Local housing analysts stated that part of the reason for the continuous decline in local residential prices is the huge supply of homes under Portland foreclosure listings. According to the S&P report, home prices in the Portland metropolitan market dipped by 1.8% in February 2011 compared with January 2011. Prices in the metro have reportedly dipped to the level seen during the fall season of 2004.

Analysts also stated that, aside from the high level of properties under Oregon foreclosure listings, prices are also showing no sign of improvement because the unemployment level, not just in Portland but in the rest of the country, is still high. They also cited tight lending rules as part of the reason since they restrict potential buyers from closing purchase transactions. With foreclosures expected to rise further in the coming months, analysts predict that prices will remain low and will continue to be so for the rest of 2011.

The current status of the nation's housing market though, presents a lot of opportunities to people involved in bank and tax lien foreclosure investing. These investors can pick distressed properties from the market at bargain prices and sell them for a hefty profit. Most U.S. metro areas currently offer great opportunities to real estate investors, particularly those who have the means to pay in cash.

Investors who buy foreclosed properties will find that residential property deals have never been better than right now. In the S&P report, cities like Chicago, Portland, Miami, Minneapolis, San Francisco and Seattle had the steepest drops in housing prices between January and February, which make homes in these areas very affordable. Among the 20 cities tracked by the report, only Detroit recorded a month-over-month increase in housing prices in February. Statistics for all 20 cities showed that prices dipped in 19 out of the 20 locations covered by the report during February.

In Portland, prices declined in February of this year by 7% compared with the same 2010 month. According to housing market experts, the current condition of housing benefits real estate investors, homebuyers and people involved in tax lien foreclosure investing. They predict that the market will remain much the same for the rest of 2011.

1. Low capital investment. You do not need a lot of capital to invest in tax liens. Unlike other real estate investments, you can get a tax lien for less than $1,000.
2. Consistent return. With tax liens, you do not have to worry about the house market or stocks fluctuations. Your interest rate is not affected by market fluctuations hence you are assured you will get a high return on your investment.
3. No liability. Investing in tax lien certificates does not require you to have property insurance. Purchasing the certificate does not give you any liabilities as you are not purchasing the property.
4. Higher interests rates. Investing in tax lien certificates guarantees you higher rate than is offered on a normal savings account at a financial institution or a Central Depository.
5. No brokerage fees. To purchase a tax lien certificate, you do not need a broker. Of course you will have to pay, for instance when you are recording at the lien at the county offices, but this will be refunded when the lien redeems.
6. No taxes on your investment. Investing through a self-directed IRA will exclude you from paying taxes. With a self directed IRA, you can enjoy your profits in full, i.e. untaxed.
7. First-priority service. Tax lien certificates are usually redeemed first before other types of liens. Therefore, if a lien is not redeemed, it will go into foreclosure and you will still be the first to get paid.

With the economy in a go slow, you can find alternative ways to invest your money and that will give you good returns. A tax lien foreclosures certificate is a good investment because no matter what the interest rates are, you will still get the same interest rate that was offered at the tax lien certificate sale.