The August Case-Shiller numbers are out and the news is good...for now. The housing market appears to be stabilizing in Portland and across metro areas in the US. This first picture is the raw C-S numbers for Portland, Seattle and the 20 city composite.
The next picture is the year over year change in home values for the same three indices.
The combination of low interest rates for mortgages and the new home buyer tax credit seems to be having a substantial impact, however with the tax credit potentially expiring (if it is not extended), high unemployment and a shadow inventory of foreclosed properties that will take a while to work through the market, I would not get too optimistic about the next year or so. I would expect these to take a dip in the winter and perhaps, finally, by the middle of 2010 we'll see sustained improvement.