Saturday, March 31, 2012

Home sales in the Portland Area continues to show improvement.  Home sales increased 18% this past month, 15% over the past 6 months, and the number of homes for sale has decreased by almost 30%!  This is having a positive effect on values.  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 2011 increased 4% from the year earlier, and surpassed 2008 and 2009 with a similar margin.  This positive trend has continued into 2012 with an increase in sale activity by almost 18% this past month.  This is great news for home values.  The average cost of a home in Portland is currently $251,300 – an annual increase of almost 2%, and great news considering values had steadily decreased since 2007.  Lawrence Yun, NAR's chief economist, said in a statement that "the trend in contract activity implies we are on track for a more meaningful sales gain this year."  “Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery," Yun added.

There are currently 8,300 Portland Area homes up for Sale.  This is a substantial decrease from a peak of over 18,200 homes for sale in the summer of 2008.  Portland Home Values will likely increase if this inventory reduces further in 2012.  Homes that are located well and priced to attract a buyer are selling quickly and often with multiple offers.

February National Existing Home Sales in Graphs
On March 21, 2012, in Economist Commentaries, by Lawrence Yun, Chief Economist

The spikes in sales in late-2009 and mid-2010 (shown below) were due to the home buyer tax credit deadlines.  Outside of these spike periods, the past two months of sales are at the highest levels in 5 years.

Inventory has been steadily falling.  The charts show the raw number of visible inventory of homes for sale.  There are seasonal patterns, with more listings in spring and summer compared to winter.

The median home price showed a slight increase in February from one year ago.  The increase is more due to the mix of homes issue where the upper-end market, which had been very sluggish in recent past, is beginning to move.  The market is still dominated by sales in the lower price points.

Homes are affordable and there are great 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 under 4%!  

Do you know someone looking to buy or sell a home?  

Please have them call me at 503-784-7626