Portland's Real Estate Market, Calling All Sellers!

Couresy: RMLS Market Action

Prior Month's Highlights - What does January have in store?

The Portland real estate market ended a remarkable year with mixed results in December. Closed sales at 1,760 were higher than the previous December’s 1,612 by 9.2%, while pending sales were 4.1% under the 1,443 accepted offers in the same month of the prior year. New listings dried up, with only 1,286 entered, 24.4% under the 1,700 published in December 2011. The active inventory dropped to a new low of 6,352 homes on the market, resulting in the lowest inventory in months this year at 3.6. Both the median and average sale prices showed double digit improvement, with the median rising 14.5% December to December, and the average rising 11.3%.


Summary of 2012

There were 32,300 new listings, 24,010 accepted offers, and 23,438 closed sales in 2012. Compared to the same period last year, new listings are down by 5.2% from the 2011 listing count of 34,084. Pending sales are up 16.2% from 20,670 last year. Closed sales are up 19.1% from 19,682. Prices are higher. The average sale price in 2012 was $275,000, 4.4% higher than the average price of $263,300 in 2011, while the 2012 median sale price of $235,000 was 6.3% higher than the 2011 median of $221,000. Total market time dropped 21.5% from 143 days last year to 112 days in 2012. The average price increase and the improved number of sales has resulted in a healthy increase in the total dollar volume of sales, which rose to $6.45 billion in 2012 from $5.2 billion in 2011 and $5.3 billion in 2010.

If you or someone you know is thinking about selling, now is a great time. Every home we have put on the market recently has sold in 2 days or less, for more money than list price. Record setting, pre-approved Buyer's are eagerly awaiting new homes to hit the market. Will your home be next?

We look forward to learning you needs, answering your questions, and helping you achieve your real estate goals.

Steve Roesch | Principal Broker, Owner
PDX Home Group, LLC
o. 503.748.8387 | c. 503.318.6351 | f. 503.748.8307
Steve@PDXHomeGroup.com

www.PDXHomeGroup.com  |  Find Your Next Home  |  Free Market Report

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Keller Williams Realty Professionals | 9755 SW Barnes Rd, Suite 560 | Portland, OR 97225

Consumer Confidence by Gallup

This is a follow up to a post I wrote in 2009, shortly after the consumer confidence had spiked from it's previous low of 53.  As you can see 2 years later, the consumer confidence of home buyers is hanging around 70% of people Gallup polled.  Looking back at the last 8 years tells a better story.  People were never more confident then in 2003.  Rates were low, banks were handing out loans, prices seemed to consistently be rising, even if only modestly in some areas of the US.  And then the entire market was pushed over the cliff in '06

So why have the last 3 years been nearly as high as 2005? 

• Have we stopped seeing foreclosures?
• Have the banks suddenly been lending money?
• Is employment the same rate as 2005?
• Have home prices been consistently rising since 2005?

None of the same trends from 2005 seem to exist, so why the confidence?

One reason and that is Affordability.

• Home prices reduced
• Household incomes
• Interest rates, century lows

Those who can buy, are experiencing this perfect storm that no one in 2005 was able to have.  2003-2005 confidence was there, because there was less fear. 

Today, you would agree, there is plenty of fear about our economy.  Sure, it's getting better.  Recovery is supposedly 2 years in the making.  But we are far from robust, and this recovery may never see robust.  Just like there were tiny recessions, we may only see a tiny recovery.

So, today's home buyer's have to deal with fear.  But, they are able to take advantage of unique factors that far over come their own fear.  And that is, home ownership, at remarkable affordability.  Home ownership, for nearly the same as their rents.  2nd time home buyers, matching the same price for their current home, and achieving much more house, for less payment.

For the complete story done by Gallup Poll click here.
www.gallup.com/poll/147248/Majority-Say-Good-Time-Buy-Home.aspx

The State of California's Real Estate Market

Many market conditions point to a healthy return of the housing market in California. Although, prices may not rebound at rates they did in the early 2000's, they also may stop falling any lower than they are now. That is only one reason to buy now.
Other reasons to buy now: Shrinking Inventory, Congress Driven Low Interest Rates, Cash Flow for investors, Homes are selling below the cost it takes to rebuild, etc...

Take a peek at this recorded webinar for a market update, and some great sample REO opportunities.