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re:PDX is presented by Claire Widmark, broker affiliated with M Realty LLC in Portland, Oregon.
Phone: 971-275-3691
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Portland Braces For a Run on Allen Wrenches
Editorial note: I wouldn’t normally burn a couple real estate blog entries on a retail store premiere…but one of the all-too-rare perks of blogging is occasionally getting an invite to speak, write, or in this case, an opportunity to attend a pre-grand-opening…opening.
My recent entry on the new IKEA store in Portland earned me a ‘press’ badge for their media day on Wednesday. (I so wanted to put Wolf Blitzer on my name tag….)
So my wife and I roamed the Swedish furniture and housewares retailer with reporters from Willamette Week, the Oregonian, Oregon Home, a few radio and TV stations, and a fellow blogger from Metroblogging Portland. After a brief lunch of Swedish gravalax, potato salad, meatballs, lingonberries and a quick speech from store managers, we were led on a tour through their labyrinthine store layout.
Even in the absence of this weekend’s upcoming crowds, the store’s staged rooms and displays were visually overwhelming. The upper floor contains all their room displays with items shown in context to help you with design ideas. The lower floor has all the individual merchandise and the warehouse stock. IKEA’s merchandising is impressive–they even show the entire room dioramas with an all-for-one price in case you like every single piece in their staged room.
I’m no IKEA furniture fanboy, but I was impressed with the organization and preparation for what will undoubtedly be a legendary retail onslaught this upcoming weekend Wednesday, July 25. Five days away from opening and the store was 99% ready for customers already. Employees appeared to be focused and driven to finish their merchandising preparation–yet each was exceedingly patient while we lolly-gagger ‘journalists’ ogled the merchandise and slowed their progress.
That said, heaven help anyone bound for the PDX airport this weekend next week, ‘cuz it’s going to be ugly. The routes in and out of Cascade Station are limited and there have been historic traffic jams, even tramplings, in previous IKEA openings.
IKEA officials are braced for the mayhem with lots of extra traffic police, etc. They are even encouraging the party atmosphere with planned festivities like a campout in the IKEA parking lot, starting as early as Monday night (July 23). The first 100 adults in line get a very nice leather chair. They are also handing out 2,500 mystery bags with various coupons and prizes to early-birds in line.
Even without the grand opening party (and despite its unpopular big box footprint), IKEA would have done very well in Portland anyway. They have a good record of sustainable production practices, a good corporate stewardship reputation…and good grief, the stuff is exceedingly affordable (I will stop just short of ‘cheap’). They will even give you a $10 home delivery credit for taking the MAX to the store this weekend.
What does this have to do with Portland real estate? Not much, but I was impressed by their kitchen cabinets, counters, faucets, and range hoods. We toured with the Willamette Week writers, and one told me he had done his entire kitchen for under $1,000 with IKEA cabinets and counters. The drawer units I tried had those slow-close rails and felt substantial to the touch. While their designs continue to be predominately modern and spare in nature, many major furniture item designs were moving more toward the mainstream, and I have a feeling we’ll be seeing more IKEA-designed kitchen remodels in Portland in the near future.
[tags] IKEA, Portland, Oregon, grand opening, retail, furniture [/tags]
Market Activity – Sale Price Averages and Appreciation
Portland area home prices continue to rise, but are no longer attached to rocket boosters. The 12-month average sale price is up 8.9%–the median is up 8.7%–a far more pedestrian pace than the 15 to 20% runups of two years ago.
The year-to-date average sale price for homes in the Portland metro area is now $340,400. Over half the homes sold over (or under) $288,900 (the median).
Market areas showing some recent pricing softness include North Portland, Gresham, Milwaukie/Clackamas, and Hillsboro. Their year-to-date average prices actually went negative when compared to last month. On the other hand, Southeast Portland and Lake Oswego/West Linn showed stronger-than-average gains over the previous month (Lake Oswego’s number can fluctuate greatly due to the impact of high-priced inventory).
