View the full analysis of July’s real estate market performance in the Market Action Report for July 2011 (this includes Yamhill County, Oregon).
The first news is good news. On the last page of the report you will see the quarterly Affordability Index. Since this amalgamation
of favorable indicators for buying real estate was developed in 2003 by the National Association of Realtors® we have reached a new high this July. Most people now realize that our prices are low (2004 levels), our interest rates amazingly low (as low as 4.1% for 30 year fixed loans), and inventory is still very good (12 months in Yamhill County). Banks have lots of money to lend to credible buyers (even if the process is daunting). Investors are in the marketplace, first time homebuyers are very fortunate, and anyone wanting to move up can sell low L but buy even lower J and get more.
The average sale price is also up, which does not portend higher prices, but it does say that we have people willing to buy in some higher price ranges. For a while it seemed like only starter homes were selling. We are now getting some activity and offers in properties up to $600k.
Otherwise… well, we have been through a storm this last month regarding the national debt and the credit rating of the US government. People, like businesses (which are people), need stability and predictability to make positive growth decisions. We invest when we believe we are secure and can reasonably expect a good return on our investment of money and our efforts. That is certainly not happening now at any level! In spite of the finest of buying conditions in a decade, our closed sales dropped 12.7% from June levels, pending sales are down 3.7%, and new listings declined 6.4%. We are tethered to the economy and the unemployment rate (somewhere between 9% and 17%). The low interest rates testify to the economic fears as people flee to bonds for security. It is the bond market mostly which forecasts mortgage rates.
I have attached The Market Action Report, A Market Trend Report for Yamhill County analyzing the current year through July, and a new article entitled, “Our Receding Market”. The latter is part of a series to help our clients understand the changes and effects on our marketplace during the past four years.
Our philosophy, and our practice, is to provide the best information with accurate local interpretation and understanding for our clients to make their best decisions about real estate. For sellers it is to make smarter decisions about selling and getting the job done before more is lost. For buyers it is to buy well now to avoid future complications. Whether with this kind of information or expert negotiations in a transaction, now more than ever, we all must work smarter. Thank you for entrusting your sales to us!
Randy McCreith, Principal Broker
Bella Casa Real Estate Group
Cell: 503-310-9147 Fax: 866-281-6653
McMinnville (19th & Hwy 99) Newberg (College & Hwy 99)
207 NE 19th Street, Suite 100 700 E 1st Street, Suite 100
McMinnville OR 97128 Newberg OR 97132
Buy. Sell. Be Happy.