Was Half A Million Dollars, now 300k
Among the almost 300 properties included in the Desperate Sellers Database, a record number have dropped within reach of the first-time home-buyer, rendering the 300k price range the largest single price category in the Database. With price reductions of 20% or more constituting the norm for Database-properties in places such as Happy Valley and select Pearl District and South Waterfront condos, a substantial number of properties in the 300k category had not long ago been priced in the high 400s, and several onwards of half a million dollars.
One of the many Database-homes now priced in the 300s
Banks Remain Driving Force Behind Price Reductions
Bank-owned properties now represent somewhere between 20% and 25% of all sales in the Portland-metro area, noticeably increasing the pressure for conventional sales and steadily driving price points down across the board. West Coast Bank, Citi Mortgage and U.S. Bank have been among the most active within the Database, granting significant reductions after repossession. In the wake of these developments, resistance appears to be breaking down among more and more “regular” sellers as well. Roughly 40 “regular” sellers (within the Database) have dropped their prices by more than 25% since listing them for sale.
Despair On The Rise Among South Waterfront Sellers
In the aftermath of Portland’s highest profile condo auction to date, despair seems to be rising among South Waterfront neighbors, notably the Meriwether. A 2-bedrm condo that was listed in the 800s at the beginning of the year is now available in the mid 400s, courtesy of the bank. Overall, Meriwether condos took three of the spots among the top ten price reductions for condos in this month’s update of the Database. Although resale and foreclosure activity at the neighboring John Ross has slowed down in recent weeks/months, time is clearly running out for the development consortium, creating interesting opportunities for the developer-owned (i.e. non-re-sale) segment.
