Southeast Division Street, nestled just Northeast of Tigard real estate, has finally reached a desirable level of maturity, after years of being pushed aside for highways and designated for urban sprawl. The Southeast Division Street today is a far cry from its bleak 1930s façade.
Today, this thriving stretch of Portland real estate houses restaurants like Lauro Kitchen (The Oregonian's 2007 Favorite), Pok Pok (Thai), Nuestra Cocina (Mexican) and Clay's Smokehouse Grill. Strolling along, you can find tattoo shops, art studios, funky furniture stores and a store with motorcycle jackets worn by Bruce Willis and Neil Young.
At the corner of Division and Southeast 26th Avenue, revelers of Portland real estate will notice a few new additions: the opulent Clinton Condominiums (which will be finished this summer), as well as retail establishments – a bakery, a yoga studio and a window coverings store.
"This has become a bustling little corner," remarks Portland real estate agent Tracy Wiens. "I love what's happening on Division!"She adds that the Clinton Condos are already more than half sold, with just nine units left. Prospective condo buyers can choose from 880 square foot 1 bedrooms for $269,900 or 1,469 square foot 2 bedrooms for $449,900.
Residents of this Portland real estate nook have a disdain for corporate America. When a Starbucks tried to move in, activists vandalized the building to let them know they weren't welcome. Instead, coffee lovers flock to homegrown favorite Stumptown Coffee Roasters.
In terms of Portland real estate near this funky street, there is much to choose from. At 1437 SE Division, a 1,592 square foot home built in 1924 (with three-bedrooms, two-baths) is selling for $465,000 and includes a sunroom, modernized kitchen and energy efficient furnace. In Richmond, near Stumptown, a turn-of-the-century home is listed for $259,000 and has its own recording studio and clawfoot tub! New condos at 6600 SE Division have two bedrooms, two baths, a slate fireplace and stainless steel appliances, starting at $219,500. Another new condo project at 10026 SE Division offers units from $105,900 (489 sq ft studio) to $169,900 (2 bed, 2 bath) with features like Shaker style maple cabinets, French balconies, 9-foot ceilings and fireplaces. Residents can even choose to lease the Portland real estate units for a year before deciding if they'd like to buy.
Consumers have had the wake-up call they needed. We're starting to feel the penny pinch in fuel and food costs, forcing us to become more aware of how our own consumption habits affect the environment. We want cleaner air, cleaner lakes, energy efficient Portland real estate and sustainable practices.
New office buildings going up around the city are employing LEED standards in the pre-construction phase. "Sustainable" Portland real estate includes things like natural lighting with large windows, energy efficient appliances and light fixtures, renewable building materials, effective waste disposal, responsible landscaping processes and air circulation systems.
Employers are also finding ways to save the environment, as well as create a positive impression with consumers: they place recycle bins at work stations, make double-sided photocopies, use non-disposable dishware, use Energy Star appliances, use laptops and inkjet printers, install light dimmers and unplug power strips at night. This is a great way for businesses to save money, enhance the work environment and attract customers, says Alexis Allan from Washington County's "Recycle at Work" program.
At Bethany Village Portland real estate, retail stores, restaurants, residences and offices have streetlights that turn on automatically, as well as energy efficient light bulbs, water heaters and showerheads. Since they are "the nucleus of the city," they want to set a good example, managers say.
At Ticor Title Insurance offices scattered throughout Portland real estate, "every employee has a hot button they care about – organic produce, waste reduction, biking to work," says Kimberly Allen, a senior escrow officer. "It has given us a common goal and a safe place to think about something bigger than ourselves, and so when we can connect on that level we actually are more productive, we feel more involved, and we feel more empowered." Here they avoid disposables, buy renewable power, recycle at their work stations, keep coffee table books rather than magazines in their lobby, use recycled paper and replaced light fixtures.
Additionally, Vernier Software uses roof top solar panels to generate 115 kilowatts of electricity each day (enough to power 38 PCs for eight hours, a clothes dryer for 29 hours or 115 40-watt light bulbs for the day!) They also recycle 75% of their waste, plant trees, use mercury fluorescent lights, use water-saving dual-flush toilets and have a bike room / shower for cyclists.
The Housing Authority of Portland real estate knew people were clamoring for affordable housing units after a yearlong moratorium, but they weren't expecting anything like this. More than 350 people lined the sidewalks outside the main office at 135 SW Ash before noon, waiting for hours to fill out applications. Within four days, 2,000 people signed up.
"We've had a large response, which indicates a large need," said Erik Fabian, assistant property manager of Housing Authority Portland real estate.
