Clients and Friends,
We had a bit of a pause in the market in June which spooked some of us. It was likely caused by the 1% interest hike. The market rebounded in July in the Portland Metro area counties. Once again, we have the best numbers in 5-6 years for our markets.
Closed Sales (solds):
- Year to date: 19.6% better than 2012
- 40.2% better than July 2012
- Up 10.2% from last month
- Best July since 2005!
Pending Sales (accepted offers)
- Year to date: 17.2% better than 2012
- 15.4 better than July 2012
- DOWN 2.4% from last month
New Listings (it is a good time to list your property for sale)
- 22.6% higher than July 2012
- Up 3.4% from last month
- Year to date: 10.7% better than 2012
Pricing: (reflects both increased prices and more higher end sales pulling up the averages)
- Average Sales Price: +14%;
- Median Price: +13.7%
Inventory is down to 2.8 month supply at the current rate of sales
- 4-6 months is considered a balanced market; The 5 year high was almost 20 months!
Market Time (average number of days on market- DOM) is down over 36% from last year
Some thoughts…
The average sale price and the median sale price are at levels we had in 2006 and 2009; we are recovering to more normal times and better days for the housing industry. More than anything, this proves the market is hitting on all cylinders (price ranges).
The Affordability Index is also back to levels of 2009 and this is not good news to buyers. The days of historically exceptional buying power are behind us. Higher interest rates, radically reduced selection, and higher prices, are cutting into buyer purchases. We encourage people to consider the long view; we still have incredible interest rates and low prices. However, buyers should be thoughtful about buying now before the trend prices them out of particular kinds of purchases they are considering.
I attached an article focusing in on a couple sectors of our market which have been the most distressed and the most challenges. While this year continues to be a challenge for Luxury Homes and Buildable Land, there is clear evidence of recovery and promise of better days ahead next year.
As always, glad to interact with you about the market conditions, and our strategies for meeting the challenges with success. We are grateful for your trust and your referrals of your family, friends, neighbors, and co-workers.
View the entire Portland Area Market Action Report for July 2013.
View the Market Action Home Sales Report for July 2013.
Best regards,
Randy
Randy McCreith, Principal Broker
The McCreith Team
Bella Casa Real Estate Group
Cell: 503-310-9147 Fax: 866-281-6653
[email protected]
