Clients and Friends,
2013 began with promising news for the local housing market this year. We now regularly see statistics that are better than any year back to 2007 when the market was white hot. The January 2013 Home Sales Report reveals that closed sales and pending sales outperformed any of the past 6 years. While The Market Action Report for January shows inventory increased from 3.6 to 4.7 months since December, this is the predictable influx of new listings in January of any year. 4.7 months worth of inventory is in the normal range. Notice that time on the market continues to drop, 16.3% less than a year ago.
Included in this email is an article, Buyer Advisory- Part Two. Last month we addressed interest rates, which have continued to slowly rise (now about 3.5% for a 30 year fixed rate loan); this month the topic is escalating prices. Price increases are measured by the Average Sales Price (actual solds) or the Median Sales Price (the mid-point of highest price and lowest price) See The Market Action Report. For example, the average sales price in Yamhill County rose 10.6% since January of 2012! Are prices really up by over 10% since last year? They are not! As housing improves, all price ranges (even the non-productive ones) make a come-back. Until the market is firing on all cylinders, higher priced sales will inordinately affect the average sale price. I can still show you some types of properties and price ranges that are still showing declining prices. When we know a ‘normal’ market, the average sale price will be more meaningful. This article is an important message about stabilizing pricing, improvements in all sectors of the market, and it puts us on notice of imminent price appreciation.
This issue contains the Affordability Index, a quarterly report surveying conditions over the past decade, located on the last page of the Market Action Report. We still have the 5th highest rating favoring buyers, but things are changing as both interest rates and prices begin to rise and inventory drops. Changing conditions are why we are focusing on a Buyers Advisory. Buyers need to be aware of prospective lost opportunity while sellers are relieved that their property will likely sell this year and without as much financial damage.
Only competent people on the ground in local markets can help you understand how all of this affects your particular property and the timing for your sale. Our Realtors®, most of them Principal Brokers, and all of them local experts, can help you price your property to sell without leaving money on the table. We can also help buyers find the best values and negotiate wisely so as not to miss great opportunities. Thank you for your trust in us and your referrals to your friends, family, neighbors, and coworkers.