The Oregonian ran a big story today on the sudden plummeting of condo sales in Portland called “Shadow Falls on Condo Market”. It quotes a bank official saying they cannot keep up with the cancellations.
We would like to remind our readers that the condo market was inflated in part to $53 million in tax subsidies and breaks to the most affluent in Oregon. You can catch the detials at John Karlock’s famous website SavePortland.com. Would you believe the photo at the right is of an $800,000 condo that (thanks to tax breaks) has to pay only $147 in property taxes? Such government intervention can artificially increase housing markets and create bubble busting drops more than is necessary.