Author: Dianne Gregoire

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Price Per Square Foot

Price per square foot is a handy tool when trying to calculate value for a house. It is commonly used by Realtors, home buyers and sellers, and Appraisers. It can also be a bit misleading. So I thought it was time to take a good hard look at it.

Two weeks ago I got an e-mail from a reader wanting to know if Lake Oswego had an average price per square foot that houses were selling for. Trying to be helpful, I went back into the previous week’s sold properties (3/7-3/13) and found that they had sold for an average of $133 per square foot. However, this lumped all of the solds together (condos and detached houses), and was only a 1 week snap shot. Wanting to delve deeper, I re-did this exercise and broke it up into condos, detached houses, and waterfront. Again, these are averages.

This snap shot reflects sales in the last 30 days:
Condos
18 condos have sold in the last 30 days. The least expensive per square foot was $68. The most expensive was $389. The average sold price per square foot was $158.

Single Family Homes
33 single family homes have sold in the last 30 days. The least expensive per square foot was $92. The most expensive was $279. The average was $174 per square foot.

The average/average (in other words both condos and detached houses) was $167 per square foot.

Now, some clarification. These are some widely swinging values. What separates the low values from the high values are variables such as age, condition, and location. A house that is brand new is generally worth more than a house that is 50 years old. A house in a high-demand location like First Addition is going to be worth more than a house on a busy street in Lake Grove. These averages do not take into consideration these variables.

When you value a house using price per square foot, you really need to be comparing that property to others that are as similar to it as possible. But averages are interesting. It kind of creates a lens through which to look. If the average for houses in LO is $174 per square foot, and you are looking at a house that is priced either greater or less, why is there the difference? Is it worth more because it’s a fantastic house? Are you getting a chance to get a screaming great deal?

Waterfront
I purposely left out waterfront properties from these averages because I think that they have their own unique valuation. We happen to have both a lake and a river in Lake Oswego, so waterfront is an important part of our market. To look at waterfront averages, I went back 6 months in order to have enough properties in the study to make it useful. I found a low per square foot of $73 (OK, that is just amazing!) and a high of $571. The average sold price per square foot was $287.

Then there is the issue of measuring
With all of this emphasis on value per square foot, one of the realities is that measuring a house is not an exact science. Two highly qualified professionals can measure the same house and arrive at different numbers. Do you count a staircase twice? After all it exists on more than one level. Yet, it really is only floor space that is used as a single level. Then there are tricky floorplans with cut outs and overhangs that can not be measured from the ground. To measure, you end up doing estimates based upon other measurements of either the interior or surrounding walls that can be measured. I am currently involved in a sale that is new construction. The builder, based upon architectural plans, has a measurement of 3650 square feet. The appraiser who was at the house last week found a measurement of 3823 square feet. Just using the average in LO as I calculated above, that’s an additional value of $30,000.

Ultimately my perspective is that looking at price per square foot can be helpful, but it needs to be taken with some understanding that it is not an exact science. As a buyer or a seller, you also need to factor in the obvious things like age, condition, and location, but also how much do you love the house. Is it worth to you what is being offered? Because ultimately a house is worth what a seller is willing to sell it for and what a buyer is willing to pay for it. These are human decisions and not scientific ones.

Thanks for reading. Send us your questions and allow Linda and I to address them here. We would so much rather be writing about things that are of interest to you. Again, thanks for reading.
Dianne

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Market Activity Report: 3/21-3/27

New listings were way down last week with just 12: probably due to Spring Break. Pending sales were strong at 16, and closed sales were also solid at 14. It’s nice to see more pendings and solds than new listings. Must be the sweet smell of spring.

