On the tail-end of the anticipated extension of the Federal tax credit for first-time homebuyers—and the expansion of the credit to repeat homebuyers—the real estate markets of Portland and Eugene, Oregon have maintained a consistent percentage of distressed properties in their respective markets. The prospective extension may potentially add incentive to purchase a home in a sector of the market that has already caused a lot of commotion in the residential real estate world.
Movoto.com considers a property distressed when the description of the home in the Multiple Listing Service (MLS) has an agent note that defines the property as bank owned, in foreclosure, short sale, or REO (a term used to indicate the property is bank owned). Many buyers continue to target the distressed market to take advantage of decreased prices. Tony Lozzi, a Movoto agent in the Portland market feels that house hunters can definitely benefit from the reduced prices, but also feels that they should be wary. “There is no doubt that people gravitate toward foreclosures and short sales,” Lozzi divulged. “Beauty is in the eye of the beholder. But with distressed properties, there can be a lot of unknowns and latent issues.”
Distressed properties made up 6% of the total market in Portland, Oregon, compared to 3% in Eugene, as of November 1, according to Movoto.com. While the distressed property supply was substantially fewer in Eugene, these percentages have remained consistent since October of this year. Both cities also saw significant decreases in listing prices for homes for sale. From October to November, Portland saw a total of 620 price decreases and Eugene’s inventory saw 85. While both cities had a different level of distressed property saturation and a different number of price decreases, statistics for both Portland and Eugene property listings followed the same trend: an unchanging percentage of distressed properties listed at falling price points.
As real estate buyers in Oregon await Presidential endorsement of the tax credit extension, real estate agents also anticipate a possible surge in buyer activity due to the opportunities available to buyers in this market. Tony Lozzi adds, “The tax credit extension will definitely help boost sales in the Portland real estate market at a normally slow time of the year.” For information about the Federal tax credit, visit the IRS website.