Sunday, October 24, 2010

A Clear Capital Warning for Portland Prices

The median home price in Portland at the end of the summer was an even $250,000. If prices here (year over year) lost 5.6%, the median loan owner just lost $14,000 dollars of equity. If the median home price in PDX lost 2.8% in the last three months alone, that means loan owners have lost $7,000 of equity since June! The simple math and latest research shows that we seem to be accelerating in our price decline.

Can a family rent comfortably for $14,000 - $28,000 per year right now in Portland? What does that answer mean with respect to the real cost of "buying" and "owning"? Buying with cash, and renting money from a bank via mortgage are two very different risks right now. How confident are you that you or your significant other will not lose their job/income?

Could you afford to sell your house if you needed (or wanted) to move?

Where and when is the bottom for Portland?

Only time will tell...

"This special Clear Capital Home Data Index (HDI) alert shows that national home prices have declined 5.9% in just two months and are now at the same level as in mid April 2010, two weeks prior to the expiration of the recent federal homebuyer tax credit.

This significant drop in prices, in advance of the typical winter housing market slowdowns, paints an ominous picture that will likely show up in other home data indices in the coming months."

" "Compared to the softening quarterly gains we saw last month, the latest results of our Home Data Index indicate a substantial price correction has taken place in many major markets," said Dr. Alex Villacorta, Senior Statistician, Clear Capital. "With the effects of the recession still being felt by home buyers and sellers, the lack of demand is causing strong markets to lose their upward momentum, while sending weak markets into double dip territory.

"The recent halt of foreclosures by the top mortgage servicers will certainly help to slow the rate of new distressed inventory on the market, but any positive effect this will have on the market will be countered by the traditional winter slowdown that seems to be starting early this year," added Dr. Villacorta."


Clear Capital™Reports Early Seasonal Slowdown as U.S. Home Prices Decline and Weaker Markets Head for Big Chill

Special Release: Clear Capital™ Reports Sudden and Dramatic Drop in U.S. Home Prices

Here Are the 15 US Housing Markets at The Forefront ff the Double Dip