Portland State University just released its July 2007 edition of the PSU Center for Real Estate’s Quarterly Real Estate Report. The report covers both the national market and local market. A good deal of the report discusses Measure 37 but I think for this blog and our typical disucssion, the real meat starts on page 24 with, “Housing Price Appreciation in the Portland Region: A 25-Year Retrospective.” It is a historical look, not looking to the future at all. 6.5% annual appriciation equates to a doubling of home prices every 11 years.
Things start to get more interesting on page 30, “Local Housing Market Update.” The median price of existing detached homes in the Portland metropolitan area (excluding Vancouver) continues to rise. The median home price increased by 5% from $294,000 in the first quarter of 2007 to $308,000 in the second quarter. Over the entire year, the median price increased by 7%, which is a sharp decline in appreciation when compared to a 20% increase between the second quarter of 2005 and the second quarter of 2006.2 While the Portland housing market has cooled off from last year’s feverish pace, it continues to experience shows healthy appreciation… Prices of new detached homes increased only 4% from the second quarter of 2006 to the second quarter in 2007 compared to 23% in the previous year.
However, as a sign of recovery from this trend, the past quarter saw a 12 day decrease average days on market. Days on market decreased from 58 days in the first quarter of 2007 to 46 days in the second quarter.
It only seems fair to end with a quote from the introduction:
We see the role of the Quarterly Report as a place to publish unbiased analyses of local and national real estate trends and policy issues. As a quarterly publication, we take a longer view, rather than repeating the function of a daily newspaper or a weekly magazine.