NAR released this story today:
Tighter Lending Standards Good For Housing, But Will Dampen Sales
WASHINGTON, April 11, 2007 – Tighter lending criteria and fallout from the subprime loan debacle will lead to a healthier housing market with greater assurance that owners can handle mortgage adjustments, but higher loan standards will slow the housing recovery, according to the latest forecast by the National Association of Realtors®.
CNN goes on to report that prices dropped in 73 metro areas in the country. Take a look at the list of 1 year appreciation. Oregon gets three of the top 15 spots (Salem #5, Portland-Vancouver-Beaverton # 13, and Eugene-Springfield #14).
This leads us back to the question: is Oregon real estate still safe? If national home prices drop for the first time in 38 years, what do we do? Personally, we’re seeing new listings sell faster than older listings because they are coming on the market accurately priced for the current market, not the hangover effect of the previous market.
I should mention on the “put your money where you mouth is” front, we signed a contract for the purchase of a property in NE Portland yesterday.