Metro Area Housing

The Metro Area Housing Market appears to be in a state of flux; with outlying areas
still seeing price declines while more centrally located neighborhoods are seeing
less declines, or even flat or increasing price trends. The question on many minds
is whether pricing pressure from the suburbs will exert downward pricing pressure on
centrally located neighborhoods and if so how much will this affect prices and
overall market stability? sadly, we won’t really know for sure until it’s history
but many speculate that certain neighborhoods may still be overpriced. Also adding
convolution is the dynamic nature of housing. While some real estate agents in Portland proclaim that
prices are increasing (Average Sale Price) other Brokers are quick to point out that
the houses that are being sold now are larger homes and that is what is driving up
prices rather than a meaningful recovery. One thing that does appear promising is
the fact that larger, more expensive homes are finding buyers in turn means that sellers
are being freed from their existing properties. Early in the economic recovery
there was a higher percentage of entry-level homes being sold. Now that sellers
have sold what may have been their first house they are free to make new purchases
of larger, more expensive residences in more desirable areas. This may be part of
what is causing outlying areas (suburbs) to continue to suffer price declines while
close-in neighborhoods are seeing strong activity from eager buyers.