Portland Housing Blog

One in four Oregonians is underemployed

portlandhousing@yahoo.com (Clint8200) — Thu, 16 Jul 2009 15:00:00 +0000

In California and a handful of other states, one out of every five people who would like to be working full time is not now doing so.
It is a startling sign of the pain that the Great Recession is inflicting, and it is largely missed by the official, oft-repeated statistics on unemployment. The national unemployment rate has risen to 9.5 percent, the highest level in more than a quarter-century. Yet it still excludes all those who have given up looking for a job and those part-time workers who want to be working full time.
Include them — as the Labor Department does when calculating its broadest measure of the job market — and the rate reached 23.5 percent in Oregon this spring, according to a New York Times analysis of state-by-state data. It was 21.5 percent in both Michigan and Rhode Island and 20.3 percent in California. In Arizona, Tennessee, Indiana, Nevada and Ohio, the rate was just under 20 percent this spring and may have since surpassed it.
Almost nobody believes that unemployment has finished rising, either. On Tuesday, President Barack Obama said he expected it to “tick up for several months.”

KOIN and Teufel Nursery file bankruptcy

portlandhousing@yahoo.com (Clint8200) — Wed, 15 Jul 2009 15:00:00 +0000

From the Portland Business Journal:

The owner of Portland’s channel 6 KOIN TV station will enter Chapter 11 bankruptcy proceedings in Delaware this week, under a financial restructuring plan with debt holders.
Los Angeles-based New Vision Television, which also owns KBNZ in Bend, will eliminate $400 million in debt and guaranteed obligations and obtain $30 million in new financing under the agreement with first- and second-lien debt holders, the company announced. In exchange, debt holders will receive equity in the company and seats on its board of directors.

This station gets bought and sold every year. I feel sorry for the few employees who work there.

In other bankruptcy news Teufel Nursery filed bankruptcy last month. There isn't a story on it yet but a Google search confirms the rumors. I was really surprised by this because they sold a 100 acre nursery to Polygon Homes at the peak of the bubble.

Oregon unemployment rate unchanged at 12.2%

portlandhousing@yahoo.com (Clint8200) — Tue, 14 Jul 2009 15:00:00 +0000

From the Oregon Employment Department:

Oregon’s seasonally adjusted unemployment rate was 12.2 percent in June, the same as the revised May figure of 12.2 percent.
Despite remaining unchanged between May and June, Oregon’s unemployment rate
was up substantially from June 2008 when the rate was 5.9 percent.
The U.S. seasonally adjusted unemployment rate rose to 9.5 percent in June, from 9.4
percent in May.
In June, Oregon’s seasonally adjusted nonfarm payroll employment declined by 7,200 jobs, following a drop of 1,600 (as revised) in May. This marked the 11th consecutive month of decline for this measure of employment.

Recession impacts Oregon's cattle industry

portlandhousing@yahoo.com (Clint8200) — Sun, 12 Jul 2009 15:00:00 +0000

From the Oregonian:

"It's never been easy to make a living," says Ken Holliday, who runs a 10,000-acre ranch near John Day. "But now, you kind of wonder why you even do it."

In Oregon's vast cattle country, where life yields to nature's whims and business bucks with the market's whiplash, the global downturn is bearing down. At the start of a food chain that ends on your plate, Oregon ranchers are trying to hang on through a sudden swing that could mean a losing year for an industry that roped $664 million in gross sales last year.

In 2008, ranchers paid record high prices for corn, hay and feed -- an investment now all but lost as beef competes against falling prices for poultry and pork. People worldwide are buying less meat. Restaurants are ordering fewer steaks. And the hides that make shoes, car seats and furniture aren't worth much in a recession that has curbed consumer lust for material things...
Over a lifetime, a typical cow may eat thousands of pounds of corn, hay and feed before it ends up at the slaughterhouse. And last year, the cost of those ingredients went sky-high.
Feed shot up 22 percent, fertilizer and chemicals went up 26 percent and fuel rose 14 percent, according to the USDA National Agricultural Statistics Service. Corn, the primary diet of cattle in the last months of their lives, has tripled in price over recent years.

