The October 29th Addition of The Oregonian talks about the "record tumble" in Portland Home Prices compared to a year ago. The title is menacing and bleak, but you have to take a look at the whole picture to get an accurate picture of the market. The first thing that we need to take a look at is the difference between the Case-Shiller index and the RMLS statistics that I report to you each month.
The major difference, according to the article, between the Case-Shiller index and the RMLS is that the Case-Schiller index compares the sales price of a home to the previous sales price of that same home. The RMLS generally looks at Median and average home prices in the areas. Its arguable as to which index gives the best information, and I think that each is useful in its own way. This article is citing the Case-Shiller index, which in this case seems to be appropriate.
The second important point to note while looking at the article, or any piece of information, is what they are comparing. This article cites the data from Multnomah, Washington, Clackamas, and all counties surrounding Portland. When talking about the issue in such a general way, its easy to make you case and/or lose the point. Saying that Portland home prices are at a record low using all of this data is like saying its raining in the United States.
The fact is, there are still plenty of areas and homes where home prices increased during the 12 month period from August to August. Many of these areas are close in to the city, like parts of North Portland, SW Portland, NW Portland and SE Portland. Finding this information takes a little extra effort and the ability to view the situation from a different angle. I'm not saying that things couldn't be better, because they can. They just aren't as dire in some locations here in the City of Roses. Real Estate is very local, which is why it is important to hire an expert.
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