Friends and Clients,
This report is about April’s real estate market performance, but it is early June as I write this. A year ago in June was the month that awakened us to the beginning of the housing market recovery in the Yamhill County area. With April’s report we continue a trend of posting the best numbers in over 5 years, really since this time in 2007 (6 years), just before the bottom dropped out of the housing market.
Times are changing quickly:
Notice that the Affordability Index, which has been amazingly positive, is dropping. We have been advising, really warning, buyers that it is not a buyers’ market anymore! Sellers are breathing a sigh of relief as prices are systematically rising- in some cases correcting/rebounding dramatically, and interest rates are on the increase. Last fall we saw a low of 3.1% on a 30 yr fixed loan; we currently are seeing rates of 3.75% to over 4% right now. Distressed sales are slowly disappearing. The most affordable conditions since WWII are dissolving month to month as the marketplace heats up.
In the greater Yamhill County area, rural properties, buildable lots & land, specialty properties (e.g. farm & vineyard) and luxury property sales are finally strengthening. We are seeing buyers from all over the nation looking to buy in our area again and expect this to expand this summer. Portland buyers are once again able to move out to the country and buy land. Overall, we are doing very well in all other sales categories.
Sellers can now ask for more money and negotiate fewer concessions. Inventory (selection) is low for buyers but there are still great bargains in the marketplace (and bank-owned inventory to clean out). Even if buyers pay more now and take loans with over 4% interest rates keep this in mind:
- For over 40 years, no one even had the audacity to hope for interest rates as low as 6%!
- Prices are still significantly lower than they have been for the better part of a decade (do not misinterpret the average/median price increases)
- Sellers, if you do not get all that you want today, think about the value you get from buying today, instead of next year, and average that together
- Do not lose the opportunities already present and possibly find yourself with significantly worse options 2 or 3 years from now.
We are quite busy but expanding and adapting to meet the needs of our clients. The transactions are exceedingly challenging still and a great amount of our energy goes into protecting and saving opportunities for our clients. We are grateful for the opportunity to serve you. We are never too busy for your referrals of family and friends, of neighbors and community connections, of colleagues and co-workers. Your trust in us is something we treasure. Thank you!
Read the Reports Now:
Portland Area Market Action Report – April 2013
Homes Sales Report – April 2013
Randy McCreith, Principal Broker
Cell: 503-310-9147 Fax: 866-281-6653