Results below are for year-to-date through June 2007.
| Area | YTD Avg. Sale Price | YTD Median Sale Price | 12-Mo. Appreciation |
| Lake Oswego / West Linn | $564,900 | $470,000 | 12.6% |
| West Portland | $467,100 | $378,500 | 4.3% |
| NW Washington County | $405,000 | $375,000 | 4.5% |
| Tigard/Tualatin/ Sherwood/Wilsonville | $378,000 | $340,000 | 3.9% |
| Milwaukie / Clackamas | $344,700 | $305,600 | 10.3% |
| Oregon City / Canby | $323,400 | $300,000 | 6.5% |
| Northeast Portland | $314,500 | $277,300 | 7.7% |
| Hillsboro / Forest Grove | $297,200 | $270,000 | 11.7% |
| Beaverton / Aloha | $287,400 | $260,000 | 4.2% |
| Gresham / Troutdale | $281,800 | $260,000 | 13.4% |
| Southeast Portland | $285,100 | $250,000 | 10.6% |
| Yamhill County | $277,100 | $250,000 | 11.8% |
| North Portland | $263,700 | $249,900 | 10.4% |
| Columbia County | $254,100 | $240,000 | 15.9% |
Appreciation percentages are based on a comparison of average price from the last 12 months (07/01/06 – 06/30/07) with 12 months before (07/01/05 – 06/30/06).
Source: RMLS, July 2007.
June 2007 Real Estate Market Update — The New Normal
Buyers sifting inventory. Sellers tapping their nails impatiently. Buyers scanning internet listing sites. Sellers nervously eying their neighbor’s listing.
For homeowners in the Portland area with short memories, we have entered a ‘normal’ market–one with a healthy amount of housing inventory, still-appreciating prices (albeit slower), and historically low mortgage interest rates. Between hearing the national news and sharing local anectodal experience over the fence, are Portland-area home sellers displaying unnecessary anxiety over the housing market?
June 2007 market activity results are out and the trends are a little revealing. First, in typically one of the busiest months of the year, housing inventory has increased to 5 months, meaning at the current pace of sales with no new listings added, the current inventory would liquidate in 5 months. Most analysts call that a balanced market, and many areas of the country would kill to have just 5 months on hand.
Two, the twelve-month average compared to the previous 12-month average is showing a drag on house price appreciation, down now to 8.9%. The 12-month average sale price in the Portland area is now $333,200 and the median price is $280,000. Year to date, homes are taking 59 days to sell on average.
So, what are we to make of the current market?
Hopefully, buyers on the sidelines will enter the fray, take advantage of a slightly softer market and absorb some inventory. Sellers need to watch out for overpricing, and may have to concede more than they anticipated or be patient enough to wait for that perfect buyer. I believe price appreciation will continue to erode, but the market fundamentals (interest rates, inbound migration, West Coast affordability) will keep prices from going into negative territory.
Tomorrow, average sale prices and appreciation by market area.
[tags] Portland, Oregon, houses, homes, prices, appreciation, real estate, market, update [/tags]
Photo by ClintJCL, used under Creative Commons license.
All The News That’s Fit To Blog
Portland and its real estate market have been making a few headlines recently.
First, the local Portland Tribune (Portland’s semi-weekly newspaper) provides some deep reporting on the local real estate and housing market as part of its ReThinking Portland series.
Articles touch on topics such as affordability, density and planning, first-time buyer assistance, gentrification, urban renewal, and housing for seniors. The main theme of the section is affordability, or the lack of it as the Portland market continues to appreciate at a much greater rate than wage growth.
Then, Fast Company magazine names Portland as one of its Green Leaders in its Fast Cities article. The article highlights the top 30 urban centers worldwide they believe will be sites for future business innovation based on factors such as creative class, research & design, and startup environments. In Fast Company’s words:
They are cauldrons of creativity where the most important ideas and the organizations of tomorrow are centered. They attract the best and brightest. They are great places to work and live.
And about Portland:
Population > 2.5 millionLeading indicator > With 125 projects and counting, Portland has the most structures certified by the U.S. Green Building Council
Fast companies > Nike; Tektronix; Adidas USA; ad firm Wieden+Kennedy
Three decades ago, Portland became a case study on how to stuff sprawl when it enacted strict limits on urban growth. Today, it’s at the forefront of the “eat local” revolution, in which individuals and restaurants buy directly from area farmers to preserve livelihoods and open space. With 13 farmer’s markets, and nearby world-class vineyards, residents not only buy local but they eat and drink well too.
Sounds like the author spent some time at Higgins.
Finally, HousingPredictor.com puts Portland in its top 25 appreciating markets (at number 10). Their coverage of Oregon forecasts an appreciation rate of 6.7% in the Portland area for 2007. Albuquerque comes in at number one at 9.1% anticipated appreciation.
[tags] Portland, Oregon, real estate, homes, houses, housing, news, reporting, forecast, Fast Company, Portland Tribune, Housing Predictor [/tags]
