Portland Oregon market is hot why no melt down coming

[Jay Hinrichs]

My wife who is also my listing broker on one of the subdivisions we are building here in town just handed me a report of the homes we sold in the last 2 weeks. all new builds sold 8 of them

why the market won't melt down like 08 3 sales are CASH.. and the rest is conventional 20% down or more.. NOT ONE FHA ...

Ergo people who pay cash don't walk from houses and people that put 20% or more down RARELY walk from houses... and here in PDX these homes at todays rent's would just about break even in a worse case scenario.. for the cash buyers they would NET about 5% to 6% return probably higher because of lack of turn over or Cap ex and maintenance on brand new home.. Strong fundamentals in my mind.

Go back to the dark ages when I was selling my homes in 2004 to 2007.. Rare was a cash sale ( can't actually remember one) and rare was the sale not FHA or 100% financed in some manner.

I like this new model and mind set of the Home buyer today.. lets put a little cash into the homes and start out on solid foundation.  I am seeing the same thing in our Charleston new builds and that as all the way on the other side of the world of course.. but same metrics some cash sales and almost all conventional.

[Roy N.]

@Jay Hinrichs

Good news indeed.  You must remember the day when "everyone" put down 20% ;-)   

Here in Canada, you are still seeing lots of high-ratio mortgages.  

I am curious to see the new mortgage arrears and default numbers for 2015 and 2016-Q1 ... historically mortgage arrears in this country are < 0.5% and defaults are even lower, but if one were to extrapolate by the number of mortgage sale notices in the paper this spring, that may be rising.