The high input costs are a big reason economists predict a money-losing year for the industry nationwide, with losses of up to $130 a head, which ripples throughout the chain, according to CattleFax, a market research firm. With 26 million head of cattle in the U.S., the losses multiply fast.

Even in a normal year, consumers might have hesitated to pay for beef at last year's production prices. But with the recession, world demand for beef has dropped, tamping a decade of growth fueled by rising incomes from here to India...
"This downturn is more severe and occurred quicker," Penick says. "The cycles have been much more extreme, the highs are higher, and the lows are lower. All of our industries in agriculture will have to adjust to the new economic realities that we face."

The article is fairly long but a good read.

Southern Oregon home values off 43%

portlandhousing@yahoo.com (Clint8200) — Thu, 09 Jul 2009 21:02:00 +0000

Here is an update from beautiful Southern Oregon. The median sales price in July 2007 (market peak) was $325,000...

...last month it was $185,000. A drop of $140,000 or 43%

Yahoo!: Portland real estate has further to fall

portlandhousing@yahoo.com (Clint8200) — Tue, 07 Jul 2009 15:00:00 +0000

From Yahoo!:

Home buyers looking for a bottom in the real estate market may have been encouraged by housing data released earlier this week. Sales of existing homes rose 2.4% in May, according to the National Association of Realtors.
Don’t get too excited – it’s still too early to say the housing market bottomed out, analysts and economists say. Distressed properties still account for about a third of all sales, and 29% of sales were to first-time home buyers, who are currently benefiting from an $8,000 tax credit.
The sales trends are telling. “You’re not really seeing a lot of move-up buying,” says Richard F. Moody, chief economist and director of research at Forward Capital, LLC. “There are so many vacant homes and so many foreclosures that [there’s] not the normal trade-up pattern that you would have traditionally seen,” Moody says.
“In light of the housing market boom and bust, consumers should feel very comfortable financially” before deciding to buy, says Lawrence Yun, chief economist for the National Association of Realtors. “They should not try to overstretch their budget to get their dream home.”

Here are the five markets that have further to fall:
1. Detroit
2. New York City
3. Phoenix
4. Portland
5. Minneapolis

Calculated Risk has talked extensively about the lack of move-up buying and Agent503 notes that half the inventory in Portland is vacant and two thirds of all sales in Portland are vacant homes. Obviously those sales are not going to create move-up buyers.

Gresham Mayor averts foreclosure

portlandhousing@yahoo.com (Clint8200) — Mon, 06 Jul 2009 15:00:00 +0000

From the Portland Tribune:

The wave of foreclosures hitting Oregon and the nation isn’t leaving anyone untouched – even Gresham Mayor Shane Bemis is facing the prospect of foreclosure on his home.
In March, Bemis was issued a notice of default for a loan of $666,474 for his four-bedroom home at 4695 S.E. Deer Creek Place in the Persimmon Country Club area.
Bemis told The Outlook on Wednesday that he has found a buyer for the 4,853-square-foot home and will avert foreclosure.
The mayor said that the sale of the home was required as one of the terms of his divorce agreement. Bemis, who bought the house new in January of 2007 for $834,250, placed the home on the market about a year and a half ago and lowered the price four times in the effort to find a buyer. Its latest listing price is $655,000.
“Given the deep recession and the housing bust,” Bemis said in a written statement, “we knew that it would be extremely difficult to find an interested buyer.
“Because I was not residing in the house, the financial burden of making payments for both the Persimmon house and my personal residence was unmanageable, and I became one of millions of Americans to face pre-foreclosure,” Bemis said.

A 21% price drop to move the home.

InFocus cuts more jobs

portlandhousing@yahoo.com (Clint8200) — Sun, 05 Jul 2009 15:00:00 +0000

Layoffs have slowed but they are still happening.

