Portland’s High-End Home Sales Grind To A Halt
Sales on Portland’s million-dollar homes had already slowed markedly in 2008. As of Q1/2009 the pool of buyers has shrunk even further yet. Of the 550 million-dollar-homes that were listed for sale in the first quarter for the Portland metro area, a mere 30 sold, resulting in a record 55-months of inventory and rivaling sunbelt hot-spots such as Phoenix. The number of million-dollar sales is down 50% from a year ago (Q1/2008) and trails the first quarter of ‘07 by more than 65%. Lake Oswego and the West Hills supply the bulk on the inventory, together these sections accounted for 19 sales over the last three months.
Most Million-Dollar Homes Sell For 100k Less Than Asking Price
Not surprisingly few buyers end up paying the full price. In fact, the majority of million-dollar homebuyers in Portland walked away with a 100k discount over the most recent list price, with more than a third of all sellers settling for discounts in excess of 150k. Here’s a sampling:
-8,000SF craftsman in Portland Heights, listed at $2 M, SOLD for $1.74M
-4 -bedrm colonial home in NW Portland, listed at $1.35M, SOLD for $1.25M
-”The Hamptons in Lake Oswego” on a 1 acre property, listed at $2.79M, SOLD for $2.65M
More Price Cuts Likely As Jumbo Loan Defaults Rise
According to the March mortgage report from LPS Applied Analytics, foreclosure starts have jumped by 221% among jumbo loans made to prime borrowers, or those with good credit. That’s more than among any other loan type. Not only are foreclosures expected to place downward pressure on pricing, demand for million-dollar homes is stifled by increasingly limited availability of jumbo loans. Very few lenders are originating or refinancing jumbo loans, as jumbos are not guaranteed by a government-backed mortgage agency.
More supply, less demand…
***Related Posts***
Best Of Bank-Owned Luxury Homes
Was Half A Million, Now 300k
This entry was posted on Thursday, April 30th, 2009 at 12:56 pm and is filed under 503 - Commentary. You can follow any responses to this entry through the RSS 2.0 feed.
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Portland Has A 55-Month Supply Of Million-Dollar Homes
Portland’s High-End Home Sales Grind To A Halt
Sales on Portland’s million-dollar homes had already slowed markedly in 2008. As of Q1/2009 the pool of buyers has shrunk even further yet. Of the 550 million-dollar-homes that were listed for sale in the first quarter for the Portland metro area, a mere 30 sold, resulting in a record 55-months of inventory and rivaling sunbelt hot-spots such as Phoenix. The number of million-dollar sales is down 50% from a year ago (Q1/2008) and trails the first quarter of ‘07 by more than 65%. Lake Oswego and the West Hills supply the bulk on the inventory, together these sections accounted for 19 sales over the last three months.
Most Million-Dollar Homes Sell For 100k Less Than Asking Price
Not surprisingly few buyers end up paying the full price. In fact, the majority of million-dollar homebuyers in Portland walked away with a 100k discount over the most recent list price, with more than a third of all sellers settling for discounts in excess of 150k. Here’s a sampling:
-8,000SF craftsman in Portland Heights, listed at $2 M, SOLD for $1.74M
-4 -bedrm colonial home in NW Portland, listed at $1.35M, SOLD for $1.25M
-”The Hamptons in Lake Oswego” on a 1 acre property, listed at $2.79M, SOLD for $2.65M
More Price Cuts Likely As Jumbo Loan Defaults Rise
According to the March mortgage report from LPS Applied Analytics, foreclosure starts have jumped by 221% among jumbo loans made to prime borrowers, or those with good credit. That’s more than among any other loan type. Not only are foreclosures expected to place downward pressure on pricing, demand for million-dollar homes is stifled by increasingly limited availability of jumbo loans. Very few lenders are originating or refinancing jumbo loans, as jumbos are not guaranteed by a government-backed mortgage agency.
More supply, less demand…
***Related Posts***
Best Of Bank-Owned Luxury Homes
Was Half A Million, Now 300k
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This entry was posted on Thursday, April 30th, 2009 at 12:56 pm and is filed under 503 - Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.