The agency had to suspend enrollment in April 2007 once the waiting list for the 2,600 units reached almost two years. Since some houses have less than a three-month wait, 33/37 complexes are now accepting applications again.
To qualify, individuals must have less than $54,300 annual household income and positive references from past landlords. The elderly and those with disabilities or families will get top priority for the affordable Portland real estate. The Section 8 housing vouchers that pay up to 70% of the rent for low-income people won't open up for at least another year, officials say.
The opening of the waitlist is "both good news and bad news" says Michael Anderson from the Community Development Network. "It's good for those who are in immediate need of housing, but it's also a reflection of the bad state of affairs that the housing infrastructure is in." He adds that 16,000 affordable houses need to be added in the Portland real estate market to meet demand.
Forecasting has become the new Optimism. We're bombarded with so much doom and gloom in the news that it's hard to believe there's not a silver lining or good fortune just around the corner! According to the 2008 Greater Portland Prosperity Index released by Greenlight Greater Portland, the Portland real estate region can anticipate 100,000 new jobs and a 29.1% increase in gross regional product by 2013!
The first annual Index takes a look at the Portland metro and compares it to nine other competitive markets, including Seattle, Denver, Sacramento, San Francisco, San Jose, Los Angeles, San Diego, Albuquerque and Austin. In assessing the city, areas like business, demographics and quality-of-life were examined. Compared to other areas, the Portland metro is poised for the second-highest growth, with Austin, Texas leading by a hair.
Greenlight also found that Portland real estate is one of the most affordable regions, with far lower commercial and residential prices than Seattle and California particularly. Portland real estate like office space costs just #25.30 per square foot, compared to $63.70 in Los Angeles or $46.90 in San Francisco. Median housing price, at $295,300, is the fourth-lowest. Average rent for a one-bedroom apartment ($875) is the third-lowest, behind Denver and Albuquerque.
The Index projects that Portland's business services sector will increase 23%, adding 170,300 workers by 2013. Similarly, the Index suggests Greater Portland's population will grow 8% over the next five years, to nearly 2.4 million people. Based on "quality of life," Portland real estate leads all ten study cities in number of bookstores per million residents (135), wineries per million residents (69) and brewpubs per million residents (23).
Newsweek named Portland real estate the #5 "Best Planned City For Design In America" -- beat only by LA, Boston, NY and Chicago. As one of the smaller cities on the list, Portland was chosen for the way architects blend the city in with the natural surroundings, the "distinctive urban aesthetic" and the 72% approval rate when citizens are asked if they're happy with the quality of their city's architecture.
To come up with the list, judges looked at cities with more than 500,000 residents, the number of Portland real estate on the National Historic Register, the quality of public transportation, the number of sustainable buildings and the number of architectural design awards won.
The report's authors at RMJM Hillier wrote, "Realizing that economic opportunity and environmental beauty can be mutually compatible, cities are adopting policies or instituting programs to clean up the environment, build quality buildings, enhance infrastructure, and promote community through public spaces."
They added that 3.3 billion people will live in urban areas like -- Portland real estate -- by the end of 2008 and that design is of ever-increasing importance to a city's vitality and endurance. Tourists will naturally migrate to more attractive cities and citizens will want to live in a harmonious relationship with their environment. Does design equate with personal happiness? You bet it does!
As you may have heard, it's "a buyer's market" these days and unprecedented deals are being offered by developers and Beaverton real estate agents alike. For the end of June, Intex Custom Homes, a builder of Beaverton real estate, is looking to close out their last five luxurious bungalows. The event will take place at the Indigo Ridge neighborhood, situated in the Cooper Mountain, Beaverton real estate area.
First of all, buyers will have the opportunity to "name their own price" for the Beaverton real estate – and as an added incentive, they will also get a free membership to the "Intex Pioneer Club" that includes allowance for gas, groceries an yard work, as well as golf at the Reserve and Portland Trail Blazer club seats for the 2008-2009 season!
"This sale is the best buying opportunity we have ever offered on our homes. The homes have magnificent finishes and we expect a tremendous response," said Joe Bauschelt, President of Intex Custom Homes.
"The architecture of the bungalow style homes that we build has been very popular, once buyers see the homes it's hard not to fall in love with them," added Bauschelt. The exteriors catch the eye with stones, pointed roofs, wooden accents and magnificent porches.
