June 15, 2012
I am glad to report that there is more good news for the housing industry in the greater Portland metro area including Yamhill County. This is the 9th month in a row of steady improvement for sales which is clearly a trend. The trajectory of the market this year is very encouraging.
May 2012 Summary:
- 20.4% more than last May
- 15.1% more than last month
- Year-to-date: up 15.3% in 2012
- This is the highest number of sales in any month for the past 5 years.
- 16.4% more than last May
- 6.6% higher than last month
- Year-to-date: up 16.8% in 2012
- The highest number of pending sales since May of 2007 (5 years; pre-crash)
- Current inventory is now very low at 4.2 months (the time to sell out all inventory at current rate of sales)
- This is the lowest inventory since March of 2007 (5 years; pre-crash)
- New listings continue to drop; 8.4% fewer than in 2011
The Median price of sales is 6.6% higher than last May and the second month in a row to post increases
The Average price of sales is 7.2% higher than last May
Time on the market to get an accepted offer is down 19.1% from last year
Yamhill County lags the improvements of Portland but the trend is radiating out to us. Our inventory is a 7.6 month supply. Our time on the market is still very high averaging 213 days. Our average sales price is down 2.6%. However, all of our numbers are improving all the same.
The Melting of the Buyers Market:
Clearly we have conditions to melt the buyers’ market we have experienced for five years (following a sellers’ market for four years before that). These conditions also contribute to break-up the log-jam of homes which could not sell because there were no buyers able or willing to buy. Many of these sales create more buyers to buy even more homes whether moving up or down. The affordability conditions for buyers are more exceptional than ever since the end of WWII. BUYERS SHOULD TAKE NOTICE THAT BARRING ANOTHER BLOW TO THE HOUSING SECTOR, THIS MAY BE THE BEST TIME TO BUY WE WILL EVER SEE AGAIN IN OUR LIFETIMES.
There is an increasingly large consensus that the housing market has bottomed out in many places nationally. Our numbers support that strongly for the Portland metro area.
Some Sobering Words for our Sellers…
- While the numbers are encouraging for our sellers, and the trend is stark, our numbers are still below a normal market. We have a ways to go before we have equilibrium between buyers and sellers (and a fairer marketplace).
- The best conditions are in Portland and it is taking time for this all to spread out Yamhill County. I was amazed and encouraged to review rural Sherwood pendings and sales recently. It is happening!
- The most active price ranges are still low but moving up steadily. This is a normal and predictable manner of change.
- Sales are still driven mostly by price. “Buying well” is about security in uncertain times. Property condition and amenities are very important to salability but pricing is the heart of the issue. The best prices comparably get sold!
Bella Casa Real Estate Group continues to thrive in this challenging time. Certainly we all need more sales and more income but there is light at the end of the tunnel for that. Currently and for the entire year, we are the top office on the sales charts for the county. Our Professional Cooperative continues to attract and retain some of the very best professionals in the area who have survived this housing depression. The depth of character and expertise and commitment of our Realtors® have accomplished something for our clients to have confidence in.
We are grateful for your trust, your patience, and your understanding and especially for your loyalty through the dark years. We are eager to get the job done for you. We are always grateful for your referrals of our services to your family, friends, co-workers, and neighbors. Thank you for your kind and appreciative words about us in the communities we serve. To you and to those you connect us we are committed to the spirit of our tag line: Buy. Sell. Be Happy.
Enjoy the summer…
Randy McCreith, Principal Broker
Bella Casa Real Estate Group
Cell: 503-310-9147 Fax: 866-281-6653