From the Oregonian:

A month after InFocus Corp. got a new owner, the Wilsonville company said this morning that it will be making additional, unspecified job cuts.
The digital projector company was already in the process of cutting its staff by 30 percent. InFocus said this morning that it will make a "significant" additional cut in recognition of the poor "global economy and industry conditions." InFocus said sales in the projector industry are down 20 percent from last year.
InFocus employed about 300 at the start of the year, roughly half of them at its Wilsonville headquarters. The company had planned to eliminate about 90 jobs companywide during 2009.
The cuts announced this morning are in addition to that, according to InFocus. Many of these most recent cuts will be at InFocus' Singapore office, but the company said there will be job reductions in Wilsonville, too.

July 4th firework shows get canceled this year

portlandhousing@yahoo.com (Clint8200) — Fri, 03 Jul 2009 16:56:00 +0000

Portland isn't the only city canceling firework shows this year. Both Fort Vancouver and The Blues Festival have canceled their shows.

From MSNBC:

The skies will be dark and silent over Colorado Springs, Colo., on Saturday. Because of the recession, city officials canceled their Fourth of July fireworks display, a three-decade-old extravaganza that was one of the biggest Independence Day parties in the state.
More than 50,000 people usually turn out for the show at Memorial Park, which traditionally features the Colorado Springs Philharmonic Orchestra booming not one, not two, but six howitzer cannons in time to Tchaikovsky’s “1812 Overture.” But this year, the army of donors who fund the pyrotechnics have cut back, and the city itself couldn’t find enough money to pay for the city crews who keep watch.
With the recession, now in its 19th month, eating away at state and local budgets everywhere, it will be a silent Fourth for many communities across the country that have canceled their annual shows.

Your only two choices this year are Oaks Park and PGE Park. Have fun and be safe.

U of O index: jobless recovery may follow end of recession

portlandhousing@yahoo.com (Clint8200) — Thu, 02 Jul 2009 19:16:00 +0000

Professor Duy released the U of O Index of Economic Indicators for May this week.

The University of Oregon Index of Economic Indicators™ fell 0.1 percentage points in May to 85.0 (1997=100). The relative stability in the UO Index over the past three months is consistent with a pattern of economic stabilization, but falls short of a turn that would conclusively mark the end of the recession.

As a general rule of thumb, a decline of 2.5 percent (annualized) over six months, coupled with a decline in more than half of its components, signals that a recession is likely imminent.

On the job market:

Oregon labor market data continue to be mixed. Initial jobless claims edged downward slightly, but remain at a level that suggests further declines in nonfarm payrolls.
Still, initial claims remain well below the peak of December as the pace of economic deterioration has slowed markedly. Employment services payroll—largely temporary help agencies—fell in May, but, importantly, the rate of decline is slowing. Nonfarm payrolls (not included in the index) fell by just 100 jobs during May, an abrupt slowing compared to the recent declines. It is difficult to see a substantial improvement in the jobs picture, however, with initial claims remaining at high levels. The unemployment rate, a lagging indicator, rose to 12.4 percent.

On housing starts:

Residential housing permits (smoothed) continued to decline, falling to just 627. The typical seasonal boost in building activity is largely absent, a testament to persistent weakness in the housing market; builders are finding it difficult to compete in an environment of rising oreclosures and tighter underwriting conditions for home mortgages.

A few comments on the eventual recovery:

The Oregon economy likely remained in recession in May. That said, the pace of deterioration has slowed; the six-month annualized change in the index improved significantly over the past two months, from -11.8 percent in March to -8.0 percent in May. Similar improvement signaled an impending end to the 2001 recession, and would be consistent with the prediction that economic growth would firm in the second half of 2009. Still, caution is warranted. The UO Index has not yet turned upward, and six-month change remains well below rates normally consistent with economic expansions, and more than half of the index components remain below six-monthago levels. Finally, there is a strong possibility of a “jobless recovery” as the economy continues to face structural adjustment issues that limit the pace of growth.

