Friday, November 18, 2011

Home sales in the Portland Area grew almost 14% in October from last year. This has been a trend for the summer and is combined with a substantial decrease in the number of homes placed up for sale. Read my summary below to see how this may benefit you.

Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Service.

In Summary:

The number of Portland Area homes Sold in October increased 14% as compared to 2010. This combined with a substantial drop in the inventory of homes For Sale is great news for Portland Home Values. There are currently 10,012 homes up for Sale – a substantial decrease from a peak of over 18,200 homes in the summer of 2008. Back then, it was a difficult time for home sellers to compete with 18,000 homes for sale, and home buyers were overwhelmed and uncertain with pricing about a third higher than it is today. Portland Home Values will likely increase if this inventory reduces further in 2011-2012.

The average cost of a home in Portland is currently $263,700 – up almost 6% from the start of the year. Homes that are located well and priced to attract a buyer are selling quickly with multiple offers.

Housing Investment for the Long Haul

by Lawrence Yun, Chief Economist National Realtors Association

Home prices took a rough ride in the past decade. The past 10 years were an anomaly fueled by easy credit availability. Those days are over – and for the better. Most Americans believe in hard work (and not easy credit) before being able to enjoy the fruits of their labor.

The chart below shows the long historical trend in median prices of a single-family home in the U.S. A typical buyer purchased a $23,000 home back in 1970. The monthly mortgage payment on that home, assuming a 5 percent down payment, would have been $153 per month for 30 years. So a homeowner who did not do a cash-out refinance would have paid off their mortgage by the year 2000. So imagine no further rent or mortgage payments. Currently in America there about 25 million homeowners who own their homes free-and-clear.

On top of no mortgage payments, the median price of a home in 2000 was $143,000. This is something a person could bequeath to their loved ones when the time arrives or even use for charity donations: the fruits of one’s lifetime labor being put to a good use.

Home prices took a rough ride in the past decade, it’s true. But let’s not forget about the very basic and long-term benefits of homeownership for those who are willing to stay well within their financial capacity.

Homes are affordable and there are fantastic investor opportunities. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, Mortgage Interest Rates are BELOW 4%!

Do you know someone looking to buy or sell a home? Please have them call me at 503-784-7626.