Mover Mike

The Oregonian reports Home prices go through the roof

The Portland-area median home price jumped 15.3 percent in April — to $224,900 — compared with the same month in 2004, according to the Regional Multiple Listing Service. The median price in the first four months of the year ran 14 percent above the figure for the same period last year. That’s after a 10.2 percent increase in the annual median price in 2004.

…snip…

Increasingly, buyers from out of state (California) also are snatching up Oregon homes as investments, real estate agents say.

In the NE area of Portland where we live, homes are going for $200+ per square foot. Rents for 1200-1300 square foot Condos in the Pearl are going for $2500-$3000 per month. Amazing, but aside from low interest rates, in-migration, investors from California, we, also, have an urgan growth boundary that concentrates the real estate activity, leading to a limited supply.

Here’s a thought. At 14% increase in price per year equals a double every 7 years. We purchased our house for $155,000, 10 years ago. Last time I checked, it’s probable market price is $350,000. Another seven years it would be $700,000, and then $1,400,000. Yahoo! Wonder if a Starbucks will be $10 or $15 by then?

Tags: Housing //
Trackback URL: Trackback URL.