Case-Shiller report still shows no signs of bottom for Portland

portlandhousing@yahoo.com (Clint8200) — Wed, 01 Jul 2009 15:00:00 +0000

The S&P Case-Shiller Index is based on observed changes in home prices. It is designed to measure the increases or decreases in the market value of residential real estate.

For each home sale transaction, a search is conducted to find information regarding any previous sale for the same house. If an earlier transaction is found, the two transactions are paired and are considered a “repeat sale.” Sales pairs are designed to yield the price change for the same house, while holding the quality and size of each house constant.

Sales pairs from the following counties are included in the Portland index: Clackamas, Columbia, Multnomah, Washington, Yamhill, Clark (WA), and Skamania (WA).

The first graph shows all historical data for Portland, Seattle, and the 10 city index. The Portland residential real estate market has fallen 16.0% in the last year.

The second graph highlights the changes since the Federal Reserve stopped lowering interest rates in June of 2003. The Portland index is currently at 146.85; a decline of 21.2% since the market peak. The last time the index was this low was May of 2005.

The final graph shows the year over year percent change since June of 2003.

Case-Shiller Index adjusted for inflation

portlandhousing@yahoo.com (Clint8200) — Tue, 30 Jun 2009 15:00:00 +0000

It has been a while since I showed the Case-Shiller Index adjusted for inflation. Home prices go up for two reasons: first is a change in the value of the home, second is a change in the value of the currency used to purchase it. The second variable is called inflation. Removing inflation will allow us to isolate the actual value change in the housing market.

Oregon was in a very nasty recession in the 80's and home values suffered as a result. Some statistics (foreclosure rates & unemployment rate) for the current recession already exceed those levels set in the 80's.

If you ever read an article that says Oregon has the highest real estate appreciation rate over a 20 year period it is because of the depressed starting point set in the 80's.

The first graph compares the index adjusted for inflation and the index not adjusted for inflation.

The next graph shows Portland compared to some 'bubble cities' and some 'non-bubble cities'

Home values in cities like Dallas and Charlotte only increase in price as a result of inflation, so real estate isn't really an investment as much as a hedge against inflation.

The graphs are fairly clear, Portland was not one of the worst cities but it certainly did have it's own little bubble.

Homeownership no longer viewed as path to build wealth

portlandhousing@yahoo.com (Clint8200) — Tue, 30 Jun 2009 15:00:00 +0000

From MarketWatch:

Nearly half of American adults who participated in a recent survey said they no longer believe that homeownership is a realistic way to build wealth, the National Foundation for Credit Counseling reported on Monday.
The findings, from a recent survey of about 1,000 people, run counter to the long-held perception that a home should be part of a person's financial strategy, the NFCC said.
"It had been considered the cornerstone of wealth building," said Gail Cunningham, spokeswoman for the NFCC. Homeownership had been a significant tool that most people felt was necessary to prepare for retirement, she said.

Sorry for the delay in posting. I was out of town last week and forgot to schedule some posts.

Portland unemployment hits 12.3% in May

portlandhousing@yahoo.com (Clint8200) — Mon, 22 Jun 2009 19:38:00 +0000

Here are the metro area unemployment rates for May:

1,000 show up for entry level positions in Newberg

portlandhousing@yahoo.com (Clint8200) — Sun, 21 Jun 2009 15:00:00 +0000

From the Oregonian:

Oregon's high unemployment rate was on full display in Newberg Thursday and Friday as nearly 1,000 people showed up to apply for service-related jobs at an upscale hotel and spa.
The job fair to fill about 160 positions at The Allison Inn & Spa continues today at Joan Austin Elementary School in Newberg.

That kind of turnout underscores the dismal prospects for the unemployed, said Josh Harwood, a senior state economist. "At some point, any job becomes a good job."