The Beaverton real estate Indigo Ridge neighborhood offers floor plans from 2,927 to 3,583 square feet and feature red oak hardwood floors, custom built-in cherry bookshelves, ornate cherry columns, granite countertops, stainless steel Energy Star appliances, four large bedrooms plus office space, three and a half baths, octagonal flooring in the powder room, a master bath with three showerheads, a central vacuum system, a 90% High Efficient "Green" furnace and large covered porches, priced from the mid $600's.
First impressions are critical in Lake Oswego real estate. People paying $500,000 - $1 million aren't looking for a house – they're looking for a home, a lifestyle, a certain warm fuzzy feeling, a property that exudes their persona.
"You need to get the potential homeowner's attention in the fast-paced world where everyone has a limited attention span," remarks Heather Wood, designer for Meadowood Design Group. "This happens 10 seconds into the front door."
Making that Lake Oswego real estate speak to prospective home buyers is more than just sweeping the floors, painting the walls and keeping the place tidy. Wood says it's about making the home look as unique as possible, so it stands out from the competition – things like adding furniture and accessories to create warmth and personality or give people an idea of what living there might be like.
One piece of Lake Oswego real estate at 567 10th Street sold for $1.3 million less than three months after staging it. "Obviously, you can't stage the entire house; it's not a model home. The rooms that people are interested in are the rooms that sell the home – the great room, kitchen, dining area and master suite," Wood said, "and if you have a challenging area or room that is small or people wouldn't know what to do with."
Her emphasis is on creating a room that makes people visualize themselves living in the Lake Oswego real estate. For example, they see a comfy chair near a window and think of relaxing after work with a book. Or they see a large dining room table and realize that the room is still quite large, even with furniture in the space. A lamp and calendar placed on a built-in desk draws the eye to it and emphasizes its usability.
She adds that you don't have to spend a fortune to sell a home. In fact, some of her most successful shopping has been at TJ Maxx and Target. Find something unusual and "unexpected," Wood advises. She also uses pieces from local furniture stores, which advertises for them and adds a bit of uniqueness. Sometimes people are interested in purchasing the Lake Oswego real estate fully furnished because "they can't imagine it any other way!"
"I've always had an interest in houses because there are unlimited possibilities," said 24-year-old Tualatin real estate agent Jon Hanson. "Who doesn't love real estate? People always love to tell their real estate stories, whether it's the house they should have bought or if they are just asking about the market."
Tualatin real estate agents will tell you, they've got to pull every rabbit out of the hat and every trick out of the bag to sell a house these days. "As a new agent, I have to differentiate myself in the marketplace," Jon understands. "Everywhere I look I see opportunity. It surrounds us, but in order for us to capitalize on it we have to see through the pessimism that surrounds us."
Some Portland real estate agents say there's something to frown about: The Stardard & Poor's Case-Shiller Index showed Portland real estate prices hit a record low for a year-over-year decline in April, which is the first time the Portland area has seen such a decline (since the 1980s!) Furthermore, median home prices are down 3.2% from last year.
Even so, Hanson remains optimistic. "I have goose bumps thinking about the opportunities out here for people," he said. "Right now I'm working with a number of buyers. They see that real estate might not be this affordable again. After we come out of this downturn, people will realize they should have bought at a discount a year ago."
So what are Jon Hanson's effective strategies for moving Tualatin real estate? He says it's simple: he gets up early, he leaves his ego at home, he puts buyers first and he approaches everything with a "can-win attitude."
"People always ask me, 'how is the real estate market?' The real question is, 'where is the real estate market?'" Hanson remarks. "While today it may be with first-time homebuyers and discounted properties, in a couple of years it may be an influx of baby boomers looking for retirement properties, or 1031 exchanges — something completely different."
Everything is expensive these days: mortgages, interest rates, food and fuel, to name a few. When you have to save money, where do you cut corners? For many Americans, driving has never been a fun task – especially in rush hour, bumper-to-bumper city traffic. For the average 25-mile-a-day commuter, the fuel hike has taken an extra $50 from the monthly budget, according to Mark Zandi at Moody's Economy.com. According to the Bureau of Labor Statistics, the average household spent $1,422/year on gasoline in 2003 –but will spend $3,196 this year!
Now that the suburbs are not only a time-consuming trip, but also an expensive one, people living in Portland real estate are starting to crave urban living, studies show. An added bonus to downtown living, aside from shorter commute, is the idea that one can live without a car at all! Additionally, residents are closer to all the amenities and entertainment and they can also live maintenance-free in a luxury condo or townhome.
