But a major new employer is moving to Eugene to supply a breath of fresh air to the economy.
The housing slow down has resulted in layoffs at lumber companies, which is one of the region’s largest employers. The down turn has effected the area’s home prices, and is readying to send Eugene homes 8.0% lower in 2008, Housing Predictor forecasts.
Down Interstate 5 in Salem an unprecedented real estate boom has hit with double digit appreciation. But prices have been catching up with Portland, and would-be buyers unsure over the state of the economy have begun to turn nervous. However, sales of homes are still closing at a relatively healthy pace and won’t slow down completely.
Appreciation should ride this market through at least 2008 on the way to a less powerful 4.7% in appreciation for the year.
In Medford home prices have been plummeting at nearly as fast a pace as they went up during the real estate boom. The inventory of homes for sale is growing almost daily and the time to sell a home is increasing.
The foreclosure market in Medford is growing, making it a buyer’s bargain market. Medford will suffer through 2008 and see home prices decline 11.5% on average by year’s end.
In Bend the second home market has changed radically. Bend had been one of the most sought after vacation markets in the nation for snow skiing enthusiasts, but sales are off and are forecast to remain that way through 2008, deflating prices 7.9%.
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