Friends and Colleagues:
The Market Action Reports of December 2014 cap a second successful year of real estate recovery (for Portland, a 3rd year). There is something good in these pages for everyone to celebrate. The market conditions in the best of these areas reflect the volume and pricing of the top of the market in 2007- not necessarily the peaks in volume (2005), nor the high water marks of average and median pricing (see the charts), but definitely the success of the top-of-the-market numbers. It remains true, however, that the farther out from downtown Portland one is, the slower and the weaker is the recovery. Rural properties lag more than any other category. In our area we have many rural acreage properties and still some struggling rural towns which are still waiting. Their prices remain low, their sales volume remains light, and their demand remains weak. To end this paragraph on a positive note, at least every aspect of real estate is moving in the right direction.
December 2014 compared with December of 2013, the following improvements are now in the book:
- Closed sales: +25.6%
- Pending sales: +12.3%
- New listings: +15.5%
- Time on the market: from 87 days to 76 days
- Inventory: from 3.2 months to 2.3 months
- Average sale price: from $310k to $333k
- Median sale price: from $265k to $285k
Year over year, 2014 over 2013:
- Closed sales: +3.6%
- Pending sales: +4.3%
- New listings: +5.0%
- Time on the market: 76 days
- Inventory: drops to a lowest point: 2.3 months
- Average sale price: +7.2% now at levels at the top of the market
- Median sale price: +7.7% now at levels at the top of the market
– Distressed listings and sales are up in numbers but with a less significant effect on the marketplace (4 pages).
– Home Sales Reports for both Yamhill County and Washington County (4 pages).
Interest rates are down well under 4% (as low as 3.5% for a 30 year fixed loan) and we are off to a good start to the year. We are expecting a better year for sales this year than we have seen since the top of the market in 2006 and 2007. We still have challenges and disappointments but overall, things are getting better across the board. We are glad to help you understand how the market impacts your property. It is the peak season to list properties (for the next 6months) so please call us if you are considering a sale or know someone who might be. We continue to expand our services and improve our methods to be the best in the business for our area.