Warreton Oregon Real Estate Market Activity: The Decade That Was

Like most places around the United States, Warrenton & Hammond Oregon saw a huge real estate bubble that began in approximately 2002 and peaked in late 2005. During this period demand was very high all over Clatsop County but I think Warrenton became an alternative to those that were priced out of the surrounding markets of Astoria and Gearhart. Taxes in Warrenton are much lower than Astoria, slightly lower than Gearhart and comparable with the rural areas that surround Astoria- But those rural areas where in high demand during that time and the prices increased accordingly. A first time buyer could buy a comparable home in Warrenton for 10-20% less than Astoria, pay less in property taxes, have good schools and lots of retail shopping nearby. Warrenton was and still is a great community to live in, and your dollar goes a little further there.

The demand for affordable homes pushed up the number of units sold each year substantially for a few years as shown in the chart below (data pulled from CMLS, deemed reliable but not guaranteed accurate). Prices also increased but actually lagged demand a little, and I think the pricing increase is slightly distorted by new construction that didn’t become available until 2007. Prior to 2007 there wasn’t much available in Warrenton for new homes, but all at the same time lots became available in Juniper Ridge and Pacific Ridge Estates and new homes were built for sale in The Orchard and Forest Rim developments- just as the Warrenton real estate market peaked.

I think the most interesting aspect the difference in timing between the peaks of units sold compared to median sales prices. The number of units sold annually exploded between 2002-2005 and almost doubled in fact. Yet the median sales price increased at a slower rate, peaked later and has fallen off much less.