Economists are predicting a stronger economic condition for Oregon in 2011, but the oversupply of foreclosures and bankruptcy homes for sale will prevent the state from returning to pre-recession economic levels. The expected growth in the job market will herald an economic growth in the region in the next two years, economists have stated.
Portland repo houses and foreclosed homes in various areas of Oregon will continue to depress property values, but analysts believe that the projected growth in the labor market will somehow offset some of the negative impact of foreclosures. Economists stated that the 0.6% growth in jobs in the state during the 2010 fourth quarter is encouraging. Experts are predicting that the job market will grow by another 1.4% this year and another 2% by next year.
However, the huge number of Oregon repossessed homes will continue to hold back growth and will prevent the state from returning to pre-recession conditions at a quicker pace. Some areas of the state will experience improvements in the home building market this year, according to economists, with Lane County being a prime example.
According to them, bankruptcy homes for sale and foreclosed dwellings will continue to account for a large percentage of housing sales, but the new home market will be able to hold its own in 2011. A rise of more than 10% in housing starts is predicted for Lane County, with single family dwelling construction projected to improve by around 6.7% over the same period.
Forecasts of job growth will greatly benefit the housing market, analysts stated, as there would be more potential buyers of repo homes for sale and new dwellings. The optimistic outlook for the job market was largely based on increased hiring in the wood products industry and strong performance in the food processing and professional services sectors.
More than 450 jobs have been created in the construction sector of the state in the past few years, according to local economists. They expect more to be created this year, and they believe that once the labor market has stabilized, the problem of foreclosures and bankruptcy homes for sale will be considerably lessened.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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