Home Values Up Since 2011, Near Even With 2006

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From The Oregonian via Zillow

The Oregonian’s recent infographic on Portland home values shows an increase from 2011’s lows, but a market that is just now reaching 2006’s highs.  In Foster-Powell, the chart appears to have us hovering around the $215-220k mark for median home values; Mt. Scott-Arleta shows similar numbers, though maybe a tad below.  This is an improvement from the $175k range just two years ago.

While that jump is good news for the homeowners out there, it also suggests the cost to live along the western stretch of Foster is increasing.

Is that good news for a neighborhood that appears on the verge of breaking out?

Many will say yes, but the implications of a more expensive neighborhood should be considered, too.

What are your thoughts?  Do you own a home?  Do you rent and have concerns about the neighborhood’s affordability?  Is this just a city-wide trend that makes us no different than other neighborhoods?

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7 Responses to Home Values Up Since 2011, Near Even With 2006

  1. Ruben Medina says:

    While as a home owner I am happy that my home value has increased, my larger concern is that it has been accompanied with an increase in property taxes but not an increase in personal income. The increase in property taxes will not affect my status in the neighborhood but there are many that will not be able to afford the increase and will have no choice but to sell and move elsewhere. Those that don’t sell will likely have decreased discretionary income which will affect purchasing power and the local economy as a whole.

    • Cora Potter says:

      Ruben, for the most part, property taxes in our area do not increase more than 3% a year unless a levy or bond measure is passed. There is a statutory limit of 3%. In addition, most people did not get any sort of decrease when their home values went down, because the assessed values of Portland homes in most areas inside of 82nd are still lower than even the bottom of the market value of the home in 2008/9. Increases in market value have no effect on property taxes in the State of Oregon, and decreases in market value rarely have an effect unless the property loses more than 30%-40% of it’s value.

      • 3% is 3%. And if one’s employer isn’t offering COLA, that’s that much less money saved/earned and/or spent elsewhere.

        I think the general point is that increased value on paper doesn’t necessarily translate to money in the bank. Especially when associated costs come into play.

        • Cora Potter says:

          Understandable – but I really wanted to address the misconception that increased property value leads to increased property taxes. In Oregon, it doesn’t. The 3% increase is the assessed value “catching up” to the market value (although it doesn’t really even do that because market values often increase more than 3% a year).

          The main reason is that associating a market value increase with a property tax increase actually obscures the real reason why people’s property tax took a big (mine was over $100) jump this year, which is the PPS bond and the Library levy.

          So, the real reason why you have less to spend at Pieper Cafe is Portland Public Schools and the Library. And, from a voting standpoint, that was a choice. It wasn’t something that you can’t control like the housing market.

        • Cora Potter says:

          The other thing is the value on paper does help in that getting back to par allows a lot of people who were previously underwater or close to it, to refinance and save on mortgage payments.

  2. Very good point. The added wealth is only on paper, while real expenses hit now and in the present.

  3. Pingback: Happy Weekend, Foster! | Foster-Powell. A neighborhood blog.

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