Wednesday, November 16, 2005

Portland Bubbling

Looks like there's a bubble in Portland, Ore. See this story by Ed Teachout and KATU Web Staff:
PORTLAND, Ore. - Home prices have risen so fast that many people could not afford to buy their own home at today's prices.

Nancy Daggett bought her small north Portland home five years ago for around $100,000.

The house is plenty big for her and her husband, plus the family dog, but Portland's hot housing market has the couple thinking about selling.

"In five years time the market has really blown up," said Eric Daggett.

The couple discovered their neighbor's home, which is smaller than theirs, just sold for more than twice what the Daggetts paid.

"I was shocked and when I heard that, I said 'we need to sell," Nancy said.

However, if the Daggetts sell their home, would they be able to afford another one? The answer is probably not.

Home prices in the Portland area have more than doubled in the past 10 years. Statistics from RMLS show the average Portland home now costs $301,000, a price tag that has priced some homeowners out of the housing market.

Find the rest of the story, and some graphics, at this link.

— The Boy in the Big Housing Bubble