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re:PDX is written by Ron Ares, broker and market analyst affiliated with M Realty LLC in Portland, Oregon.
Phone: 503-460-7992
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NPR Highlights Portland’s In-Migration Puzzle
NPR shared an interesting story outlining the dichotomy of why people are continuing to migrate to Portland despite a lack of employment opportunities and racial diversity.
In short, it noted the typical stereotypical responses — outdoor life, food, music, beer, biking — you know, lifestyle stuff.
For jobs? Not so much.
From the NPR transcript:
Oregon economist Christian Kaylor says he can think of only one explanation for the migration into Portland: the quality of life.
Kaylor says wages there are sometimes 20 percent lower than in Seattle or San Francisco. But people keep coming. In fact, Portland’s appeal is part of why the city’s unemployment rate tends to be about a point higher than the national average.
“In recessions, Portland tends to see population growth, even as we lose jobs,” Kaylor says. “So one of the reasons we have that higher unemployment rate is because people do continue to move here even as jobs disappear.”
Foodcarts, rock bands, and brewpubs aside, perhaps these recent additions will someday find reasonable employment options and eventually fuel the housing market in years to come. I have worked with several that fit this mold, and I hope their careers can continue to support both their lifestyle and housing choices.
An Ode to Portland
Over the years, I’ve posted links to many reviews of the Portland lifestyle…most penned by a fawning NY Times writer wandering about town for a long weekend or so.
This gem, Twice Charmed by Portland Oregon, however, was written by local author Katherine Dunn (Geek Love) for the Smithsonian Magazine. Dunn moved here as a teen and re-emigrated to Portland later in her life.
Yes, it’s a little sentimental, but saccharine-free.
Portland’s population has mushroomed since I was a kid. The perpetual tug of war between preserving and modernizing saws back and forth. Urban renewal ripped out communities and poured in glass, steel and concrete, but some of the replacements are wonderful. The town is better-humored now, more easygoing. That feel of the old hobnobbing with the new is more amiable. Of course the blood and bones of the place never change—the river, the hills, the trees and the rain.
Cool Portland Neighborhood Poster Art
Need a gift idea? Joel Burslem, over at Future of Real Estate Marketing, highlights these cool neighborhood-name art posters available at Ork Posters.
Priced between $22 to $27, available in 4 colors. They’ve mapped several other cities, like Seattle, San Francisco, Boston, NYC, LA, and Chicago.
Image courtesy of Ork Posters.
Update: Atwater Auction in Portland’s South Waterfront
Update September 22, 2009: I didn’t attend the auction because my client decided not to bid. But Ryan Frank from The Oregonian did a bang-up job of following the action, even though he got thrown out of the bidding room. Be sure to read his write-up. Bottom line, the new average per square foot in the South Waterfront has effectively been reset to $300/sq. ft.
My small post about the auction scheduled for September 21 for the South Waterfront’s Atwater condo project attracted a fair amount of traffic, so I thought I would update it. I visited the property a few weeks ago for some first-hand assessment. Buyer traffic through the units was brisk. I don’t know if that translates to big participation at the auction or not.
Forty units of various size are slated for the auction. If all 40 were to sell, then the building would basically only be 1/2 sold out. Perhaps the marketing company will put together another auction if this auction is successful.
So, a little Q and A:
How does someone participate in the auction?
You must register and get pre-qualified to participate in Sunday’s auction by 7 pm on Friday, September 18. You can visit the condos between 11 am and 7 pm each day through Friday. If you want your own agent representative to guide you through the process, they must accompany you at the first visit to the property and register themselves.
What are the general contract terms?
The sales contract does not offer much in the way of protections for buyers. You cannot use a property inspection as a contingency for purchase. You cannot use a typical financing contingency. In other words, you will likely lose your earnest money deposit if you fail to close the transaction.
All the purchase paperwork and disclosures are available in advance from the marketing company (registration required), so you won’t be surprised at the signing table. You must close your purchase on or before October 19, 2009. They are offering a $2,500 incentive to close the transaction before October 5.
