To read the local newspapers, you would think that our real estate market is in the tank.  No one is buying.  Nobody can sell their house.  What a mess!  How can anybody make money in a real estate market like this?

Let’s look at this mess for a minute.  The Portland (and Seattle) markets are the least affected of all major West coast cities by the “crash” in the real estate market.  House prices are holding pretty much steady with a slight decline in some areas and a slight increase in others. 

I was in downtown Portland early one Sunday morning in late November and had a hard time navigating around all the street blockages due to the “lifts”.  Lifts are what  commercial construction people call lifting mechanical equipment to the top of buildings that are under construction or extensive renovation.  Gigantic cranes blocked the streets.  Really big equipment that, for the most part, looked like HVAC (heating, ventilation, and cooling) units were being hoisted to unbelievable heights.

My immediate thought was that I had no idea this much commercial construction was taking place. That is the sign of a VERY healthy economy!  A healthy economy means the creation of new jobs and the creation of new jobs means the creation of new home buyers!  I love it!

But what about all the doom and gloom I’m reading about in the papers?  First of all, the City of Roses is a huge exception to the rule…the residential real estate market is down a little but still flourishing. There are families moving into our fine city literally by the thousands.

Second is that the media would have you believe that all purchases of residential real estate are primarily a financial decision.  This is simply not true.  Most purchases of residential real estate are due to the very unusual need for a family to have a roof over their heads.  What a revelation.  Right now mortgage money is cheap and readily available to those with reasonably good credit and a job.  Many families would rather own that roof over their heads and will save money for a down payment and buy a house. 

But even if I concede that, for many, buying a house really is an investment first, it is STILL a good market.  My simplified investment strategy is buy low, sell high.  This is not rocket science.  For some reason that really puzzles me, many people want to invest in real estate when the market and prices are at their highest and then panic sell and complain when prices are low. 

Now is the time to buy.  Oh, you want to wait until prices are at the very bottom.  I see.  The problem with that theory is you probably won’t realize there was a very bottom until prices have already begun their climb up again.  For the average investor or even homeowner, real estate is a long term investment and with the exception of the past couple of boom years, has never been a vehicle for quick profits. 

Remember, the house you don’t buy today will never go up in value for you.  The house you buy today and sell down the road in a few years will almost certainly be a good investment for you and your family.

As always, these are just my opinions.  Sometimes I am right!

Gary Taylor, CRB, GRI is the principal broker for the Sunset Corridor office of RE/MAX equity group, inc.  He currently serves on the Board of Directors and is Vice Chairperson of the Portland Regional Multiple Listing Service. He was awarded the PMAR Realtor of the Year for 2007, and the Million Dollar Club’s “Managing Broker of the Year” for 2006.  He was also a Notary Public in 1974.