I am seeing some great properties for sale in close in neighborhoods in POrtland Oregon. These homes are compact, have hardwood floors, dry basements and sunny yards.  The Portland market is kind of active right now, and I expect that to be the case through the second quarter, but after that I predict a flat market for the next 18 to 24 months.

Access to affordable loans and low down payments plus underwriting constraints will dampen the market here, especially the condo market. None the less, you have to live some where, and if you shop carefully, you should be able to find excellent value in close in neighborhoods.