"It's like an ebbing of this suburban tide," said Portland real estate economist and consultant Joe Cortright. Mr. Cortright reports that in Chicago, Los Angeles, Pittsburgh, Tampa and Portland, real estate prices have fared much better than their suburbs. "There's going to be this kind of reversal of desirability. Typically, Americans have felt the periphery was most desirable, and now there's going to be a reversion to the center."
Recently, the AARP website ran an article promoting Portland real estate as a desirable retirement location where "European charm meets environmental nirvana." While the 155 rainy days can be a downer, the article said retirees just love the miles of safe bike lanes, the Pearl District shopping and the reasonable $280,800 median house price.
"Portland just has everything we need," says fifty-eight-year-old Ralph Cohen. "We like the nightlife. We like the theater. It's got navigable water, which is really important to us. And while we've lived many other places and looked at other cities as possible retirement spots, including Olympia and Seattle, they just don't have all the things that Portland has to offer."
For Howard (76) and Manya (70) Shapiro, the "green" features of The Henry condominiums were irresistible. Howard explains, "All the water is recaptured, it's heated with solar, and there's no formaldehyde used in construction." He also noted that the many walking distance amenities – movie theaters, restaurants and parks – are all just a block away.
"The blocks are smaller, which adds to the European feel and makes walking places easier," says Steve Rudmond from the Portland Housing Authority. He says that the bus and light rail system gives Portland real estate a competitive advantage as well.
Portland real estate is like a renaissance, say retirees. The abundance of progressive, forward-thinking developments, the care taken to create aesthetic communities and the citizens' desire to maintain a sustainable future makes Portland one of the nation's most unique cities.
"Portlanders value sustainability and affordability in their Portland real estate" says a recent VisionPDX community survey of 13,000 residents. While the market has shown some signs of slowing, the demand for green housing has remained stable. Prospective home buyers know that paying a little more now can save a lot more in the end. Technological improvements have made it to the spotlight, enticing more and more Portland real estate developers to hop onboard. But the bottom line question is: Can housing be green and cheap?
For the most part, its local nonprofit agencies that are stepping up to the plate, ensuring that Portland real estate remains sustainable but affordable. HOST Development Incorporated is wrapping up the Helensview Homes single-family neighborhood at Northeast 64th and Killingsworth. Green features include things like nontoxic paint, recycled materials, low-flow water fixtures, native landscaping, Energy Star appliances, large insulated windows and indoor air purification. The 40 new homes and 12 condos will meet all LEED standards for $196,000 - $248,000.
"We wanted to show that with good planning, efficient building techniques and reasonable cost cutting, we could build sustainable homes at an affordable cost," said HOST director John Miller. He adds that prices remain low for this Portland real estate because they're not out to make a profit, they bought the land at a good time, they maintain favorable relations with contractors and they have access to low-interest loans.
HOST project manager Devin Culbertson says that Portland real estate developers don't need to invest large amounts of money on opulent bamboo flooring or costly recycled materials to gain LEED points – but rather, the simple things like quality insulation, low-flow fixtures, quality windows and energy-efficient light fixtures can offer more substantial benefits for a lower price. Culbertson adds, "When we took additional steps to get LEED certification, we focused on functional solutions – even if they're not the most glamorous."
For more evidence of affordable "green" housing, ask your Portland real estate agent about: Hoyt Yards (Pearl District) and Central District (South Waterfront).
Portland real estate… for $99,000? Yes, it's possible, says HyBrid architectural firm and Owen Richards Architects – and these houses would be no shacks either! They'd be 1,400 square feet, including three bedrooms and 1.5 bathrooms. Floor plans will be flexible, allowing for an easy office or fourth bedroom conversion. Added options such as larger kitchens or nice landscaping are also available, since the housing plans came in under budget.
The Hybrid/Richards design will be stacked up, rather than spread out and will use natural ventilation and a solar-powered fair to facilitate air circulation. The Portland real estate would be built using sustainable materials like magnesium oxide board and will contain cisterns that collect rainwater for toilets and irrigation.
One thing is for sure: area architects, designers and engineers are looking to the future of Portland real estate. Last year there was a "Skinny Lot" contest with 426 entries for narrow Contemporary houses. Unfortunately, most of these designs were… well… "ugly," and never made it off the ol' drawing board. The intention was there, though, to create a design that used less space and that was distinctively Portland.
Though there haven't been any plans to build the award-winning $99,000 house in the Portland real estate market just yet, many feel this proposal is the perfect fit for the area, with its affordability and sustainability.
The median price of single family Portland real estate in April 2008 was $275,000, compared with $285,000 in April 2007. After years of significant growth, the 3.5% price drop was a real letdown to Portland real estate agents and developers.