For the third straight month, Oregon's jobless rate of 12.4 percent ranked second nationally, trailing only Michigan.

Job fair organizers said they expected a strong turnout, but were floored by the 600 applications submitted Thursday. At one point, those at the end of a very long line faced a three-hour wait to be interviewed for jobs at the front desk, restaurant, bar, spa and maintenance and engineering department.
"People just kept steadily coming in," said Sonja Haugen, general manager for Springbrook Properties, the Inn's developer. "Every two or three minutes, we'd get someone new."
The 85-room Inn is scheduled to open Sept. 23 on land owned by the Austin family, which also owns and operates A-dec Inc., one of the world's largest manufacturers of dental chairs and equipment.

Haugen said she didn't know how many of the 100 A-dec employees laid off in February due to a business downturn might end up being hired to work at The Allison. "We're looking for people with appropriate qualifications for each position," she said. "If they have qualifications for a particular job, they will be considered along with everyone else."

While most of the people applying for jobs at the Inn seemed to come from around Yamhill County, a number also reported living in Washington, Multnomah and Marion counties, Haugen said.

If the job fair was held in Portland it would have drawn over 2,000 applicants. This is why I favor Gov. Kulongoski's plan to offer low level, low wage temporary jobs. There is a tremendous over supply of people qualified to be gas attendants and front desk clerks who will not be able to find jobs right now and who choose not to go back to school. The plan basically allows the state to get some labor in exchange for the weekly unemployment check.

'California immigrants can never win in Oregon'

portlandhousing@yahoo.com (Clint8200) — Sat, 20 Jun 2009 15:00:00 +0000

From the New York Times:

Zachary Lauritzen, a student teacher at Summit High School, on Bend’s west side — the side some residents call “Little California” — said he was teaching a lesson in government when the topic prompted him to ask how many students had lived in California.
“Half of them raised their hands,” Mr. Lauritzen said.
“California immigrants can never win in Oregon,” said Philip J. Romero, an economist who has advised governors in both states. “In a boom, ‘They are crowding the roads and bidding up house prices.’ In a bust, it’s: ‘They alone caused the price of my house to drop by hundreds of thousands of dollars. They came up here without a job, and now we can’t absorb them and they’re competing for my job.’ ”

It is an interesting article-nothing new but good nonetheless.

Register Guard gets it right!

portlandhousing@yahoo.com (Clint8200) — Fri, 19 Jun 2009 15:00:00 +0000

I often criticize the local media for their far from accurate view of the real estate market so I figured I should give credit when they get a story right.

From the Register Guard:

This May, it would take 8.1 months to clear the inventory at the current rate of sales. Last May, the number was 8.6 months, according to the monthly Regional Multiple Listing Service report.

The numbers are way down from January, when the inventory of unsold homes would have taken 20.6 months to clear at the rate homes were selling.

But real estate professionals say the long-awaited decline in inventory is not a sign of imminent recovery of the local housing market. “I’m not optimistic that it will shift much from what we’re seeing now,” said Marcia Edwards, vice president of the Prudential Real Estate Professionals.

The article contains several realistic quotes from Realtors. I have no clue how Diane got them to be realistic but it is a nice change.

Once again The Columbian's summary for Vancouver wins the award for best spin and lowest integrity.

Bargain-hungry home buyers have started to step back into the Clark County real estate market, according to a report issued Monday.
Experts say the renewed interest in Clark County home-buying is being spurred by a host of factors, including an overall 14 percent drop in median selling price. In May, the RMLS reported the median price — half sold for more, half for less — was $215,000, down from $250,000 the same month last year.
"There are some pretty good buys at the lower-end," said Scott Mikel, a broker and owner of Scott Mikel & Associates in Vancouver.
Mikel believes the May increase in pending home sales will translate into an increase in closed home sales by August.

The 'overall price drop' listed in the article is wrong. That is the year-over-year price drop. The overall price drop is 20%.

