Portland pre foreclosures and employment problems have been dragging down home prices in the area.
In March, the average price for houses sold in the Portland metro area fell by almost six percent to $280,300 while the median sales price dropped by three percent to $246,000.
With the report from Standard & Poor’s/Case-Shiller that home prices in Portland fell by 4.8 percent over the past 12 months, prospective buyers planning to buy foreclosure for sale in Portland are expected to find a number of them at affordable prices.
S&P/Case-Shiller analysts also reported that house prices in Portland fell by a total of 23 percent since July 2007, the peak of the local market. In February, the Case-Shiller house price index for Portland dropped to 143.69, which means that a property investment of $100,000 in the year 2000 is now worth $143,690. The peak index for Portland was reached in July 2007 when it hit 186.51.
Portland performed slightly better than Seattle, another large Northwest city, which posted a Case-Shiller index of 143.54, far below its 192.3 peak level in July 2007.
Another factor driving Portland pre foreclosures and lower home prices is unemployment. In March, the unemployment rate in the metro area rose to 10.7 percent, as 133,200 residents were still looking for jobs during the month, based on figures from the Oregon Employment Department.
Properties also continued to enter foreclosure auctions in Oregon, as the statewide unemployment rose to 10.6 percent in March. A total of 229,083 Oregon residents were still jobless during the month. Jobless rates increased in nearly all counties in the state in March, with Crook County posting the highest unemployment rate in the state, at 15.5 percent.
The jobless rate in Deschutes County was also still high at 13.3 percent, up by one percentage point from the previous month. Nonfarm employment in Oregon fell by 400 jobs in March, in addition to losing 900 jobs in February.
Over the past 5 months, the unemployment rate in Oregon held relatively steady, but the labor force expanded in the first quarter of this year, as a higher percentage of adults joined the labor market. In March, the labor force surged to 1,955,720, up from 1,935,774 in December last year.
In February, a total of 3,312 foreclosure filings were posted in Oregon, including 2,232 Portland pre foreclosures and pre foreclosure actions in other parts of the state. Also included in the total filings are 1,080 residential units already repossessed by lenders.
Author Resource:-> Original Post: Portland Pre Foreclosures and Unemployment Drove Down Prices on ForeclosureDeals.com.
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