In 2008, the Case Shiller Index in Portland dropped from 178 in January to 158 by December. The real estate market was falling while the 2008 Street of Dreams homes were being constructed in Happy Valley. There were six homes in the 2008 show. Two sold, two are actively listed and two were taken off the market according to records in RMLS.
Our Market Tracker graph clearly shows that the market for houses in this price range has almost completely dried up in Happy Valley. According to RMLS there are 12 active listings in the 97086 zip code listed over $1,000,000. The graph is current as of today and are released the first week of each month as part of our Market Tracker Report which is available for any zip code served by RMLS. Note that the one house priced under $1M had sold by the end of 2008.
This brings us back to considering the 2010 show in Forest Heights (97229) on Cresap Lane (photos on photo blog and complete album on our Facebook Fan Page). The show is being billed as houses under $1,000,000 so there is a market for them at this time. The press release also states Renaissance Homes and Hearth and Home, the two builders to sign up so far, will display “presold homes” which indicates that build-it-and-they-will-come has been replaced by buy-it-and-we-will-build. This is a common trend for new construction now rather than building spec houses.
Should the show go on? Yes, I think it should. We don’t go to the auto show to see the cars parked on dealer lots parked around the city. We go to see the cars that we don’t see every day. I doubt the car makers expect to sell a $1M car at the Portland show but they are there because even though we can’t have one for ourselves, we’re willing to pay to see it up close. Moreover it looks like the home show is more in tune with what might sell in this market as our local builders do want to sell sooner rather than later.