As per Wikipedia:
Milwaukie is a city in Clackamas County, Oregon, United States. A very small portion of the city extends into Multnomah County. The population was 20,490 at the 2000 census. The 2006 estimate is 20,835 residents. Founded in 1848 on the banks of the Willamette River, the city, known as the Dogwood City of the West, was incorporated in 1903 and is noted as the birthplace of the Bing cherry. The city is now a suburb of Portland and also adjoins the unincorporated areas of Clackamas and Oak Grove.

So What's Up Real Estate News Wise?
From January 1st, 2011 to June 14th, 2011 there have been 227 closed sales of stick-built residential homes. This statistic includes condos and attached homes. The chart below is a breakdown of these sales.



Distressed Market Share Is Significant
84 of the above sales were REOs or what are known as Bank Owned Foreclosure Homes. These homes were previously foreclosed on by the lending institutions and then resold to the general public through Real Estate Brokers and the MLS system.

23 of the above sales were Short Sales. This is where the lender has agreed to allow the owner of the home to sell for less than what is owed. The process can be long and drawn out and only a small fraction of attempted Short Sales actually succeed.

Based on the above data, there were a total of 107 distressed sales out of 227 total sales for the period. This translates to 47.14% of the market.

Current Trend
There are 321 current active listings for sale in the RMLS system. Of those, 18 are Bank Owned Foreclosure Homes. Another 77 are currently listed as Short Sales.

There are currently 101 pending sales in the RMLS system. Of those, 28 are Bank Owned Foreclosure Homes. Another 12 pending sales are listed as Short Sales.

My Forecast Of The Real Estate Market For The Next 2 Years
I think we are in for more of the same. Market values will continue to trend downward. It is simply a matter of supply & demand. There are far more home sellers than buyers in the market. Inventory levels will continue to be high with distressed properties capturing a large portion of the actual closed sales. There are millions of home owners out there who owe more than their homes are worth. Many of them are behind on their home loan payments. I have read reports that some have not made a payment in excess of 3 or 4 years. All of these homes will eventually get foreclosed on. This will put further downward pressure on the market value of homes.

Silver Lining
Is there a silver lining in this situation? In my opinion, yes. Homes are becoming more affordable to the average buyer / first time home buyer. Investment / rental units are actually making sense now, cash flow wise. All of the displaced home owners, who have been foreclosed on have to live somewhere. So they are renting, which is creating an increased demand for rental units. Once again it is supply and demand driving this market as well. An astute investor, can capitalize on this trend by purchasing homes as rental units, creating a handsome return on their investment.

Let's make lemonade out of lemons.