State Real Estate Market Outlook
Realty Market Outlook Oregon State Profile - Spring 2006
Housing market conditions warrant monitoring
Oregon continued to attract new residents and reported a record level of housing permits issued in 2005. Year-over-year home price gains accelerated to 19.5 percent in fourth quarter 2005 and continued to outpace the nation. The state likely will continue to report solid construction job gains in 2006 as a result.
Nevertheless, deteriorating house price affordability, particularly in Medford, and rising interest rates may weigh on the state’s housing market going forward.
Innovative mortgages and investors may be influencing Oregon housing demand. Interest-only and negative amortization loans accounted for 46 percent of non-prime mortgage originations in the state during the first 11 months of 2005. During the same period, investors and second-home purchasers accounted for 26 percent of Oregon Alt-A mortgage originations.
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