Wednesday, December 10, 2008

Best quote from Ryan Frank's chat


Ryan, when do you think the Portland real estate market will hit bottom? Or has it already?

Ryan Frank:
It has not hit bottom. There's no question about that. Anyone who tells you otherwise has some swamp land to sell in Florida. That said, you can find decent deals out there now. So it can be a good time to buy for some. But the bottom is not here. I did a story last week about when we may hit bottom. He's suggesting that may come next fall. Based on historical price growth, prices are still inflated and the inventory is still very high.
The core problem is the supply of homes for sale far outpaces demand and there's a large shadow market that will come online for sale once they think there's demand again. So, short answer: Bottom is not here but may come in the third or fourth quarter next year.

Price is a function of supply and demand. Simple and spot on correct. You can read the rest of the chat on his blog.