What is the auction format?
It is a live auction. Open bid amounts start at about 1/2 of the original list price, with increments controlled by the auctioneer. There is no published, pre-determined order to how the units that will be auctioned. You should likely have a back-up unit in mind in case your first choice is gone. If you like to see how the auction will be operated, you can go to a ‘mock auction’ at 6 pm on Saturday at the Marriott.
You must bring a cash equivalent (check or money order) for $2,500 to the auction. If you have a winning bid, you will immediately go to a separate room to sign an official contract and deposit 3% of the sale price with Ticor Title as earnest money.
How much are the HOA fees?
The homeowner association fees are equivalent to $0.303 per square foot, or $484.49 per month on a 1,594 sq. ft. 2 bedroom, 2 bathroom unit for example. The HOA fees cover water, sewer, and garbage for utilities, plus management, maintenance of all common areas, insurance, etc.
Is financing available?
If you need a mortgage, you must be pre-qualified through the Atwater’s two preferred lenders, Bank of America or MetLife. These lenders are offering $1,500 credit toward your closing costs. You’ll have 5 days to complete the loan application process after your winning bid. You can arrange your own financing, but I doubt outside conventional lenders will loan on this project. If you’re paying cash you must show proof of funds.
What about the property?
The units are very nice, comparable to the Meriwether and much of what is in the Pearl District–appointed with granite counters, nice appliances, etc. The high-end units (what I saw anyway) were fine, but I felt the Meriwether had better views (at least in the East building). There’s very little in the way common area space (i.e. no workout room), but there is a mid-sized community room in the foyer. Some extra storage in the basement may also be available for an extra fee.
What is the parking situation?
Each unit has a deeded, secure parking spot. Two bedroom units get 2 spots.
KOIN recently did a piece on the auction:
Photo courtesy of Excell Marketing Group.
Portland Sucks, But Someone’s Got To Live Here
Just kidding. Here’s a quick tour of Portland, at its finest:
Planning an exploratory visit to Portland? Then check out TravelPortland.com for events and things to do, places to see, etc.
Note: I am totally ripping this post off local author, Donald Miller, but his blog put me onto this video.
A Call For Papers (aka Help Wanted)
A recent vacation gave me an opportunity to reflect on where my time has been going lately.
I’ve had a busy year so far. I changed brokerages (more on that later). I’ve shown over 500 homes to dozens of clients. I’ve written successful (and unsuccessful) offers and soldiered through about a dozen transactions, each with their own challenges.
All the while the re:PDX blog has taken something of a back seat to other activities, and I think that needs to change. So, here’s my pitch:
I want to expand the coverage and commentary found here, specifically as it relates to the home-buying and selling consumer in the Portland area. Do you have experience or opinions about real estate, livability, neighborhoods, mortgages, or construction? Would you share your experience as a home buyer or seller in this market?
Here are some voices I think could be interesting:
- Home inspectors
- Contractors
- Title and escrow officers
- Mortgage bankers and brokers
- Appraisers
- Real estate investors
- Property managers or multifamily property owners
- Housing ‘bubble’ critic
- Local economists
- New resident of PDX or moving to PDX
- A first-time home buyer
- Local multiple listing service professional
- Photographer of local PDX sights and scenes
- What else?
For what it’s worth, re:PDX receives over 4,000 unique visitors and 6,000+ pageviews per month. Not earth shattering, but I suspect it may be the highest-trafficked Portland real estate blog (according to Alexa).
So, if you’ve had an interest in writing in a public forum, would like an occasional soapbox, or want to dip a toe in the blogging pond, let me know. Or forward this post to someone you believe would be a good fit.
Sorry, the pay’s not great 
, but contributors get full attribution and headshot, plus link love to your website or blog.
Feel free to leave a comment at the end of this post, email me directly at ron(at)ronares.com or call me at (503) 460-7992 if you want to speak in private.
Dude! Where’s My Stove?
In foreclosure-ravaged communities like Las Vegas, parts of California, and Phoenix, it’s not uncommon to hear of properties that have been stripped of their appliances and other relatively removable fixtures.
