House prices in Portland

[potone]

I have been renting in Portland for a number of years, and I am thinking of buying a house for the first time. I know that the housing market nationally is slowing down, but I am wondering if this is a good time to buy in Portland. I have a modest income, so I do not want to buy a house, only to have the market collapse. Does anyone here have expertise in this area and could advise me?
Potone

[oregonjen]

1. The Oregonian had info the other day on this subject

My brother is renting as well and is waiting until the housing market bubble bursts. It looks like it will happen in about 6 months or so. I would go to oregonlive.com and do a search for the housing info they presented. I can't remember the day it was, but it was a week or so ago. Hope that helps.

[potone]

2. Thank you!

I will do this. I had heard about this article, but I have not read it. I have been told the the market is unlikely to collapse here, because so many people are still moving here from California, but I tend to be conservative in my own financial matters, or, I guess I should say cautious. I would appreciate any other replies to my question.

[Tyo]

3. My 2 cents

If your income is pretty stable and you feel your job is secure and you do not want to or think you will have to move for the next few years I don’t know that there is really much point in waiting. Even if the market does decline after you buy, you won’t really have lost anything unless you have to sell for some reason. Look at the stats for house prices over the last 50 years and you’ll see that while there are dips, in the long term real estate appreciates.

I don’t think I’d get an adjustable rate mortgage, especially not now. And since you are conservative with money you’ll want to keep the payment well within your comfort zone. “Stretching” to buy a house is usually not a good idea anyway. You want to have enough money left over for the other stuff in your life and you don’t want to lie awake at night worrying about how you are going to make the mortgage.

This is what I think anyway. Keep talking to people and get as much info as you can. Good luck!

[potone]

4. House prices in Portland

Thank you, Tyo. Your thoughts express my current thinking. I have just started looking, and I am still trying to get used to what houses now cost. I will keep looking for something that is worth buying at a price I can afford.
Potone

[exlrrp]

5. I agree with Tyo

I think that, if the housing bubble bursts, it will have different effects in different places. Because Oregon prices are not as inflated as California's, if there is a bubble burst, it won't have such a big impact here.
I agree fully: I think Californians are going to start buying this state up, especially if global warming is real--a raise of just 4 degrees is enough to kill the Napa/Sonoma wine industry.
When Californians relize there's a huge big valley to fill up with suburbs, ala Sacramento but with nicer weather, the Willammette valley will be wall to wall houses. Drive down 5 from Portland to Eugene--its happening already.
When buying the house, ask yourself if you want to live in it forever or do you want to turn it/make a huge profit like they do on TV? If youre wanting to make a huge overnight profit, then you'll be disappointed. If you want to find a good place that you can afford, then go to it, there's a lot out there.
Real estate is always a good investment. You actually HAVE something for your money,as opposed to stocks--just ask former Enron employees

[grasswire]

7. Tom McCall shoulda made it a law

Californians not wanted here.

[ginnyinWI]

8. my son and his wife just bought their first house in Portland

He said that the Portland area is less inflated than other markets on the West coast so decided to go ahead and buy last June.

In deciding whether to wait or not, you have to consider how much rent you're paying in the meantime. They were paying $1000 a month/$12,000 a year, money that would be lost for sure while they were waiting for a better market.

[Protagoras]

6. Tyo is right

if you look hard and find a cheaper house in one of the better locations you should be fine in the long run. On the other hand buying in the farther out new developments can be very risky.

I think transportation/travel distance are going to be HUGE issues in the not so distant future so think about access when buying.

We bought Cheap in a high priced area then fixed it up...Means we have lots of left over income, pay less than we would for rent. Don't have a huge house but we do have a nice long term investment that will remain solid even as the McMansions around us take a big hit.

Buy low in a good location and you will almost never regret it if you hold onto it for 7+ years.

use www.zillow.com to check out house prices. It's a fun tool I just found...kinda freaky how much stuff has grown/inflated in value in the last 10 years.