Portland Condo Foreclosure Round-up

Posted on 08/15/08 7:30 AM

Foreclosures have remained somewhat of a spotty, manageable phenomenon in Oregon, however the distressed property syndrome appears to be picking up the pace. According to RealtyTrac, the total number of properties in Oregon with at least one foreclosure filing is down 4.5% since June, but up almost 200% since July 2007 (vs. national average: 55%). Roughly 2,000 Oregon properties or 1 in every 812 households face a foreclosure filing of some sort. Compared to other regions in the U.S., the overall the situation still isn’t exactly overwhelming. Arizona and California are looking at roughly 1 in every 200 households, the national average is 1 in every 464 HH. Click on the map below to put things in perspective.

1/every HH-rate with Foreclosure Activity

So, what does the situation look like for condos in Portland? High profile condo developments such as the Waterfront Pearl have made “distressed” headlines recently and the pressure is certainly mounting for the John Ross. Foreclosurepoint puts the number of Portland condos currently in foreclosure at about 170, that’s a couple more than Seattle (120), but a long way off from other West Coast cities such as San Diego (3,500), Sacramento (600) or Los Angeles (800). Condo foreclosures are most prevalent in Portland Zip codes 97209 (Pearl/Old Town/NW) – accounting for roughly a quarter of all condo foreclosures – followed by 97239 (South Waterfront/West Hills) and 97201(Downtown). Here’s an overview of which condo projects are getting hit the hardest:

Foreclosure Round-Up for Downtown/Pearl District/South Waterfront

McCormick Pier continues to dominate the list. The numbers have picked up slightly at the John Ross and the Meriwether, but it’s the Old Town Lofts and Riverscape that have seen the biggest jump in recent months.

Bear in mind…there are several stages to foreclosure filings, not always does a property end up being foreclosed upon. Looking at the number of bank-owned properties provides a more accurate gauge of how much damage is being done. At this point in time roughly 200 properties (condos +SFH) are considered bank repossessions (REO) in Oregon, approximately 50 of them are located in SE,NE, N and W-Portland (according to RMLS). That’s not a whole lot, especially when contrasted against the national average of almost 1 REO in every 5 homes listed for sale (by the National Assoc. of Realtors), bringing the national total to a whopping 750,000! Stay tuned…