Sara Goodwin - Portland, Oregon Appraiser

44 mid-century urban homes otherwise planned for demolition have been saved by contractor Matt Burton in hopes of relocating them somewhere in the Portland area.

Once said and done, the cost to move these houses with run $15,000 a piece. In addition, Burton would like to build basement foundations for these houses in order to turn them into duplexes which will in turn add $115,000 to each house... not including the cost of land that they have yet to find.

The would-be demolition is to make room for some additional facilities for Concordia University. (The image below is of their latest library expansion project).

This is quite a feat considering that the company and the city would like to keep all of the houses together and near city transit lines. This would mean that a valuable four acre location would need to be located and purchased. As much as I appreciate the salvation of these houses, I've been all over this city and I can't think of anywhere in the immediate urban area on the transit lines that would fit the ideal spot.... Except for one... Strangely enough, just down the street from Concordia University ten acres of land is where a recently demolished vacant middle school once sat. Concordia has even had it's eye on this location according to this article. Even the neighbors support the idea (per the article).

Now I'm scratching me head... A vacant ten acre space where the homes could be moved to at the cost of $5,720,000 (not to mention the cost of land) or Concordia University could leave the houses alone and take the vacant school grounds. I'm perplexed at the simplicity of the solution here...

It's a sad sign of the times.

I wonder if this Realtor feels the watchful eyes of the neighbors on him as I do when I go to appraise a foreclosed home.

Does anyone else feel the pain of the new experiences in their RE jobs these days? We (RE pros) all are often blamed for creating 'this mess' and now we are in the process of repossessing and reselling it...

When I first saw this report posted, I thought for sure I would watch a group of investors taking this tour. You know... people that wouldn't be living in the houses they were buying. But it looks as if many of the tourists plan to call these houses home.

Portland Oregon was rather late to grasp the idea of condos. It wasn't until the mid 1990s when some developers started reviving the old downtown warehouses into upscale condominiums that people started to eat up the idea of the urban life style. And then their popularity sky-rocketed. Around the clock eateries, gyms and shopping starting filling in on the ground floors and the old and young alike left their cars in the suburbs and moved to the city. The views, the convenience, the culture... it all fit. Downtown living was hip with a six zero price tag.

Today, sales are waning. According to our local MLS, 1,100 condominiums sold in West Portland over the past 12 months. There are currently 1,062 condominiums for sale in West Portland. With the inventory growing, owners are forced to drop their prices and some developers are opting turn their condo constructions into apartments to save themselves the agony of long market times and lower sales prices.

It's no wonder. Most of the West Side condos are not priced for the first time buyer crowd. This is a second, third or even retirement home option for many. And then there are the HOA fees which run on average of about $200 to $400 per month.

Portland is holding strong in an overall sagging nationwide market. But the reason for the decline in condo sales? In the past, when I would appraise a new condo unit in the downtown area I would constantly see the first phase of construction being snagged up by outside investors. Probably about two thirds of the proud new owners in a new condominium building would never see their property in person. Once the project was completed they would simply put a 'for sale' sign on their unit and make that magic profit. Investors have been by-passing the Portland market these days. There are more desperate markets out that have lower price tags and potentially higher profit margins.

So in strange way, I see the decline of condo sales in the Portland area a sign that our housing market is stronger than much of the nation.

With the fall of creative financing and option of home buying becoming less available to a larger piece of our demographic, some people are clinging to the idea of co-housing or shared living communities.

One such community is happing just down the street. The Daybreak Cohousing Community has ‘broken ground' on a new project. When I say broken, I mean dismantled a great set of ‘horse shoe apartments' circa 1943 (that were in decent condition and rather iconic to the neighborhood in my eyes) in preparation for their new fancy building.

Knowing my past experiences with roommates, I'm sure that this would never be my calling. But I am fascinated in the Daybreak community's plight. First off (and perhaps unfairly and incorrectly), I think of people that want to participate in commune-style living to be hippies... suns of the earth... tree huggers... And yet they've taken these perfectly fine buildings and re-purposed them into modern day condo-like hipster housing. (When I use the words ‘dismantle' and ‘re-purpose' I do mean that they are consciously re-using as much of the original structure as possible to build their ideal community).

What made the original apartments so charming was the huge maple tree that sat in the middle of the horse shoe. Other than severely trimming the tree back to make way for construction, they've thus far managed to save it. In fact, it might be bad karma to take the old tree to the ground now after they had their ground-breaking ceremony under the tree and adorned it with Tibetan prayer flags.

I would imagine that this project is created for both social and financial endeavors. To become fulfilled by creating a community within a community while sharing the costs.... And they might save quite a bit of money on this venture. There appear to be 16 families participating in the community and if they keep their building budget under $2,000,000 they stand to save $75,000 to $200,000 on a ‘similar' (a term loosely used under the circumstances) condo. Hey, this could be the new wave. Now reselling their space in the community when they decide to move on might be another story all together.

Oregon has a surprising new ballot measure coming up this November.... voters will be asked whether or not permits from the city should be necessary for projects at or less than $35,000 in cost. This includes electrical and plumbing (!!!).

I realize that this may sound hypocritical after writing a somewhat contradictory blog about my experience with a city inspector, but I can only imagine what sort of effect this bill may have if it passes. For instance, lenders might start requiring full home inspections prior to purchase for Oregon properties to ensure their investment is safe... Insurance companies might be able to deny a claim on your house because of lack proper permits. Some insurance companies might abandon Oregon properties all together raising the overall insurance rates for Oregon customers.

If I were a condo dweller, I would raise an eyebrow every time I heard a hammer. Ameture plumbing and wiring is too close for comfort when it lies within that same wall. As a homeowner, does this allow me to build a third story onto my house as long as it costs less than $35,000? How about a balcony deck made with re-purposed 2x4s? How many people would accidentally be installing their patios and decks over their neighbors property lines?

As an appraiser, I would likely be more apt to calling in professionals whenever I saw what looked to be the work of an under-qualified person/home owner. This could cost home owners valuable time and money when refinancing or purchasing their next home. Because just as a reminder to all, appraisers are hired to determine an opinion of value... inspectors are hired to know the bones of your homes.