Desperate Sellers On The Rise
The number of Desperate Sellers continues to climb as this month’s update of the Desperate Sellers Database reveals. The Database currently contains almost 150 properties in Portland’s close-in neighborhoods that are showing some signs of Despair. To access the Database and find out more about the methodology click here. To read last month’s summary click here. Here’s the breakdown by area:
Pearl District/Old Town - Continued buyer-hesitation, summer blues and the addition of apartment inventory from high profile developments such as the Asa provide some explanation why the number of Desperate Sellers in the Pearl District increased more than 15% over last month’s count. More than two thirds of the properties tracked in this area have languished on the market for more than six months. On a positive note, the median price drop (orig. ask vs. current) has improved somewhat since August. Desperate Sellers have typically reduced their price by 12%, roughly a quarter of all sellers have dropped more than 20%. Given the number of foreclosures at McCormick Pier, this waterfront development remains a stronghold for Despair. However, Despair also appears to be creeping in at higher-end developments such as The Elizabeth and The Pinnacle. The Pearl District takes this month’s Desperado Prize – the award for the property with the biggest price drop. If you are looking for a bargain in the million dollar penthouse range, you may want to check out this darling at a 40% discount over the original list price.
Downtown/South Waterfront - In spite of the mounting pressure on The John Ross and The Atwater in particular, this area actually provides some of the bright spots – however temporarily – in relative terms. The number of properties tracked in this area is down a couple of notches, as is the number of properties that have been on the market for more than 6 months. The median price drop (not including developer inventory) remains at 12%, roughly the same as in the Pearl District. Riverplace and The Strand have taken over the realms from The Meriwether, being the two buildings with the most Desperate Sellers. Although the median price (for properties tracked) is in the mid 500s, there are several opportunities in the entry-level category as well.
Inner Southeast - the infamous no-drop zone appears to be showing signs of weakness. The area still remains one of the healthiest parts of town, however, this month’s indicators (relevant to this Database) are slightly less favorable for neighborhoods such as Richmond, Laurelhurst, Buckman and beyond. The number of properties tracked has remained stable at 50, however the median price drop is now essentially in line with the Pearl District. Roughly a fifth of all Sellers have reduced their ask by more than 15%, with a 25%-drop setting the record for this area. The number of properties on the market for more than six months has also picked up, now essentially representing half of the properties tracked in this area. Desperate Sellers are most prevalent in Richmond, up two from last month’s count.
Inner Northeast – Moving pretty much in tandem with the Inner Southeast, properties tracked in the northeastern section are witnessing a mild increase in price reductions. At 10%, the overall the median price drop still remains the lowest among the four areas tracked by the Database. Beaumont-Wilshire continues to hold on to the top position in this group, with 13 Sellers facing Despair of some sort. Median prices (for properties tracked) are considerably higher than in the Southeast, but essentially unchanged from last month.
Check out the Database for details and shoot me a note if you find something that piques your interest. Most importantly…don’t overpay!