See below for further details according to RMLS:

NEWLY LISTED (Mar 21-27, 2011)

Address Type Price Sq FT BR Baths
45 Eagle Crest Dr #520 Condo $135,000 768 1 1
5322 Charleton Ct Detached $274,900 1633 3 2.5
7 Britten Ct Attached $280,000 2046 4 2
5978 Fernbrook Circle Detached $309,000 1612 3 2.5
1820 Kilkenny Dr Detached $379,000 3040 4 3
2360 Greentree Rd Detached $429,000 2207 3 2.5
17360 Hunter Ct Detached $478,500 3322 4 2.5
1454 Glenmorrie Dr Detached $505,000 3372 3 2.5
557 2nd St Condo $625,000 1833 2 2.5
1700 Village Park Ln Detached $769,900 4945 4 4
12439 SW 22nd Ave Detached $849,900 4118 4 3.5
340 Ridgeway Rd Detached $1,495,000 3796 4 3

PENDING SALES (Mar 21-27, 2011)

Address Type Price Sq Ft BR Baths CDOM
79 Galen St Condo $69,900 995 2 2 208
668 McVey Ave #82 Condo $109,250 992 2 1.5 46
54 Galen St Condo $119,485 995 2 2 346
5064 Foothills Dr H Condo $209,900 1252 3 2 14
10 Polonius St Detached $264,900 2028 4 3 3
1571 Woodland Terr. Detached $299,900 2400 3 2 106
44 Da Vinci St Detached $339,900 2005 4 2 14
151 Del Prado St Detached $399,000 2447 4 2.5 191
18929 Indian Springs Rd Detached $410,000 3380 4 3 51
6 Churchill Downs Detached $439,950 2922 5 3.5 320
920 Evergreen Rd Detached $475,000 1622 2 2 413
17645 Oak Meadow Ln Detached $510,000 3510 4 2.5 392
5 Cellini Ct Detached $649,900 4895 5 3.5 300
691 Carrera Ln Detached $699,000 3704 5 3.5 255
17833 Marylcreek Dr Detached $749,000 5495 5 4.5 45
18260 River Edge Ct Detached $789,000 4711 4 3.5 160

SOLD (Mar 21-27, 2011)

Address Orig. Price Sold Price Type Sq Ft CDOM
4631 Lakeview Blvd $93,000 $51,000 Condo 753 177
49 Oswego Summit $75,000 $67,500 Condo 720 127
18021 Tualata Ave Auction $176,400 Detached 1410 338
575 Hemlock St $289,000 $285,000 Detached 1175 289
5204 Rosewood St $344,900 $337,000 Detached 1683 11
30 Wilbur St $412,900 $355,000 Detached 2664 79
326 Lake Bay Ct $439,500 $390,000 Detached 1400 159
13595 Knaus Rd $489,000 $469,000 Detached 3339 226
547 2nd St #202 $559,000 $535,000 Condo 1529 388
2607 Palisades Crest Dr $760,000 $750,000 Detached 5650 244
1309 Horseshoe Curve $849,000 $800,000 Detached 3087 58
585 2nd St #404 $999,000 $835,000 Detached 2147 396
744 9th St $1,075,000 $950,000 Detached 4255 465
13795 Cameo Ct $1,400,000 $1,100,000 Detached 7190 706

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings

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Open Houses for March 27, 2011

Lake Oswego is going to have 26 open houses tomorrow. Enjoy!

