Portland foreclosures continue driving home prices. The Standard & Poor’s/Case-Shiller index showed that prices dropped 4.7 percent lower than this time last year. The number of Oregon homeowners who dealt with foreclosure filings in 2011 dropped 39.14 percent from the previous year. This apparent improvement for 2011’s reports does not include short sales. Due to the current fair market value of homes, more banks are willing to conduct short sales because legal fees are significantly lower when compared to those of foreclosures.
Due to the amount of 90-day mortgage delinquency rates in Portland, it is estimated that there will be an increase in the amount of foreclosures through 2012, according to the Mortgage Bankers Association and the Center for Responsible Lending. The average price of a foreclosed home in Oregon is $171,044, according to the most recent data from the Regional Multiple Listing Service. Compared to the rest of the country, Oregon is ranked as the 14th state with most amount of foreclosures. The continued decline in prices is attributed to foreclosures, short sales and the winter slowdown after the peak buying time which is traditionally in the summer months before the back to school season.
Even though residential construction may to add to U.S. economic growth figures for 2011, for the first time in four years; apartments are being built almost twice as fast as two years prior specifically due to a surge in renting which follows foreclosures. As foreclosures continue rising so will the need for rentals. Many cannot qualify for loans or meet the higher down payment requirements and those who do have good credit and employment are waiting in fear that prices may keep falling. Sales of previously occupied homes are barely ahead of 2008’s dismal figures — the worst in 13 years. And sales of new homes this year will likely be the worst since the government began keeping records a half century ago. Home prices are certain to fall further once banks resume millions of foreclosures. They have been delayed because of a yearlong government investigation into mortgage lending practices.
Investing in this market may turn out to be the best financial decision that people make in their entire lifetime. Many investors are taking advantage of Portland foreclosures as these properties are being rented out quickly and effortlessly, providing an excellent passive monthly income. Portland offers many kinds of properties for the savvy real estate investors. For more information about Portland foreclosures call (503)539-9094 or visit 8925 SW Beaverton Hillsdale Hwy Suite E, Portland, OR 97225. Visit HowToInvestInRealEstatePortland.com