Portland RMLS Market Action Report – May 2009

portlandhousing@yahoo.com (Clint8200) — Thu, 18 Jun 2009 15:00:00 +0000

The Regional Multiple Listing Service released the Market Action Report this week and the median sale price for May 2009 was $250,000; this is a 13.0% decrease from the median sale price for May 2008.

The Portland residential real estate market peaked in August 2007 with a median sale price of $302,000. Prices have now fallen 17.2% from that peak.

Months of supply (total inventory/monthly sales) sits at 10.2 months compared to the 9.2 months of supply for the same month last year. A balanced market has about 7 months of supply.

The first graph compares the median and average sale price with the months of supply. Click on any graph for a sharper image.

The second graph shows the total supply of homes available for sale. This is simply a calculation of the months closed sales multiplied by the months of supply. There are currently 14,555 homes for sale; this is a decrease of 15.8% from the same month the year before.

The third chart shows closed sales by month. There were 1,427 closed sales during the month; a decrease of 23.4% from the same month the year before.

The fourth chart shows new listings by month. There were 3,879 new listings during the month; a decrease of 25.1% from the same month the year before.

The final graph shows how affordable the median priced home is for a family of four. History indicates the ratio is usually between 2.5 and 3.0. Prices would have to fall 19.0% from the current median for the ratio to reach 3.0.

Scamps closes doors

portlandhousing@yahoo.com (Clint8200) — Thu, 18 Jun 2009 06:31:00 +0000

From KGW:

All five Scamps pet stores in Oregon and Washington have closed after the company that operates the stores filed for bankruptcy, KGW has learned.
A lawyer for Norstar Inc. filed with the US Bankruptcy Court on June 15, citing the current economy as a reason behind the filing.

“It’s a difficult economy, companies don’t survive, “ said Howard Levine, attorney for Norstar, Inc.

The company filed for Chapter 7 protection.

Scamps Attorney Howard Levine told KGW: "All animals were sold prior to them (Scamps stores) shutting down."

In late 2008, Scamps came under fire for allegations they knowingly sold sick animals.

A KGW investigation revealed customers who purchased dogs that immediately had health problems. KGW discovered that five animals purchased from Scamps within the past four years had health problems that ranged from dislocated kneecaps to parasite-related infections and roundworms.

I always felt sorry for the animals in the small cages there so maybe this is a good closure.

Sam Adams defaults on 'investment' properties

portlandhousing@yahoo.com (Clint8200) — Wed, 17 Jun 2009 04:05:00 +0000

From the Oregonian:

Embattled Portland Mayor Sam Adams is facing foreclosure on two houses he owns in North Portland but says he is catching up on his payments.
Hyperion Capital Group filed a notice of default on Adams' residence in Kenton. The mayor still owes $134,000, and according to the notice, has failed to make monthly payments of $1,023 since February. An auction has been scheduled for Oct. 16 at the Multnomah County Courthouse.

Hyperion also filed a notice of default on the house next door. Adams owes $122,393 on that loan and stopped making monthly payments of $959 in February.

County records show that Wells Fargo Bank may have purchased the loans.

"I am behind," Adams acknowledged Tuesday. He earns $118,144 a year as mayor.

"I've had to pay significant upfront legal fees, and now I'm getting caught up on my mortgage payments," he said. "That's all I'm going to say. This is a private issue."

Adams is under state criminal investigation after admitting that he lied in the run-up to the 2008 mayoral race about a 2005 sexual relationship he had with an 18-year-old legislative intern.

Everything is a private issue for Sam. A quick check of Portland Maps confirms Adams as the owner. It is also important to point out that Sam filed personal bankruptcy in the late 80's.

Only two weeks until the recall efforts begin.

