Portland: Owning vs Renting-Price is so different!

[citymountains]

Originally Posted by JinLA

We may be relocating to Portland from CA and I'm not sure if we should sell our house NOW, or rent it out first down here until we decide if we are going to stay in Portland. If we listed that house right now, we could possibly get about $100k out of the house, but who knows what kind of correction is due down the line. 2 years ago, a sale would have increased that number to $160k!!!! It's dropped that much!

Any views would be welcomed! What would you do?

JinLA, I agree with supernova that you've got too many ifs/maybes in your questions in order to make the right decision here - but your concern on your equity dropping even more is extremely valid I believe. You ask "what would you do?": personally, I'd stay in Portland 1-2 weeks 1-2x and see if I want to move here. If so, I'd make the commitment to live in Portland. I'd keep the house in CA as an emergency backup if I felt the market is solid. I'd also look at the history of appreciation/depreciation in the specific area I'm selling. Because I feel the market is extremely unstable and downwards, I'd sell - I don't want to hold on to the house in any way. I'd rent in Portland for 6 months if I can't afford to buy - otherwise I'd buy in order to ease the transition.
I don't want to be an alarmist, but LA dropped a LOT in the early 90's (google it), and it seems we're at a historic time with housing prices/appreciation vs. affordability/sustainability. You really need to educate yourself with some understanding and knowledge here if you're concerned about your equity. There is plenty you can find by googling (housing bubble, record high depreciation LA) on the pros/cons of selling/buying now, and from there you can make a more educated decision on what's best for you. Perhaps what's best for you isn't being concerned about the equity, but having a house to go back to in case you don't like Portland. It unfortunately seems like an either/or situation. Good luck!

[oldtintype]

Isn't the housing market in Portland stronger than in CA right now?

[JinLA]

I'd think it is definitely stronger in Portland. Things are SITTING on the market in mid-income neighborhoods, and that is because these homes are asking $500,000 for a 2/2 (1200sf) 1950's home -- and that's in the San Fernando Valley - 45 minutes from downtown LA!!!!

[oldtintype]

Maybe you'd make more money investing in Portland right now then.

[syoung01]

For all of you real estate wonks out there, wondered how home prices compare between Portland and Vancouver across the river?