Address Type Price BR Baths Open
194 Ridgeway Rd 11B Townhouse $192,500 2 1 12 to 3
5055 Foothills Dr C Attached $239,000 2 2 1 to 4
151 Kingsgate Rd Detached $250,000 3 2 1 to 4
19420 Marlin Ave Detached $264,795 3 1 12:30 to 2
5322 Charleton Ct Detached $274,900 3 2.5 1:30 to 3:30
6157 Shakespeare Detached $289,900 3 1.5 1 to 4
14251 Camden Ln Detached $349,000 3 2.5 1 to 4
1820 Kilkenny Dr Detached $379,000 4 3 2 to 4
1416 Cherry Crest Dr Detached $419,900 4 3 1 to 4
775 Boca Ratan Dr Detached $424,500 4 3.5 11:30 to 1:30
2360 Greentree Rd Detached $429,000 3 2.5 2 to 5
4750 Auburn Ln Townhouse $439,000 4 3.5 1 to 4
17791 Hill Way Detached $439,698 4 2.5 1 to 3
19443 Kokanee Ct Detached $474,900 4 2.5 12 to 4
19319 SW Dogwood Ct Detached $499,900 4 2.5 10 to 5
3718 Rivers Edge Dr Detached $529,900 3 2.5 1 to 5
19285 Megly Ct Detached $539,900 5 3 10 to 5
19200 Megly Ct Detached $569,900 6 3 10 to 5
13554 Rogers Rd Detached $609,000 4 2.5 11 to 2
17997 Braeden Ct Detached $644,810 3 2.5 2 to 3:30
1930 Indian Trail Detached $669,000 3 3 2 to 4
5321 Amberwood Ct Detached $669,900 4 3 1 to 3
5320 Southwood Dr Detached $728,000 4 3 1 to 3
721 7th St Detached $929,000 4 3.5 12 to 2
18209 Siena Dr Detached $994,000 5 3.5 1 to 3
18222 Siena Dr Detached $1,189,000 4 3.5 1 to 3
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Featured Neighborhood: Birdshill

Lake Oswego has 22 neighborhood associations. This week I want to tell you about Birdshill. Birdshill is one of the smaller associations and is more loosely organized. It consists of two distinct parts. To find Birdshill, you’ll want to be West of the Willamette River, North of Foothills Park, East of Terwilliger, and South of Iron Mountain Blvd./Edgecliff Rd.

Half of Birdshill is the very South end of Dunthorpe. Dunthorpe is a high-end luxury neighborhood that has City of Portland addresses but is actually in un-incorporated Multnomah County. Well, except for the part that is City of Lake Oswego and in Clackamas County. The feel of the neighorhood is large lots situated in a lush, wooded setting. These homes feel like estates. Most of the homes are older, although the occasional newer home does exist.

The other half of Birdshill is along the Willamette River. It’s tucked away and a hair-pin turn off of State Street to find. I really don’t think many people who live in Lake Oswego have ever been down in the area. It is a little gem: particularly if you want access to the river.

Houses along the river often feature deep-water docks and people who have these properties not only enjoy their boats, but a number of them have been known to also have sea planes. You do realize that with the right boat you could leave your back yard in Lake Oswego and travel the pacific to your home in Hawaii? Yes, this location would allow you to do that.

Besides being very close to Foothills Park, the neighborhood is adjacent to Tryon Creek State Park, as well as having a small park on the Willamette River itself.

Because Birdshill is a small neighborhood, at any given time there are only a few houses for sale. Today, there are currently just four. The least expensive is a 1956 daylight ranch with 4 bedrooms, 3 baths, and sitting on .98 of an acre. It’s priced at $525,000. The most expensive is a grand 1932 estate with 4 bedrooms, 3 full baths and 2 half baths, sitting on .86 of an acre that is priced at $2,125,000.

Please let us know if you would like more information about living in Birdshill. As always, Linda and I are here to help.

Dianne

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Market Activity for March 7-13, 2011

Last Week Lake Oswego saw 17 New properties enter the market, 18 move to Pending status, and 8 Closed sales. This is virtually identical to last week which had 17 new, 17 pending, and 8 closed.

I also want to point out the attached homes on Oakridge and Trillium Woods. That’s the property at Oakridge and Quarry that has been sitting waiting for development for so many years. Three of the new listing are in this development and one pending sale, which you will see sold with no market exposure. It was likely a pre-sale. I am glad to see that land getting not only developed, but apparently offering a product with appeal.