But it’s less common in the Portland area. In fact, this is the worst I’ve seen.
Damascus home stripped of fixtures
From The Oregonian:
DAMASCUS — After stripping his foreclosed home of everything from the air conditioning system to the kitchen sink, Grigoriy Bogoslavets was convicted of a crime that is often witnessed but rarely reported.
The 33-year-old electrician pleaded no contest last month to aggravated theft after stealing more than $50,000 of property attached to his former Damascus home, one of the few such cases in Oregon or across the country to result in prosecution. He will be sentenced Sept. 22.
In many of the distress properties I’ve viewed recently, sometimes the range, range fan, dishwasher, and the decorative light fixtures have been removed during the pre-foreclosure period. But I’ve never seen the island and the drawers from the cabinets taken. Can’t imagine how those will be used.
This guy got caught because the neighbors reported it to the police. If you live in a neighborhood with a house going to foreclosure, and you suspect a neighbor is doing the same thing, report it and protect your property values. This guy might get up to 4 years in prison.
Full story on OregonLive.com.
South Waterfront Condo Update, Atwater to Auction
[ EDITOR'S NOTE: See my September 16 update. ]
Slow condo sales along the Willamette force the Atwater and John Ross buildings into ‘soft receivership’. That’s a nice way of saying the banks are taking a primary role in making decisions for the projects.
Ryan Frank of The Oregonian wrote it up on August 7.
Now comes news that the Atwater will try auctioning its inventory.
An auctioneer will put condos under the gavel in Portland Sept. 20 to whip up sales for the 23-story luxury development. The announcement comes after lenders elbowed aside developers of the Atwater and John Ross towers because of slow sales in the sorry housing market.
When Renting Doesn’t Turn Out So Well
Despite the current popular advice to not buy a home in a recessionary economy, here’s some counterpoint regarding the risks of renting.
Willamette Week shares these stories of Room 120 at the Multnomah County Courthouse, where tenants and landlords do battle.
I’m not being a Realtor shill for sharing this. Owning isn’t for everyone or every season, but it does provide you with more stability and control over your home life.
Photo courtesy of sashafatcat, used under Creative Commons license.
Friday Night Lites
Just a few news items to wrap up this week in Portland real estate:
Portland real estate prices stay level, sales on modest climb for May
RMLS official tabulations for May 2009 will come out next week, but my early review shows that closed sales continue a small month-over-month increase (a seasonal effect), and median and average sale prices were essentially flat from the previous month. Closed sales will show to be up 10% over April, but down by ~30% from one year ago. Both median and average sale prices are around 13% off levels from a year ago. Come back early next week for a full report.
Oregon foreclosures nearly double in a year
A recent tabulation of foreclosure activity in Oregon shows a nearly 90% increase compared to May 2008. One out of every 525 Oregon homes received a foreclosure filing in May–the nation’s 12th highest rate.
Oregon to get a head start on recovery?
Really? Why? From research by Moody’s:
High-tech industry is one element. A slowdown in technology spending in 2008 and 2009 has created a pent-up demand for technology — businesses that know they need to upgrade and are waiting for the ability to spend.
“States that have a high concentration in tech-related industries are well positioned to take advantage of this trend, which is particularly true of Colorado, Idaho, Oregon and Washington and to a lesser extent Texas,” said economist Andrew Gledhill of Moody’s Economy.com.
I certainly hope the prediction is true, but I suspect digging out of a 12% unemployment hole will take longer than expected. (And wasn’t Moody’s one of those rating companies that suggested those mortgage-backed securities were AAA rated?)
Bike community letting it all hang out
Last, but not least, the Portland bike community celebrates it’s version of the World Naked Bike Ride on June 13 with a series of events. If you’re in the vicinity of NE 39th and Glisan around 2PM, you’re bound to get an eyeful during the Sunny Nekkid Ride (fair warning!). The big event is at midnight, and last year, 2,000 riders participated.
Photo by jd.inaz. Used under Creative Commons license.
