-
Your Host
re:PDX is written by Ron Ares, broker and market analyst affiliated with M Realty LLC in Portland, Oregon.
Phone: 503-460-7992
Follow Along
Subscribe in a reader
Oregon Mortgage Market Conditions
One test for the health of the Portland metro real estate market is the mix of sub-prime vs. traditional (or prime) mortgages. In a recent National Association of Realtors survey, subprime loans account for only 9% of homeowner mortgages, but they comprise 54% of foreclosures nationally.
The survey, which includes data from the Mortgage Brokers Association, reports that as of early 2008, 32% of homeowners across the U.S. have their homes paid in full, and of those with a home loan, 53% are in a prime mortgage and the balance are in a sub-prime (9%) or FHA/VA loan (6%).
Here’s a look at how Oregon compares to the nation and California by mortgage type:
Mortgage Mix
| Mortgage Type | National | California | Oregon |
| Paid in full |
32%
|
24%
|
29%
|
| Prime mortgage |
53%
|
65%
|
60%
|
| Subprime mortgage |
9%
|
10%
|
7%
|
| FHA/VA mortgage |
6%
|
1%
|
4%
|
Foreclosure Mix by Mortgage Type
NAR says the Oregon foreclosure rate is 0.7%, while California foreclosure rate is at 2.2%. Here are the mortgage types that foreclosures are coming from:
| Mortgage Type | National | California | Oregon |
| Subprime Mortgages |
54%
|
61%
|
55%
|
| Prime mortgage |
37%
|
38%
|
38%
|
| FHA/VA mortgage |
9%
|
1%
|
7%
|
Does this mean Oregon will continue to outperform national and Californian averages? Maybe, maybe not. But certainly the mix of mortgage products is encouraging.
Source: 2008 State-by-State “Mortgage Market Conditions” Reports, NAR.
Photo by denn, used under Creative Commons license.
Comments
3 Responses to “Oregon Mortgage Market Conditions”
Leave a Reply
http://www.housingwire.com/2008/04/24/moodys-begins-downgrading-aaa-rated-alt-a-rmbs-to-junk/
I really don’t think we need to differentiate too much between Alt-A and subprime any more – the Alt-A is just taking a little longer to go south as those people typically have more reserves to survive longer – but the end result will be the same.
Once the write downs in Alt-A start we’ll see the credit market for near prime lending tighten in the same way as we saw subprime vanish.
It’s still early days in this credit crunch IMHO – the losses on mortgages going south will be larger going forwards as home prices are dropping daily – and the losses on the alt-a stuff will be significantly larger than the subprime stuff as the loan amounts were higher.
More blood incoming for the banks this summer/fall I suspect.
http://www.youtube.com/watch?v=pmeBSWI9sF8
This is a good primer and comparison between Alt-A and subprime.
[...] Oregon Mortgage Market Conditions One test for the health of the Portland metro real estate market is the mix of sub-prime vs. traditional (or prime) mortgages. In a recent National Association of Realtors survey, subprime loans account for only 9% of homeowner … Are you a $35 tube of toothpaste in a $3 world? Home selling is pretty basic: Supply and Demand. Market conditions are not something you as a home seller can control. You can’t control the inventory on the market or what the asking prices for other homes are. …REAL ESTATE MARKET UPDATE We hope this information will provide you with a useful perspective on the statewide market as you discuss current conditions with your agents, clients and customers. As you well know, and we all must convey to the media, real estate is .. Outer Banks Real Estate Market Conditions – Hatteras Island Style There are a lot of searches and inquiries as to the Outer Banks Real Estate market conditions. Tom Hranicka from Outer Beaches Realty published a newsletter this week with some interesting statistics for Hatteras Island. … If you would like to have your market featured, send us an email to info@realestateradiousa.com and we will be glad to feature a snapshot of your real estate market. [...]