See below for further details according to RMLS:

NEWLY LISTED (March 7-13, 2011)

Address Type Price Sq FT BR Baths
5064 Foothills Dr H Condo $209,900 1252 3 2
4263 Woodside Circle Attached $244,900 2026 3 2
19420 Marlin Ave Detached $264,800 1166 3 1
16964 Maple Circle Detached $295,900 744 2 1
44 Da Vinci St Detached $339,900 2005 4 2
1053 Hallinan St Detached $349,900 1944 3 2.5
4697 Oakridge Rd LT5 Attached $362,920 1738 3 2.5
4699 Oakridge Rd LT6 Attached $376,380 1738 3 2.5
5365 Lakeview Blvd Detached $419,000 1754 4 2.5
4681 Trillium Woods LT8 Attached $433,200 2135 3 2.5
4 Icarus Loop Detached $449,900 2743 4 2.5
4398 Glacier Lily St Detached $450,000 2936 4 2.5
4927 Hastings Dr Detached $532,000 2418 4 2.5
14867 Twin Fir Ct Detached $559,000 3641 7 3.5
17614 Blue Heron Detached $818,950 3150 4 3
17151 Wall St Detached $865,000 4141 7 4
1 Dover Way Detached $899,000 3731 4 3

PENDING SALES (March 7-13, 2011)

Address Type Price Sq Ft BR Baths CDOM
33 Crestfield Ct #33 Condo $44,900 689 1 1 418
5530 Bonita Rd Detached $239,000 1200 3 1.5 64
5031 Tualata Ln Detached $249,900 1492 3 2 300
19211 Marlin Ct Detached $258,500 2091 2 3 9
4382 Woodside Circle Attached $275,000 1250 2 2 37
837 Oak St Detached $295,000 2006 3 2 3
30 Wilbur St Attached $349,900 2664 2 2.5 79
535 B Ave Attached $399,000 1691 2 2.5 592
1677 Laurel St Detached $415,000 2445 4 3.5 117
17491 Blue Heron Dr Detached $419,900 2429 4 2 404
4683 Trillium Woods LT7 Attached $436,150 2135 3 2.5 0
12751 Sierra Vista Dr Detached $469,900 2097 3 2 31
5434 Rosalia Way Detached $497,900 2600 4 2.5 245
3885 Upper Dr Detached $529,000 3122 4 2.5 342
19019 Bryant Rd Detached $625,000 3326 4 3.5 130
553 2nd St #208 Condo $635,000 1816 2 2.5 786
17301 Canal Circle Detached $749,000 1812 3 2.5 342
2990 Glen Eagles Rd Detached $795,000 3650 4 2.5 125

SOLD (March 7-13, 2011)

Address Orig. Price Sold Price Type Sq Ft CDOM
44 Eagle Crest Dr #9 $74,900 $74,000 Condo 908 5
12511 SW Boones Ferry Rd $204,900 $150,000 Detached 1625 187
186 Oswego Summit #186 $212,000 $192,500 Condo 1506 94
5827 Bonita Rd $399,900 $299,900 Detached 1771 245
18667 Pilkington Rd $399,900 $315,000 Detached 2512 241
942 Clara Ct $549,000 $349,000 Detached 3123 194
18212 Westview Dr $589,900 $550,000 Detached 3464 195
163 Iron Mountain Blvd $1,200,000 $900,000 Detached 4314 102

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings

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Open Houses for Sunday Feb 13th

There are 35 open houses planned in Lake Oswego for this Sunday. Lots to see! And I am also excited to say that the daffodils have started to bloom. Yeah spring!

