Latest Market Action Analysis from RMLS

Well…its a bit of mixed news in the Real Estate Market according to last months stats from RMLS Market Action Report. Inventory has dropped to 10.2 months from 11 months in April. This marks the fourth straight month that we have had a decrease in inventory. We had an increase in pending sales of about 6% from last month to this month and an almost 10% increase in closed sales. This is an absolutely positive stat, however, we have also seen an average sales price below the YTD average sales price of homes, indicating that our market is still declining, although slightly. The troubling news, in my opinion, is that this has been the best market in recent memory to purchase a home. Interest rates were in the mid 4%’s for a 30 yr fixed and the government is offering an $8000.00 tax credit to first time buyers. In the last three weeks, interest rates have jumped 1%, and buyers have lost out on their impressive purchasing power. My thought is that we probably should have seen more of a bump in pending and closed sales while the conditions were prime, and we may have to wait a long time to see that scenario again

Conversely, the bump in activity is welcome. We generally see an increase of activity in the Spring and Summer months, with activity slowing again in August. Certain markets are also doing extremely well. Properties priced below $350,000 in Inner N, NE, SE, and SW are literally flying off of the market provided they are in good condition and priced well. The interesting trend to watch for will be the new buyers from those sold homes under $350,000 and if they turn around and purchase properties in the higher price ranges. Even at 5.5%, interest rates are good, and many brokers are hoping to see this scenario unfold in June.

As a reminder, please contact me if you or any of your friends or family have questions concerning the market. I am happy to talk with them!

June 19, 2009 · Filed Under Portland Real Estate Market Data

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    I am a Realtor with Keller Williams Realty Professionals specializing in Residential Real Estate Sales and Purchases in Portland, Oregon and the surrounding communities. I have extensive experience and knowledge buying and selling homes in the Portland area and love living here. Enjoy the site, and contact me if you have any questions regarding buying or selling a home in or around Portland!

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