Oregon Mortgage News: The Grass Really Is Greener on One Side of the Fence

By Richard Barrington
Local Lender Columnist
Aug 22, 2007
Oregon's housing prices experienced a double-digit percentage increase for the year ending March 31, 2007. Whether or not this is good news or bad news depends which side of the property fence you are on.

For people about to purchase a home, this news might mean bracing themselves for a higher monthly mortgage payment than they'd anticipated. However, for existing homeowners, the increase means a boost in home equity and the increased financial clout that goes along with it.

Oregon Home Price Increase Makes the Top Ten

According to the House Price Index from the Office of Federal Housing Enterprise Oversight, Oregon home prices increased 10.77% for the year ending March 31, 2007. This increase ranked 7th on the national list.

The House Price Index is a particularly broad measure of housing prices, because it takes into account not only transactions, but also appraisals associated with mortgage refinancing.

Good News for Home Equity Borrowers

Is the strength of the Oregon housing market good news or bad news? Well, that depends on whether you are a prospective home buyer, or already a home owner.

If you are looking to buy a home, you might find the purchase a little more expensive than you'd expected. You'll have to reassess how much house you can afford, depending on what the increase does to your projected mortgage payments. One option may be to lengthen the term of mortgage you were considering, if possible.

On the other hand, the grass is certainly greener on the property-owner's side of the fence -- money green, that is. The increase in home prices is an automatic boost to your home equity. This bodes well for resale values and for the home equity borrowing available to you, and in any case represents an increase in your net worth.

Source
Office of Federal Housing Enterprise Oversight

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.