Address Type Price BR Baths Open
1400 Bonniebrae Dr Attached $169,500 2 1 1 to 3
8 Condolea Dr Attached $259,900 2 2 1 to 3
446 5th St Attached $275,000 2 1.5 1 to 3
2061 Bonniebrae Dr Attached $275,000 3 2.5 1 to 3
19250 Maree Ct Detached $299,000 3 2.5 1 to 3
14251 Camden Ln Detached $349,000 3 2.5 1 to 3
1830 Cloverleaf Rd Detached $373,000 5 2 12 to 2
2 Bartok Pl Detached $375,000 4 2.5 1 to 4
5365 Lakeview Blvd Detached $419,000 4 2.5 1 to 3
1416 Cherry Crest Dr Detached $439,900 4 3 1 to 4
19487 SW Dogwood Ct Detached $469,900 4 3 10 to 4
19443 Kokanee Ct Detached $475,000 4 2.5 12 to 4
12 Scarborough Dr Detached $479,900 4 2.5 2 to 4
19319 SW Dogwood Ct Detached $499,900 4 2.5 10 to 4
5124 Rosewood St Detached $519,900 5 3.5 1 to 4
17973 Saint Clair Dr Detached $524,900 4 3 1 to 3
19263 Megly Ct Detached $544,900 5 3 10 to 4
17754 Treetop Ln Detached $550,000 5 3.5 12 to 3
14867 Twin Fir Ct Detached $559,000 7 3.5 1 to 3
1217 Tyndall Ct Detached $599,000 4 4 2 to 4
17997 Braeden Ct Detached $644,800 3 2.5 1 to 3
5 Cellini Ct Detached $649,900 5 3.5 1 to 3
5511 Fieldstone Ct Detached $658,950 4 2.5 1 to 3
5533 Fieldstone Ct Detached $668,950 4 2.5 1 to 3
15622 Fieldstone Dr Detached $698,950 3 2.5 1 to 3
6 Sherwood Ct Detached $699,950 4 3 1 to 3
17110 Lowenberg Terr. Detached $759,900 4 2.5 2 to 4
17288 Lowenberg Terr Detached $769,900 4 3.5 2 to 4
100 Garibaldi St Detached $899,000 5 3.5+.5 1 to 3
215 Chandler Pl Detached $995,000 3 2.5 1 to 4
17460 Wren Ct Detached $995,900 4 3.5 2 to 4
18209 Siena Dr Detached $1,058,000 5 3.5 1 to 3
18222 Siena Dr Detached $1,189,000 4 3.5 1 to 3
1626 Englewood Dr Detached $1,499,000 3 2.5+.5 1 to 3
2572 Glen Eagles Pl Detached $1,895,000 5 4.5+.5 1 to 3
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Featured Neighborhood: Uplands

Lake Oswego has 24 distinct neighborhoods, each with its own characteristics and features. Today I am going to focus on Uplands.

Uplands is centrally located and very close to Lake Oswego High School and Lake Oswego Junior High School. It is South of Country Club Rd, North of Iron Mt. Blvd., West of Lake Oswego Country Club, and East of Boones Ferry Rd.

I think its most distinguishing characteristic is that it is quiet and wooded. There really are no busy streets in this area with traffic consisting primarily of people who live in the area. There are two nature parks: Springbrook and the Iron Mt. Natural area. There is also a little park, probably the smallest in the city: Prestwick Park. Springbrook Park has a wonderful trail system that is enjoyed regularly by locals. It is 52 acres and full of Big Leaf Maples.

The housing is diverse. It is an established area with many homes dating from the 1950’s and 1960’s. The location and the large lots really appeal to buyers and over the years many of the small homes have been enlarged or torn down and had new homes built. This creates a mixture of old and new, large and small.

There are currently 11 homes for sale in the neighborhood. The least expensive is 2039 square feet, built in 1995 on a very small lot (unusual for the area). It has 3 bedrooms, 2.5 baths, a 2-car garage, and is priced at $339,000. The most expensive home for sale was built in 2009. It is on nearly half an acre and has 6490 square feet with 5 bedrooms, 4 full baths and 2 half baths. There is a 3-car garage and it is priced at $1,895,000.

Also located in Uplands is the City’s Indoor Tennis Center. With our cold and wet winters, this is a real feature. There are 4 indoor courts that can each be rented for $16 an hour. The center has a wide variety of competitive and social events that include a City Tennis League, USTA League, group mixers, Tiny Tot Tennis, and more.

This neighborhood, while it feels like it is isolated, is actually very close to pretty much any part of town you want to go to. From Uplands you are just minutes to both downtown Lake Oswego and to Lake Grove. It has quick access to Hwy 217 and I 5. It also is pretty close to the lake and many of the homes have boating easements.

