A Sign Of The Times For Real Estate in Portland

Posted on 10/8/08 12:45 PM

As Portland’s Real Estate Market Continues to Slide, Desperate Sellers Are Increasingly Commonplace

Portland’s real estate market is now down almost 7% from it’s peak in August 2007. Sellers are facing increasing difficulties and cries for help are more frequently ringing of despair. Reflecting increasingly trying circumstances among sellers, the number of properties included in this month’s Desperate Sellers Database climbed by about 8%, now totalling 160 properties. More than half of these properties have been sitting on the market for more than 6 months and prices have typically (i.e. median) been reduced by 10% or more.

Former Mortgage Broker’s Home Takes The Prize For “Most Desperate Seller”

Not too long ago this prestigious 7000 sq. ft, 6-bedroom Mt. Tabor home was included in the National Register of Historical Places. It is now bank-owned and has become the mockery of several Portland real estate blogs. The property went on the market in May 2007 for 1.8M. Fifteen months later it is now priced at 899k, a whopping 53% less. Eventually the bank stepped in when the owner, a local mortgage broker, was unable to…uhmm…meet his obligations. If that ain’t a sign of the times…

Half A Dozen Desperate Sellers At The Elizabeth Lofts/Meriwether

McCormick Pier, riddled with foreclosures, is no longer the only development with a substantial concentration of Desperate Sellers. Both the Elizabeth Lofts in the Pearl and The Meriwether in South Waterfront now feature half a dozen Desperate Sellers. In total just under 40 Desperate Sellers are now active in the Pearl District, marking a 10% jump from last month’s count. More than 15 of them have reduced their asking price by 15% or more since listing start. Roughly 2/3 of these listings have been on the market for six months or longer.

“No-Drops” Reputation Of Close-In Neighborhoods Waning

Portland’s close-in neighborhoods, particularly on the east-side have long been the city’s poster child for a healthy and strong real estate market. Overall these areas are still posting gains, but sellers have not been immune to the market shift. The inner southeast now includes 60 desperate sellers, 10 more than a month ago. Desperate Sellers are especially prevalent in Alameda (NE) and Richmond (SE), where roughly 30 Desperate Sellers, predominantly in the 400-500k range, have reduced their asking price by more than 15%.

Check out the Desperate Sellers Database. Talk to me about other ways to skin the cat.