Portland, Oregon Real Estate Market Forces Buyers to Get Creative

>it," said Kutz, a former University of Portland
Homes with three bedrooms or less arebaseball pitcher who had played for the Great
considerably less expensive than a home withLakes Loons, a Class A affiliate of the Los
three or four bedrooms. This is common sense.Angeles Dodgers. "We originally thought about
But the clever part is when a home has existingbuying something larger -- three bedrooms, two
space that could in the future be converted intobaths. We had some savings, but with the market
another bedroom or bathroom. The real estatedoing what it's doing and the money we had, we
market in Portland, OR is forcing potential buyerswere forced to look at smaller homes."
to think creatively.Their can do attitude wound up working in their
Many neighborhoods—especially in some offavor. They found a two-bedroom home with a
Portland’s more desirable locations:space that could be used for anther bedroom in
Alameda, Mount Taber, Hawthorne, Rose Citythe future.
Park and Multnomah—remain costly and coveted.Eventually, M Realty broker Alicia Selliken found
Buyers who are ready to purchase a home butthem a prospect: a two-bedroom, 1910-vintage
can’t afford the high prices of these"Sears bungalow," assembled from mail-order
neighborhoods are looking to smaller homes asparts, on Northeast 66th Avenue. Kutz loved the
alternatives.Rose City Park neighborhood, the unique
Such was the case when a young couple fromcharacter of the home and the fact that it had an
Oregon searched for their first home. They hadunfinished basement. Eventually, the couple
been renting for years, had saved money, andoffered $213,000: $40,000 under its appraised
knew where they wanted to live. But theyprice. The offer was accepted, and they've
couldn’t afford the down payment on aalready finalized plans to add a bedroom,
home that had more than two bedrooms. Thebathroom and laundry room to the basement.
Oregonian ran an interesting feature article aboutIt seems this is becoming a trend. Three
the couple. bedroom homes are more expensive and there
As recently as last summer, former pro baseballare more of them on the market. Six times as
player Given Kutz and his wife, Katie, a nurse,many three bedrooms were recently listed for
weren't in the market to buy a house. Kutz wassale on the RMLS system in the early part of
transitioning to a law enforcement career, while2008. The homes tend to stay on the market
his wife was preparing to graduate from nursinglonger, too. Two-bedroom homes spent an
school.average of 54 days on the market, while three
"We had talked about an investment, a house webedroom homes stayed on for 71 days.
knew would appreciate if we put a little work into