What's the deal with the Portland Real Estate market in the 1980's?
11-22-2010
If you are looking for homes you'll notice you won't come across many homes that were built in the 1980's. Why is that? Well for one interest rates got as high as 21% in Portland thus practically eliminating conventional financing as a tool to purchase real estate. Also unemployment was around 10% nationally so there were much less incomes being able to pay for a home. Banks would require more money down. There were no short sales. Appraisals were coming in too low. Inflation increased rapidly. Long story short it was very difficult for sellers to sell their homes. This had a dramatic impact on the investor that today makes their living on cleaning up and fixing up homes to sell to the public at a profit. Consumers earned less money and living expenses due to inflation cost more so it made it difficult to save for a home and be able to afford a home through a bank loan. Many homeowners had to resort to alternative methods of selling homes such as selling their home with an owner carry note if they were so lucky to have large amounts of equity, or selling them in a lease to own type situation.
I feel that depending on what happens with bank regulations and interest rates that we could go through something similar to what we did in 1980's.
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