Cold December Stats in Portland, OR


Folks, it is a wonderful time to buy a home. Whether it is your first home, second home, or even an investment property, you will rarely find a market better than our current market. Interest rates are in the 5% range for 30-yr fixed loans, prices have dropped, and there are a lot of homes on the market.

According to RMLS, we have 14.1 months of inventory at our current rate of sales, and sales have fallen by over 30% from December 2007 to December 2008. This means that sellers must be very competitive in their pricing, and the condition of the home must be ideal. I see many sellers that have homes sitting on the market because they aren’t prepared to price competitively or make changes to the condition of their home. So in a sense, the inventory number of 14.1 is misleading because some of these homes just aren’t in the game. We have an interesting dilemma from my perspective. Buyers have a fantastic position in the market, but are tentative because of the current economic situation. Sellers want to sell, but some can’t adjust prices because they might end up losing any equity that they have in their home. The best way to sell is to get your home in great condition, and price it near or below comparable properties. It simply has to be the most enticing home on the block!

As of right now, only West Portland has seen an increase in home prices (1.9%) from the last 12 months compared to the previous 12 months (December 2006 to 2007), and I am confident that will disappear next month. So what do we do? Well… if you sell high, you are going to buy high. Conversely, if you sell low, you are going to buy low. There are still plenty of opportunities and strategies to do well in this market, give me a call if you want to look at your unique situation. Have a good month!

January 24, 2009 · Filed Under Portland Data, Portland Real Estate Market Data

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