So when looking for a home in Lake Oswego, be sure to consider the Uplands neighborhood. And please let Linda or I know if you would like more information.

Dianne

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Market Activity for Feb 21-27, 2011

Last Week Lake Oswego saw 11 New properties enter the market, 13 move to Pending status, and 6 Closed sales.

See below for further details according to RMLS:

NEWLY LISTED (Feb 21-27, 2011)

Address Type Price Sq FT BR Baths
47 Eagle Crest Dr #41 Condo $69,900 932 2 1
100 Leonard St #3 Condo $249,000 1364 2 2
3 Saint Helens Circle Detached $257,250 1472 2 2
6243 Dawn Ave Detached $294,000 1254 3 1.5
18220 Bickel Ct Detached $419,000 2600 4 2.5
2375 Dellwood Dr Detached $487,500 3317 4 3
1210 Wells St Detached $525,000 4494 6 3.5
2310 Stonehurst Ct Detached $559,000 3365 4 2.5
4036 Melissa Dr Detached $579,900 3204 4 3.5
4081 Pfeifer Ct Detached $709,000 4070 5 3.5
14100 Goodall Rd Detached $854,950 2513 4 2.5

PENDING SALES (Feb 21-27, 2011)

Address Type Price Sq Ft BR Baths CDOM
18021 Tualata Ave Detached Auction 1410 3 1 721
33 Crestfield Ct #33 Condo $49,500 689 1 1 404
668 McVey Ave #12 Condo $129,360 992 3 1.5 0
4 Touchstone #136 Condo $159,900 1351 3 2.5 822
6319 Washington Ct Detached $219,900 1274 3 1.5 98
575 Hemlock St Detached $289,000 1175 3 2 20
14418 Orchard Springs Rd Detached $358,900 1710 3 2.5 13
16909 Crestview Dr Detached $425,000 2553 4 3 414
13595 Knaus Rd Detached $489,000 3339 4 3 226
17560 Westview Dr Detached $519,000 2561 3 2.5 196
547 2nd St #202 Condo $535,000 1529 2 2 388
13991 Chelsea Dr Detached $544,500 3354 3 2.5 294
6435 McDuff Ct Detached $759,950 3206 4 3.5 23

SOLD (Feb 21-27, 2011)

Address Orig. Price Sold Price Type Sq Ft CDOM
243 Cervantes Circle $139,900 $95,500 Condo 1292 319
240 4th St $289,000 $258,000 Detached 1080 49
14138 Knaus Rd $275,000 $269,565 Detached 2001 106
1900 Greentree Rd $449,000 $315,000 Detached 3032 111
1579 Bay View Ln $639,000 $565,000 Detached 4865 33
610 Cabana Ln $895,000 $800,000 Detached 1729 171

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings

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Open Houses for Feb. 26, 2011

It’s going to be a great day tomorrow to go and see some open houses. RMLS is showing that 29 homes will be held open on February 26th. Enjoy.

