Less Is More: Zillow Q2 Report
[PORTLAND, OR]
By: Doug Kearns
The Zillow Q2 home value report confirms what we already know: too much money was thrown at too much speculation. But what else does it reveal about America's changing real estate buying habits?
One interesting nugget was that small homes have been least affected by the poor market. Couple this with the plummeting Mc Mansion sector and it's clear that Americans are clearly stating that they don't want gas-guzzling homes anymore than they want to drive gas-guzzling cars. The creeping price of energy has couples taking a second look at a monthly heating bill that can rival the mortgage payment. While the condominium market may be currently overextended, that forecast is likely to change in the next two years as demand catches up with supply and the nation's energy policy adjusts to changing circumstances. The days of the stand-alone house are quite possibly numbered from sheer economic realities.
Portland provides a good example of smart growth. The Portland "package" for smart growth is a reliance on condominium housing units, a clean efficient rapid transit system, and a commitment to the quality-of-life issues that are missing in other major urban areas. Innovation, small government, low crime, good schools, low taxes, an ethic of self-reliance, and more added value across the board is changing the face of the Northwest from Missoula, Montana to Boise, Idaho to Salem, Oregon.
The reason that the Pacific Northwest is retaining or adding value in this dismal market is that ordinary families and baby boomers have taken their profits and speculated in their own future. Second careers and second homes are often intertwined with the changing nature of what it means to be "retired". Telecommuting, a growing investor class, and the trend towards micro business are doing their part to redefine "location...location...location" in the 21st century.
Zillow supports this changing demographic with four of the top six performing areas in the Oregon/Washington corridor. Unlikely Corvallis, OR leads the pack with 11.2% growth, Eugene/Springfield, OR shows a respectable 6.9% appreciation, Spokane, WA a 6.1% positive and Seattle/Tacoma/Bremerton, WA a surprising 5.3% jump in a market thought to be saturated.
The current market has rarely been better for the average American family with a good credit score. Rates remain affordable, prices have never been more negotiable, and as long as your interest isn't in flipping good value can be had. The American family will be driving the market for the foreseeable future and it pays the prospective investor to take a fresh look at basics before buying.
Portland Condos
By: Doug Kearns
The Zillow Q2 home value report confirms what we already know: too much money was thrown at too much speculation. But what else does it reveal about America's changing real estate buying habits?
One interesting nugget was that small homes have been least affected by the poor market. Couple this with the plummeting Mc Mansion sector and it's clear that Americans are clearly stating that they don't want gas-guzzling homes anymore than they want to drive gas-guzzling cars. The creeping price of energy has couples taking a second look at a monthly heating bill that can rival the mortgage payment. While the condominium market may be currently overextended, that forecast is likely to change in the next two years as demand catches up with supply and the nation's energy policy adjusts to changing circumstances. The days of the stand-alone house are quite possibly numbered from sheer economic realities.
Portland provides a good example of smart growth. The Portland "package" for smart growth is a reliance on condominium housing units, a clean efficient rapid transit system, and a commitment to the quality-of-life issues that are missing in other major urban areas. Innovation, small government, low crime, good schools, low taxes, an ethic of self-reliance, and more added value across the board is changing the face of the Northwest from Missoula, Montana to Boise, Idaho to Salem, Oregon.
The reason that the Pacific Northwest is retaining or adding value in this dismal market is that ordinary families and baby boomers have taken their profits and speculated in their own future. Second careers and second homes are often intertwined with the changing nature of what it means to be "retired". Telecommuting, a growing investor class, and the trend towards micro business are doing their part to redefine "location...location...location" in the 21st century.
Zillow supports this changing demographic with four of the top six performing areas in the Oregon/Washington corridor. Unlikely Corvallis, OR leads the pack with 11.2% growth, Eugene/Springfield, OR shows a respectable 6.9% appreciation, Spokane, WA a 6.1% positive and Seattle/Tacoma/Bremerton, WA a surprising 5.3% jump in a market thought to be saturated.
The current market has rarely been better for the average American family with a good credit score. Rates remain affordable, prices have never been more negotiable, and as long as your interest isn't in flipping good value can be had. The American family will be driving the market for the foreseeable future and it pays the prospective investor to take a fresh look at basics before buying.
Portland Condos
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