"That's not a disasterous scenario," Portland real estate economist Jerry Johnson comments, "but it's not good."
It's hard to fathom that the average home price was $302,000 as recently as August 2007, with prices falling 9% since the peak. Closings fell 39% in April, compared to the previous year and inventories of unsold homes rose to an average of 10 months, owing in part to over-development. Of course, Portland real estate declines are nothing compared to Arizona, California, Florida and Michigan.
Some Portland real estate agents are scratching their heads, wondering, "Where have all the buyers gone?" Kathy MacNaughton from Realty Trust says that buyers who could have had 10 different mortgage companies vying for their business a year ago are now ineligible for even one, by the new standards. Buyer confidence has dropped as people worry that home values will keep depreciating and many cannot sell their current homes.
However, for the savvy market investors, Jerry Johnson says that market adjustment periods are great buying opportunities. Other Portland real estate agents add that some areas near the Willamette River, Wilsonville, West Linn and the Pearl District are always thriving, no matter what. Vacation homes near Lake Oswego are a sound investment, as owners can rent out Portland real estate there by the week or by the month and turn a decent profit.
According to Pete Schulberg at the Portland Tribune, the Pearl District is a thriving sea of developers, Portland real estate agents and eager buyers. Hundreds of new condo and rental units will spring up in the next six months as Pearl District sales surpass the rest of the Portland real estate metro.
"The Pearl is still hot," says Portland real estate agent Debbie Thomas, "and I don't see any slowdown, at least immediately."
Prominent Portland real estate developer Hoyt Street Properties has already sold out 90% of its latest project – the Pinnacle Condominiums, selling lofts from $259,000 - $397,000! Out of a total inventory of 3,000 condos and lofts, only 84 currently remain available in the Pearl District.
"Everything is still getting bought up," explains Terry Wilson, a consultant for Bean Investment Portland real estate. "You still have some people who want to live there -- the older people who don't want to take care of a yard and the younger people who work downtown and want the urban lifestyle."
In other areas, existing apartment units are being converted into condos and townhouses. At Hoyt Street's Lexis Apartments, if the 131 tenants don't want to buy their units at a discount price, there is a waiting list of 300 interested buyers. Prices will range from $150,000 (535-square-foot studio) to $500,000 (1,300-squre-foot two bedroom), which shows that the luxury Portland real estate market has been unaffected by economic downturns.
For those tenants who still need affordable Portland real estate in the Pearl District, the Sika Apartments (at Northwest 12th Ave and Northrup Street) are offering 210 studios and two bedrooms ranging from $440 - $700/month. The Portland Development Commission is assisting with financing for these units and many Portland real estate agents state that rents are still at pre-2004 levels but are expected to rise.
Sustainable, high-density urban design is the future of Portland real estate and excels amid a gloomy economic forecast. Many Portlant real estate developers remain cautious, due to so many vacant units sitting on the market, but a greater emphasis on creating environmentally-friendly space and mixed-use facilities is giving developers a much-needed boost. Warehouse conversions are still all-the-rage, revitalizing post-manufacturing-era neighborhoods and starting fresh.
"Portland is so far ahead of the rest of the country in sustainable design," Ankrom Moisan Associated Architect's Richardson says. "Even cities like New York are not at the same level of sophistication in seeing the big picture. But most local firms are not working all over the country the way we are. Most are still a local or regional practice. It's an untapped resource."
Gerdling Edlen Development is bustling with business these days. "We can only build what the market allows us to build," founder Mark Edlen explains. He says they're renovating the former Meier & Frank warehouse to adhere to the Leadership in Energy and Environmental Design standards, thereby meeting the public's demand for environmentally-sound office space in the Pearl District. Additionally, they're working on the $177-million Cyan condominiums, featuring smaller units at lower prices to accommodate downsizers. They've seen success in the award-winning Brewery Blocks development and the new South Waterfront neighborhood because they remained in-tune to what the public wanted – both aesthetically and technically.
"If we just continued doing condos in Portland now, we'd be in serious trouble," says Kip Richardson from Ankrom Moisan Associated Architects. He says that Portland real estate sees a market for energy-efficient single family units and office spaces, but the booming market for condos and apartments lies elsewhere – Long Beach California, Tucson Arizona and San Jose California, for instance.
"For a few years, developers felt it was a slam dunk economically to do these projects," adds Portland real estate developer Randy Rapaport. "But they overshot it in terms of getting ahead of the demand." He adds that a revitalized urban core and extending boundaries will fuel a long term demand for housing, notably sustainable housing. After all, that's Portland's signature style.