Address Price BR Baths Open
5061 Foothills Dr G $180,000 2 2 1 to 3
5055 Foothills Dr C $239,000 2 2 1 to 4
53 Oriole Ln $269,000 3 2.5 1 to 3
12847 SW 61st Ave $272,000 3 2 1 to 4
4382 Woodside Circle $275,000 2 2 2 to 4
15245 Boones Way $289,900 3 2.5 1:30 to 3:30
18715 Boones Indian Creek Dr $353,800 3 2 1 to 3
1830 Cloverleaf Rd $373,000 5 2 1:30 to 3:30
18978 Indian Springs Circle $375,000 3 2 1 to 3
19 Grouse Terrace $419,900 3 2.5 1 to 4
775 Boca Ratan Dr $424,990 4 3.5 12:30 to 2:30
19443 Koknee Ct $475,000 4 2.5 12 to 4
12 Scarborough Dr $479,900 4 2.5 12 to 4
17790 Westview Dr $495,000 4 3 2 to 4
3899 Daniel Way $550,000 4 2.5 1 to 4
17981 Meadowlark Ln $558,377 3 2.5 11 to 4
9 Abelard St $599,000 5 3.5 1 to 4
1217 Tyndall Ct $599,000 4 4 2 to 4
1930 Indian Trail $669,000 3 3 2 to 4
17884 Kelok Rd $695,000 5 3.5 2 to 4
17896 Kelok Rd $695,000 6 5.5 2 to 4
4081 Pfeifer Ct $709,000 5 3.5 1 to 3
649 9th St $739,900 3 2.5 1 to 3
533 Weidman Ct $879,000 4 3.5 2 to 4
100 Garibaldi St $899,000 5 3.5+.5 1 to 3
18209 Siena Dr $1,058,000 5 3.5 1 to 3
18222 Siena Dr $1,189,000 4 3.5 1 to 3
1104 Forest Meadows Way $1,495,000 4 3.5 2 to 4
2572 Glen Eagles Pl $1,895,000 5 4.5+.5 1 to 3
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Affordable Homes

Lake Oswego has a reputation for being a community of expensive, luxury homes. And, yes, those homes are abundant in Lake Oswego. But for the buyer looking for an affordable home, Lake Oswego should still be a consideration.

The RMLS has recently begun tracking affordability. What they are comparing is the median income of the metro area (currently $71,200) to the median sales price of the metro area (currently $215,000) and determining the percentage of the median income to make the house payment on the median house. In other words, if a buyer making the median income goes to qualify for a loan, he or she makes enough money to qualify for a house payment that is currently 166% of what the house payment would be if they purchased a home at the current median price. An index of 166 means that current median income can easily support the current median home price. Before the market turned, that purchasing percentage was just 88% (June of 2007). It’s pretty clear that our housing market in 2007 was extremely unaffordable for the average buyer. Today, it is much more affordable.

Affordablity Affordability
Index Index
Dec. 2010 166 Mar. 2007 95
Sept. 2010 155 Dec. 2006 105
June. 2010 148 Sept. 2006 101
Mar. 2010 145 June. 2006 97
Dec. 2009 141 Mar. 2006 107
Sept. 2009 140 Dec. 2005 113
June. 2009 30 Sept. 2005 121
Mar. 2009 138 June. 2005 129
Dec. 2008 125 Mar. 2005 133
Sept. 2008 109 Dec. 2004 144
June. 2008 98 Sept. 2004 149
Mar. 2008 103 June. 2004 140
Dec. 2007 99 Mar. 2004 162
Sept. 2007 94 Dec. 2003 152
June. 2007 88 Sept. 2003 149

How does Lake Oswego fit into this, with it’s million dollar mansions? Actually, pretty well. There are currently 71 properties for sale in Lake Oswego that are priced at $215,000 or less. The bulk of those are condominiums, but it is very possible to buy into Lake Oswego within the median household pricing.

Since beginning this blog I have on ocassion compared affordable housing in Lake Oswego to affordable housing in Sellwood, a popular neighborhood in Southeast Portland where I once lived. I have done this because the average consumer assumes Southeast Portland is affordable, just as they assume that Lake Oswego is not. The cost threshold I have used is $350,000. So, by my definition affordable is a home that costs $350,000 or less. I have not included condominiums or attached homes. Today in Lake Oswego there are 74 houses for sale priced at $350,000 or less. Sellwood has just 20.

The least expensive detached house currently for sale in Lake Oswego is priced at $159,000. It is a bank foreclosure. With 3 bedrooms, 2 baths, and a single car garage, it has 1625 square feet.

The least expensive detached house currently for sale in Sellwood is priced at $145,000. It is offered as a short sale. It has 2 bedrooms, 1 bathroom, no garage. It has 1078 square feet, 340 of which are in an unfinished basement.

Have a great week. If you’re in the local area, stay warm and enjoy the snow.
Dianne