The Good News About Our Housing Market

The following article is from Tuesday April 1st, 2008 The Oregonian.


The Oregonian's headline asserted that "economists expect worse is to come" ("Portland home values take first dip," March 26). But the story includes Lake Oswego economist Bill Conerly saying that he isn't certain how much home values will drop because so much of the market is driven by buyers' perceptions.
What do you suppose sensational headlines and dour front-page predictions do to buyers' perceptions? The biggest challenge facing Portland's housing market is uncertainty among buyers.
Most buyers aren't housing experts. So before they make a decision they want to feel assured that it's a good time to buy a house. Unfortunately, in a competitive news environment, headlines sell papers, and bad news sells even more.
The truth about our housing market is that home values are still holding strong in the Portland area. The Oregonian acknowledges this (once you read past the headlines), as the same story ultimately admitted that the decline is "such a slight drop, economists consider values to be essentially flat" and that "[home] values are leveling off."
In historical perspective, interest rates are low right now, inventory is high, sub-prime credit problems and loan defaults are far fewer in Oregon, and our housing market is faring much better than the rest of the country. Plus, people still want to move here, creating continued demand.
Housing experts agree that the best time to buy property is not at its peak in value, but in slower cycles. People who bought two years ago did it on the sellers' terms. Today's homebuyers with good credit have ample access to home loans at great rates, and they're getting more home value for their money than they've been able to get in recent memory.
Is the nation's housing market hurting? In some areas, absolutely. But Portland's market still has quite a bit of good news in it, and The Oregonian's front-page headlines fail to give readers a solid understanding about what is really happening locally and what is available to buyers, whether they are looking for their first home or their next home.
If you've been thinking about home ownership, look around and ask an expert you trust. Peaks and dips are a natural part of every housing market everywhere. Waiting until the market takes off again, as it always does, just means you'll pay more for less home value.