Benjamin Ficker

I think there are times to buy in any market. Not to say it is always a good time to buy, but there are always deals to be found. I personally don't think 9% of the peak is a great deal. I would be looking for properties that you could get 10-20% below market value. Yes, that means writing numerous offers and long waiting periods with banks. But patience and hard work pays off. - Fri May 30 2008, 23:00

Yiji,
Despite some of the answers here, rentals can be a great investment no matter what the market is doing. It all depends on what your numbers look like. Appreciation is definitely something you have to take into account, but it should be the icing on the cake for your investment, not your sole money maker. There is also the tax sheltering benefits of rentals, debt reduction, and cash flow (depending on the rent vs your payment). If appreciation were the only factor, there wouldn't be any investors making money in flat markets. Obviously you wouldn't want to buy properties if you expect values to drop dramatically. But if you have already built in equity it may make your numbers work to hold the property. If you have any questions on how to double check your numbers, give me a call.

In regards to selling: If you don't HAVE to sell, why put your home on the market to compete with short sales and foreclosures? We have a glut of inventory and the homes that are selling are the ones with extremely motived sellers. So again, if you don't have to sell, don't waste your time putting it on the market. If you DO Have to sell, then by all means, do it right. Price it aggressively and find a broker who will market the h*ll out f the property. - Fri May 30 2008, 22:54

Great question, I'm not as optimistic (pessimistic?) as Dirk that there will not be affordable housing in the Pearl. In terms of rentals, the Pearl has one of the highest per capita ratios of affordable living rentals in the Portland area. In terms of owner occupied units, My gut says that the Pearl will follow suit (with falling prices) of the surrounding area. If you look at the numbers, you can see that things are definitely out of whack. Year to date there have only been 19 sales, while we have (at the time of posting) 316 units for sale. Oregon's boom started later than the rest of the country, and our falling prices (depending on the area) happened later as well. It is only a matter of time before the Pearl catches up. I don't believe we will see 20% drops or anything that dramatic, but it will all balance out in the end. - Sat May 10 2008, 22:14

Hi Jules,
Brian already gave you a great list to start, so I don't want to rehash what he already said, but you can not forget the the parks or the more family centered development that is happening n the area either. The Pearl is not just for hip, single urbanites anymore. Check Neighborhood Notes to see all the community events that are going going. - Sat May 10 2008, 21:55