Oregon unemployment rate sets new record

portlandhousing@yahoo.com (Clint8200) — Tue, 16 Jun 2009 15:00:00 +0000

From the Oregon Employment Department:

Oregon’s seasonally adjusted unemployment rate rose to 12.4 percent in May compared with 11.8 percent (as revised) in April.
The 12.4 percent reading was the highest on record since the current series began in 1976, topping the previous high mark of 12.1 percent set in November 1982.
The state’s unemployment rate remains more than twice as high as its year-ago level of 5.7percent in May 2008. The U.S. seasonally adjusted unemployment rate rose to 9.4 percent in May, from 8.9 percent in April.
In May, Oregon’s seasonally adjusted nonfarm payroll employment declined by 100 jobs, following a drop of 8,100 (as revised) in April. The May employment figures were by far the smallest job loss of any month over the past 10 months.

RealtyTrac ranks Oregon 12th for foreclosures

portlandhousing@yahoo.com (Clint8200) — Mon, 15 Jun 2009 15:00:00 +0000

RealtyTrac released their May 2009 foreclosure data last week and Oregon ranks 12th in the nation for per household foreclosures.

There were 78 notice of defaults last month, down 93% from the same month the year before. The bank files a notice of default when a mortgage payment is late and attempts to reconcile the issue out of court have failed.

If the homeowner doesn’t pay the default balance within 90 days then the bank records a notice of trustee sale with the county and schedules a trustee's sale. There were 2,276 notices of trustee sales last month, up 456% from the same month the year before.

Total Foreclosures are up 94% from the same month the year before. Total foreclosures include: notice of defaults, notice of trustee sale, and bank owned real estate.

The best way to compare state foreclosure rates is with a penetration or per household rate. Here is a comparison of the regions states. A larger number indicates fewer foreclosures. Oregon is experiencing one foreclosure for every 525 households.

Here is a heat map from Realtytrac.

Park Avenue West deails

portlandhousing@yahoo.com (Clint8200) — Sun, 14 Jun 2009 21:25:00 +0000

Ryan Frank wrote an article about Tom Moyer's stalled Park Avenue West building downtown. It doesn't really provide many new details but is a great summary of the impact of the project. You can read the article here.

Some South Waterfront units are starting to sell

portlandhousing@yahoo.com (Clint8200) — Fri, 12 Jun 2009 19:46:00 +0000

From the DJC:

Atwater Place in Portland’s South Waterfront neighborhood opened about a year ago, just as the economy was turning south and fewer people were buying condominiums.
The 214-unit, upscale waterfront condo tower fell victim to the effects of a credit crisis, rising unemployment and the bursting of the real estate bubble.
Atwater units are still not selling as fast as originally anticipated, but Todd Prendergast, a principal broker with Realty Trust, said he’s been encouraged by buyers’ interest in the tower and other South Waterfront buildings in the last two months.
Eight Atwater units have sold in the last month, compared with a rate of about one or two per month over the winter. The building is about 30 percent sold.
Prendergast acknowledged that some of the activity is normal for this season, as buyers start to emerge after winter.
He said another factor that could be spurring sales in South Waterfront is lower prices. He said that drops have been as much as 30 percent from the original asking prices – as much as $300,000 for some units.

Charles Turner drops asking price below one million

portlandhousing@yahoo.com (Clint8200) — Wed, 10 Jun 2009 22:35:00 +0000

The stalled housing market continues to impact Charles Turner's flip project at 2356 NW Hoyt St.

He just dropped the asking price another $50,000. The new asking price is below $1 million ($999,950 to be specific).

The Original asking price in October 2008 was $1,195,000.
In January he dropped the asking price $45,000 to $1,150,000.
In February he dropped the asking price $25,000 to $1,125,000.
In March he dropped the asking price $25,000 to $1,100,000.
In May he dropped the asking price $50,000 to $1,050,000.

Total reduction is $195,050 or 16% and the home has been on the market for 8 months.

Records show Charles purchased the 'fixer upper' in May of 2008 for $535,150.00 under SAPPHIRE DEVELOPMENT LLC.

We do not know how much Charles has invested into the property but we do know he is personally liable if the LLC defaults.