Portland, along with 16 of the other 20 areas tracked by the S&P’s Case Shiller report, slid in August to 147.2. The drop of about a point still leaves Portland at roughly June 2005 pricing and almost at the same level as the 20 City Composite Index which is at October 2003 levels. Portland has lost 39.49 points since its peak in August of 2007 compared to the 10 City Composite Index which has lost 64.16 points since its peak in July 2006.
The Case Shiller Index measures “Portland Real Estate” as the seven county Portland MSA that includes Yamhill County to the South and Clark and Skamania Counties in SW Washington. It is a bigger area than reported by RMLS.
Portland’s rapid slide flattened around April of 2009. Since that time, the Index has never dropped below 143 or climbed above 151 and has averaged 147.96. We’ll have to watch the local media reports to see how they spin the report but overall I’d call the market “flat.”
Portland was firmly entrenched in the housing bubble in 2005. Do you really believe that we’re destined to simply float around in bubble territory while every other city reverts back to pre-bubble pricing?
Do incomes in Portland support 2005 prices?
It’s hard to define the “new normal” looking forward. Portland is oft cited as being a year behind other markets. If you look at San Francisco (Go Giants), you’ll see that their market bottomed out in March of 2009 (at 117) and is not at 142. Washington DC is at June 2004 pricing. The graphs show that other cities and the broad based indexes have come back in line with Portland. They all started at 100 in Jan. 2000, many peaked over 200 (Portland 186) and then dropped. SF hit bottom and started up, Portland has been flat for a year. Past history won’t make a bit of difference without jobs and consumer confidence.
If you bought the same house today with a $300,000 30 year loan at 4% instead of 6% in 2005 your principle and interest payment would be $366 less per month today. Before your question can be answered you’ve got to ask if 2005 incomes could support 2005 pricing?
“Before your question can be answered you’ve got to ask if 2005 incomes could support 2005 pricing?”
And could 2004 incomes support 2004 prices? 2006 incomes support 2006 prices?
If only more people asked those questions we would have had a lot more company at the professional bubble sitter/watcher convention;O) Unfortunately you couldn’t convince many folks that all this was unsustainable no matter how hard you tried.
And now try convincing folks that there is nothing in the near future to drive prices up…
Yes, I am pessimistic but willing to listen to anyone with evidence otherwise.
If home values are going down why is it that property taxes are increasing?
Why is it that I bought my home for 147500 and the county says it’s market value is 210000. is not the market value what something sells for or is it an imaginary # ?
Property taxes are not just tied to home values. Rates are also tied to bonds and measures. Your property value could go down and your tax bill still go up for that reason. Also Measure 5 in the early 90s said that market value could not go up more than 3% a year so there is a lot of catch up for those values to meet “true” market value.
TODAY, Jan 3, 2011 is the last day to appeal your Multnomah County Property Taxes.