Core Logic's Chief Economist Dr. Mark Flemming's "Welcome to the New Housing Normal" in the latest Market Pulse gives great explanatory structure to the market that seems to be emerging in the Portland Real Estate market. Many cities are now showing more acute signs of a faltering recovery. These trends eventually show up in Portland. Housing activity in July was noticeably softer than the preceding months; perhaps we're already seeing signs of the emerging "normal" market in Portland.
Fleming credits pent up supply and demand constraints for the recovery slow-down. There are three underlying conditions impacting the new normal supply of homes for sale:
- The shadow inventory that accumulated after the financial crisis has been sold off,