Portland Neighboorhood: Pearl District

Discover every week a new neighboorhood in Portland.
This week I will be highlighting the Pearl District.

The Pearl District has undergone significant renovation and is now Portland's premier urban-chic neighborhood. Many of the aging industrial warehouses have been turned into luxurious lofts, townhouses, and condos. The urban renewal began in the late 1990’s and it appears will continue into the future with the development of the North Pearl District. Today the Pearl District is an award-winning, internationally recognized leader in urban renewal. Often considered the "gold standard" of live, work and play mixed-use space, the Pearl District is a superb affirmation that a miraculous quality of life can rise from the ashes of urban decay. First Thursday is a popular event with galleries showcasing the best of local artists as well as live music and wine tasting. Powell's City of Books, a Portland icon, is the world's largest independent bookstore in the United States and occupies a full city block. If you work downtown and enjoy city living, this is the place to be for an easy commute. Walk or take the Portland Streetcar, light rail MAX train, or Tri Met bus to work and play. Located along the Willamette River downtown in an old warehouse district, the neighborhood offers a feeling of urban historic charm.

The Portland Pearl District is ever-changing and full of new development. New buildings are being erected in every direction. The bustling streets are lined with upscale shopping boutiques, art galleries, unique antique and home interior stores, and the requisite coffee shops and restaurants. This continues to be seen as a trendy and upscale urban locale for hip urbanites who want to live in the center of it all.

Boundary: The boundaries for the pearl are Burnside to the south, the Willamette river to the North, NW 16th to the West, and Broadway and the waterfront to the (north)east. It is bordered by the Old Town, China Town, Downtown, Goose Hollow, and Northwest neighborhoods, and the Willamette River.

Typical price and style of homes: New and converted warehouse lofts and townhomes. Prices range from the mid $100k’s for a small studio on the edge of the Pearl to multi-million dollar penthouses with views in the heart of it all. The average price is $547,312 and the median price is $440,000.

Points of interest: Jamison Square, Powell's City of Books, Art in the Pearl, Pearl restaurants and shops, First Thursday, Brewery Blocks, North Park Blocks, Portland Armory

* Source for average and median home prices: Portland Monthly published April 2008

Portland Real Estate Market Update for October

October Residential Highlights
Market Activity continues to be on the decline when compared to 2007. Pending sales fell 39.6% when comparing October 2008 with October 2007. The number of closed sales and new listings also fell, 21.4% and 21.6% respectively.

Comparing October to September, we also saw a decline across the board, although not as intense as the comparison above. There were 25.6% (1,268 v. 1,705) fewer accepted offers in October. Additionally, there were 14.2% (3,605 v. 4,200) less new listings added to the inventory. Further, there was a 10.7% (1,465 v. 1,640) drop in closed sales.

At the month’s rate of sales, the 16,257 active residential properties would last approximately 11.1 months.

Year-to-Date
Comparing January-October of 2008 to the same time period in 2007 there have been 31.3% fewer closed sales and 30.2% less accepted offers this year. In addition, there was a 7.5% decrease in the number of homes added to the market.

Affordability
Due to a decrease in the median home price in the Portland Metro Area ($267,000 in September) and a drop in the average interest rate (6.04% per Freddie Mac) a family earning the median income ($67,500 in 2008, per HUD) can afford 109% of the monthly mortgage payment on a median priced home according to a formula from the National Association of Realtors®. The formula assumes that the buyer has a 20% down payment and a 30 year fixed rate of 5.97% (per Freddie Mac).

Source: RMLS Market Action

The apartment market is stable, but uncertainty abounds

With an unprecedented 2,500 new luxury units about to hit the downtown apartment market, it only fuels the uncertainty.

In the realm of multifamily real estate, the divide between buyers and sellers has never been wider, industry analysts say.

Sellers are looking backward, at better times; buyers are looking forward, toward an uncertain market.

Those better times were last year, as it turns out.

At this point in 2007, there had been 258 multifamily buildings sold in the Portland area. As of late September 2008, there had been only 69, said Jeremy Snow, a real estate appraiser with PGP Valuation.

Buyers are holding tight, waiting for signs the market is improving, Snow said.

Click here to read the full article in the DJC.