Portland-Area Residential Market Activity - April 2006
May 15th, 2006
Mixed news greets the residential real estate community with the announcement of April 2006 results.
First, inventory is rising ever so slightly. New listings are up 7.5% over this time last year. Accepted offers and closed sales are down 18.2% and 16.2% respectively. At the current pace of home sales, the active inventory would take 2.4 months to sell out (up from 1.8 months a year ago).
However, sales continue to be brisk and appreciation remains strong. The average market time for properties year-to-date is 44 days, versus 56 days this time last year. Twelve-month average appreciation for Portland-area residential properties is 16.8%. The average sale price over the past 12 months in the market is now $296,600 (vs. $254,000 for 04/2004 through 05/2005).
The bottom line? The market is moving much more slowly toward a more balanced dynamic between sellers and buyers than I had anticipated. There are perhaps more properties for buyers to choose among, but prices have not flattened.
For a more complete grid of average and median sale prices, appreciation, and days on market by community, visit my Market Action page.
Source: RMLS Market Action, May 2006.
Technorati Tags: Portland, real+estate, market+activity, appreciation, homes, sales
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2 Comments Add your own
1. Larry Morris | May 16th, 2006 at 12:50 pm
Good analysis. This is what I’ve seen as well for the last 2 months. It seems that Sellers are still in the mindset of last July-October, thinking that they can get multiple offers over listing price. This just isn’t happening on most properties.
It also appears that a lot of investors are less willing to take a chance on “market value” properties than they were last summer.
Rates are also higher now than they were at this time last summer, in fact they are the highest they’ve been in 2+ years. Still, Still, as Hayes Barnard would say, they are at historical lows.
Keep up the good work on your blog!
2. Ron | May 19th, 2006 at 12:59 am
Thanks Larry for the kind words.
I’ve noticed that out-of-state buyers are much more motivated/aggressive than local buyers. They are making decisions quickly and without remorse.
I have not paid much attention to the investor segment. There just isn’t enough inventory to create leverage. Still, some seem to be doing well, nevertheless. That’s what 17% appreciation over 12 months will do for you.
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