Portland City Center Entry-Level Condo Report
Upscale Neighborhoods Increase Share Of Entry-Level Condo Sales
Portland’s Nob Hill and Goose Hollow are still the places to go if you are looking for an entry-level condo in the city center, but they are no longer the only places. Whereas sub-200k sales in in the first two quarters of ’08 were essentially limited to Nob Hill condo conversions and more dated developments on the fringes of Portland’s city center, The Pearl District and South Waterfront now contribute roughly a third of the sub-200k sales. McCormick Pier, The Lexis and The John Ross in particular have gradually worked their way down into the entry-level category.
More Choice, More Bang For Your Buck
As the spectrum of entry-level neighborhoods has widened, so have the choices for buyers. Less than 200k is now sufficient for 850 SF at a waterfront development in the Pearl or 650 SF on the 10th floor of an upscale South Waterfront tower. Here’s a sampling of recent sales in the entry-level category:
-McCormick Pier, 2-bedrms, SOLD for 177k at less than $200/SF
-John Ross Loft, 722 SF, SOLD for 170k
-Hilltop 2-bedrm condo, more than 1000 SF, SOLD for 178k
Entry-Level Category Benefits From Intrinsic Price Floor
If you are concerned about value rtention, entry-level condos can be a good choice for you. Prices have come down for entry-level condos, but not as much as their counterparts in other submarkets, nor have entry-level condos been battered like their higher-priced brethren. On average prices are down by about 10%, at least 5 percentage points less than the median for these neighborhoods. This is largely the result of more intense competition in the entry-level arena as well as the presence of an intrinsic price floor i.e. price drops are likely to flatten, the closer you get to zero.
