Portland Real Estate Market Update

November Residential Highlights

Sales activity continued to slow in the Portland metro area during November.

The number of closed sales dropped 39.9% compared to last November. The 1,041 sold properties was the lowest sales total since February 1993. Pending sales also fell 31.7% compared to last November. New listings decreased 20.2%.

Comparing November 2008 to October 2008, new listings dropped 25.5% (2,687 v. 3,605). Pending sales declined 12.6% (1,108 v. 1,268) and closed sales were down 28.9% (1,041 v. 1,465).

The inventory of homes grew to a record 15 months, assuming that the 15,611 active residential listings are sold at the month’s rate of sales (1,041).

Year-to-Date

Comparing January-November of 2008 to the same time period in 2007 there have been 31.8% less closed sales and 30.5% fewer pending sales this year. Additionally, there was a 8.3% decrease in the number new listings.

Sale Prices

The average sale price for November 2008 was down 10.5% compared to November 2007, while the median sale price dropped 7%.

Month-to-month, the average sale price and median sale price are both down when compared with October levels; the average sale price dropped 4.9% ($308,300 v. $324,300) and the median sale price was down 3.6% ($265,000 v. $275,000).

For more information about the local real estate market in your neighborhood, please contact me.

Source: RMLS Market Action News

Portland Real Estate Market Update for October

October Residential Highlights
Market Activity continues to be on the decline when compared to 2007. Pending sales fell 39.6% when comparing October 2008 with October 2007. The number of closed sales and new listings also fell, 21.4% and 21.6% respectively.

Comparing October to September, we also saw a decline across the board, although not as intense as the comparison above. There were 25.6% (1,268 v. 1,705) fewer accepted offers in October. Additionally, there were 14.2% (3,605 v. 4,200) less new listings added to the inventory. Further, there was a 10.7% (1,465 v. 1,640) drop in closed sales.

At the month’s rate of sales, the 16,257 active residential properties would last approximately 11.1 months.

Year-to-Date
Comparing January-October of 2008 to the same time period in 2007 there have been 31.3% fewer closed sales and 30.2% less accepted offers this year. In addition, there was a 7.5% decrease in the number of homes added to the market.

Affordability
Due to a decrease in the median home price in the Portland Metro Area ($267,000 in September) and a drop in the average interest rate (6.04% per Freddie Mac) a family earning the median income ($67,500 in 2008, per HUD) can afford 109% of the monthly mortgage payment on a median priced home according to a formula from the National Association of Realtors®. The formula assumes that the buyer has a 20% down payment and a 30 year fixed rate of 5.97% (per Freddie Mac).

Source: RMLS Market Action

September Portland Real Estate Update

While sales activity in the Portland metro area continues to slide, the slope of the decline leveled off a bit in September.

From August to September, closed sales have averaged a 12.9% decrease over the last five years. This year, however, closed sales only fell 7.3% (1,640 v. 1,770) from August to
September. Pending sales dropped 10.6% (1,705 v. 1,908). New listings
also decreased 4.5% (4,200 v. 4,398).

Similarly, comparing September this year with September 2007, pending sales are down 11.7% and closed sales dropped 12.1%. That’s less than half the drop we saw at the same time last year.

At the month’s rate of sales, the 17,006 active residential properties
would last approximately 10.4 months.

Third Quarter Report
In the third quarter of 2008, there was a 15% decrease in new listings
(14,089 v. 16,573) when compared to the same period a year ago. Closed
sales fell 26.4% (5,409 v. 7,351), while pending sales dropped 18.5% (5,471
v. 6,711).

Sale Prices
The average sale price for September 2008 was down 5.6%
compared to September 2007, while the median sale price dropped 5.8%.

Month-to-month, the average sale price and median sale price are
both down when compared with August levels; the average sale price
dropped 4.8% ($315,300 v. $331,300) and the median sale price was down
4.6% ($267,000 v. $280,000).