HOUSING RECOVERY SUSTAINED: Market Action Report
Contrary to popular thinking, August and September are often the slowest and most disappointing months of the year for sales in my experience. Not this year! The intensity of real estate services right now is why this report is so late. It took a holiday weekend to find the time. Property showings and sales are brisk. Our August was dramatically better than any month since we launched Bella Casa Real Estate Group in March of 2007. Our scheduled closings for September are already record setting for us and we are beginning to get sales slated for October. A housing recovery that began for us in our area last September has continued improving every month since. July, August, and September will be very good months.
The impressive buzz of sales begun in Portland early this year has radiated out to our areas as we thought it would. The Portland metro area is doing better than the national averages you are hearing about in the news. The July report shows continued strength year to year but is beginning to taper off as is the normal cycle of the year. The many graphs in the report reveal the normal cycle.
We are finally seeing an increase of properties coming on the market as the word spreads that one has the better odds of selling now than in 5 years. Adding to this good news for sellers is that every additional sale right now breaks the tight log jam of inventory, creating more buyers, and allows the market to begin to flow more naturally again. Though the inventory jumped from 3.9 month’s supply to 4.6 months, this represents a good dynamic rather than a worsening of conditions. There are new properties coming on the market to satisfy the buyers. A 4-6 months of inventory is a balanced market for sellers and buyers and a fair exchange of value.
Compared to last July, Pending Sales are up 23 %. Closed sales, following very good June stats for pending sales are up 15.4%. Right now, the sales transaction process is consistently taking more than 30 days so some of the sales signed in June will still close in September.
The quarterly Affordability Index (see the end of the report) dropped a bit at the end of the second quarter over the quarters ending in March and December. I suspect the low level of inventory is part of the difference and perhaps the stabilizing of prices a contributor to that. The last 3 quarters remain the most affordable time to buy housing in the past decade. Other longer term studies show that buying conditions are the best since WWII.
MORE IMPROVEMENT EXPECTED:
Right now, the rising tide has minimally, at best, affected our rural properties. We expect that to improve shortly as more and more buyers, particularly from out of state, go shopping in the country. Likely, the last category of sales to improve will be buildable rural small acreage parcels. Unfortunately for these sellers, it is still less expensive to buy housing in any price range than to build it. With noticeable improvements in the new construction industry at play, we also believe this will improve significantly by spring and summer next, if all continues in this direction. We also continue to expect improvement in Yamhill County’s inventory which remains high at a 9.6 month supply.
SOME FRUIT REALIZED!
Bella Casa Real Estate Group Continues to be the brand of choice for Sellers and Buyers in Oregon’s wine region. After 5 years of famine, we are survivors and are prospering. Our commitments to long and hard work, excellent client services, and persistence and patience are bearing the kind of fruit we envisioned. I have attached the status of sales by offices selling in Yamhill County ending 8-31-12. We hope this continues to inspire hope and confidence in our clients, and to convince prospective clients that the best value for dependable and professional service remains Bella Casa.
Home Sales Report – see what kind of properties are selling
Real Estate Office Sales – Bella Casa is #1!
Thank you for entrusting your properties to us and your purchases to us. We appreciate you so very much and are grateful for your referrals to us and the good word you help to spread about us.
Randy McCreith, Principal Broker
Bella Casa Real Estate Group
Cell: 503-310-9147 Fax: 866-281-6653