My view is that you never know if you are really out priced in the current market. Forecasts are based on recent months past performance, and this model really does not support the actual price that a seller will agree to in the next few months. Savvy buyers are very interested in property that is 'close in' and whether their particular market is in SW or NE or anywhere else really is very subjective. My advice is to establish what you can actually afford to pay, get your ducks in a very straight row (meaning get a loan pre approval with a good lender who can adjust quality loans to meet your needs and the seller requirements, understand what your cost of purchase will be and have that money ready to go, pick your location carefully, adjust your attitude to be positive and patient) and interview/select a savvy Realtor to help you out (choose someone who really understands the market plus is an excellent negotiator and who can create a good contract for you) and then start looking at property. When looking, have your Realtor help you look at the history of the properties, the debt attached to the properties, and project the intent and agenda of the seller. This will give you a good idea of how to craft your offer to purchase. Remember: a good contract is always about two things: Price and Terms. If you want a certain location, start at the middle of that location and work your way outwards.
Good luck and I hope this is helpful. Of course, call or email me if you want additional help along these lines.
Karla Divine, Broker
Property Taxes are horrendous in the City and while their is an Urban Mystique in these areas I predict that they will continue to slow. SW area is an interesting phenomenon. Seems undervalued to me. My guess is that if you are going to live in Multnomah County and in the City of PDX you will want more urban. If your a Suburbanite like me why not move a little further out and get Beaverton Schools?? Much stronger than Portland Schools and homes are a bit less even yet.
Families do not seem to be moving around much and urban pioneers, DINKS, SINKS, and Gen Next are preferring urban lifestyle probably....so your point is well taken. I suspect so goes the Urban Core the SW hills will follow a little behind.
Hope that helps.
Real Estate Broker & Loan Officer
Keller Williams Realty & Sunset Mortgage Co.
Give me a call and I can further explain it.
Tom Inglesby, Broker,
ABR,CRS,RECS, Eco Broker EA S.T.A.R.
Re/Max Equity Group, Inc.