FlashFact: Nearly 1/3 of Oregon Home Sales are Foreclosures

Oregon Transformation Project

Nearly 1/3 of Oregon Home Sales are Foreclosures

Oregon is one of 7 states nationwide where foreclosures make up 32% or more of home sales.  In the first quarter of 2011, bank-owned home sales made up 28% of all home sales in the country.

The average foreclosure sales price of a home in Oregon is approximately $176,000, which is 24% lower than a non-distressed home sale price.

The chart below lists the 7 states with the worst foreclosure home sale rates:

Not only have home prices in the metro areas reached their lowest levels since 2002, but the total percent drop in home prices in the last decade is greater than what the U.S. experienced during the Great Depression.

With the absence of a healthy private sector in Oregon and an unemployment rate that continues to exceed the national average, Oregonians can and should expect this housing trend to continue.

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Posted by at 05:00 | Posted in Economy | 21 Comments |Email This Post Email This Post |Print This Post Print This Post
  • Bob Clark

    A new book out by a New York Times writer, no less, supposedly lays the blame for the housing bubble and subsequent global financial meltdown squarely at the feet of a confluence of Democrat party operatives attempting to buy votes by pushing loans to the “underpriviledged” who ultimately could not afford them.  I think this only partly true because another good account is given by the book “Quants” which tells the story of Investment bankings’ love fest with high end mathematics which help lure in unsuspecting investors like pension funds into the great excesses of housing finance.  Jim Rogers a well recognized commodities and futures investor notes if Greenspan would have not rescued banks from the Long Term Capital Hedge Fund collapse in 1998, then very likely the love fest with high end mathematics would have ended then and not been allowed to grow even more excessive in the 00s.  Another point is if Clinton and the Republican congress had not repealed Glass Steagal (Great Depression origin), banks would not have been able to feed bank deposits into the securitization of subprime mortgages at the excessive rate in which it was done.

    Really what it boils down to is we’ve got to cut back sharply the size and the role of the federal government so as to stop the crony capitalism which has ensared us in the last decade.  Moreover, the problem with mathematics in finance is (1) correlations between asset classes are always changing and (2) recorded history is not a complete (universal) set of outcomes.  Unmeasurable uncertainty will always persist in the world of investment no matter how much financial math wizards might try to convince you otherwise.

  • Rupert in Springfield

    With the election of Kitzhaber, a man with no new ideas, no plan and nothing really to recommend him other than party affiliation Oregon has made clear our main export shall be jobs, our main industry welfare. The good news none of this is a surprise, even those who voted for Kitzhaber weren’t expecting much to change. On the upside though, its a great time to buy a house.

    • Honest Realtor

      It’s only a great time to buy a house if you want to see your investment drop by 10% by the end of the year.

      • Rupert in Springfield

        I sure don’t think so. Yes, your investment might fall, but interest rates will likely rise. If you are going with a 30 year mortgage, 10% of the sales price can be overtaken by a rise in interest rates in a heartbeat.

        • valley person

          Maybe it is an maybe it isn’t. As an investment, its questionable if you look at the median house cost relative to the median income. Prices still haven’t declined quite enough yet to get back into the normal historic range. They need to drop another 20% or so to get there, or wait for the median income to catch up, which may never happen at the rate we are going (backwards since 2001).

          As an alternative to paying rent, a house has always been a good idea as long as you plan to live there more than 5 years. Establishing some equity is better than just sending checks to someone else who is building equity.

    • just doing the math

      Yes, it is a great time to buy a house if you are a bottom feeder, willing
      to purchase a forclosed home. Hey, but this is America, land of of the
      bottom line and opportunity even at the cost of someone elses misfortune.

  • oregonnative

    It is a society that blames everyone except themselves for signing on the dotted line. 
    Yes, someone in Washington DC, thought that everyone should own a home and most likely for votes. I have been through three life turning depressions, 1982 lost everything because of high interest rates, tech bust lost half, and this most recent stock crash a couple years ago, lost half. These situations sure make a person move with caution, and learns not get on debt. As far as living in Oregon, 50% + are working for the state in some form or another, therefore the mom & pops have no chance as they are supporting our elected officials that are just looking for the votes, while dishing out the money.

    • 3H

      I’m not sure what you mean by some form or another – according to the BLS (and if I read the statistics correctly) 17% of the workforce is in the Government sector.   That may or may not be too much, but it’s a far cry from 50%.  Where did you see the 50% number?

      • valley person

        He made it up because it sounded better.

      • valley person

        He made it up because it sounded better.

      • Steve Buckstein

        According to a 2007 study, about 20% of Americans work directly or indirectly for some level of government, and another 30% or so are primarily dependent on government programs for their income. The two categories totalled 52.6%.

        source:
        https://www.csmonitor.com/2007/0416/p01s04-usec.html

        • valley person

          Perhaps. There are a lot of geezers on SSI and Medicare. I plan to join them in few years.  But I guess Oregon is not unique in this case.

        • 3H

          The article did not say “primarily dependent”, the article claimed that the 32% “now receive significant income from government programs.”   Significant income is not necessarily the same thing as “primarily dependent”.  And this includes everything, including Social Security (which most works have paid into) and even student loans.   At the end of the day, that is still different from the claim that 50% are working for the government.   And you’ll note that Oregonnative said working for the state.  Since many of those programs are federal, his percentage is grossly inflated (unless he didn’t mean it to mean the state of Oregon – but rather the more generic “the state”).

          • Steve Buckstein

            Oregonnative either misspoke or got the facts wrong.I think we can agree on that.

          • valley person

            It would be nice to see Oregonnative agree to it. 

          • valley person

            It would be nice to see Oregonnative agree to it. 

          • oregonnative

            Sorry everyone, if at this late stage anyone is still interested, I will outline where my suggested numbers come from.

          • valley person

            So you did not misspeak or get your facts wrong? You stand by your statement that 50% of Oregonians are “working for the state in one form or other?”

          • valley person

            It would be nice to see Oregonnative agree to it. 

          • valley person

            It would be nice to see Oregonnative agree to it. 

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