Clients and Friends.
THE GOOD NEWS…
With this report, we are charting what is expected to be a very good year for real estate sales in the Portland metroplex, and particularly in Yamhill County.
Inventory is very low because of strong sales volume, but new listings in January were as strong as they have been during the past 3 Januarys. Pending sales start the year robust, and closed sales are 26% higher than last January and the strongest January since at least 1992 and better than during the top of the market years. Yes, Portland has higher prices than the top of the market in 2007 but The Affordability Index, with all things considered, rates us still more affordable now. Interest rates remain exceptionally low, money is plentiful, and we have a wide variety of loan options. Portland remains a magnet for dramatic growth and nationally is exceptional as a relocation destination. We have much to be grateful for!
- Market Action Report January 2016
- Market Action Reports- Home Sales Data Jan 2016 Yamhill County
- Market Action Reports- Home Sales Data Jan 2016 Washington County
- Buildable Land- 1-5 acres 2-18-16
- Buildable Land- 6-20 acres 2-18-16
- Buildable Land- 21–2000 acres 2-18-16
NOT SO GOOD???
Coming off the worst housing market since the great depression of the 1930s, we welcome all this good news. The recovery is re-solving most of the economic problems created by the crash of 2007. This is good, even exciting- but not for everyone.
Portland, the last reasonably priced metroplex on the west coast, is getting very expensive; prices and rents are high!
The San Francisco Bay area is out-of-control expensive (mind-boggling) and Los Angeles and San Diego have been out of sight for a long time. Seattle used to be affordable but those days are long gone. We are seeing strong migration from all these cities (and elsewhere) to our area. Technology is allowing more flexibility for work and Portland is the beneficiary. Listen to comments online and to conversations and you will hear that there is strong fear and steady complaints that we are following a well-worn pattern and may be losing something we will live to regret. Growth of the kind that Portland is experiencing may be good for the future of our industry, and for property owners, investors & developers (and taxing entities) but it does come with sobering changes.
Additionally, regardless of what kind of real estate market conditions we have, there are always attendant economic fears of one kind or another. The stock market, a bull market since early 2009, is whimpering. The weight of world economic conditions now hangs heavy on our economy. Gas prices, a welcome relief to most of us, bring job and equity loses to millions and large geographic areas. We hear that we have a 50/50 chance of entering another economic recession, and the fear mongers are plentiful- especially ripe in an election year! All of these considerations should keep us humble, careful, and balanced.
JUST PERFECT (almost)
The greater Yamhill County area is a breath of fresh air! We are now fully participating in the housing recovery but without the excesses of our older sister, Portland (at least not yet!). It is good to be a seller and somewhat challenging to be a buyer. All our numbers are impressive and positive progressing well in the right direction. It certainly isn’t scary yet. At the bottom of page 2 we have included specific analysis focused on Oregon’s Wine Country epicenter.
You will find 3 data reports on the state of buildable land in Yamhill County. The data is broken into 3 reports of lists (1-5 acres; 6-20 acres; 21-2000 acres). Each report lists the sold properties in the past 12 months, the current pending sales, and the active competition for the marketplace this year. Sales are certainly satisfactory; pending sales are encouraging; active listings (about 1.5 years worth of inventory at the current rate of sales) reveal the hope and optimism of sellers and the competition for the buyers. Buildable land is the last sector of our marketplace to recover and we expect this year to be very good for these sales.
TIME FOR ACTION…
We are at the heart of the listing season now and buyers are flocking into the marketplace now. Remember, our best sales will be under contract before the end of July so if you, or someone you know, are considering selling this year, we eagerly look forward to being interviewed for the responsibility and for an opportunity to show you why Bella Casa Real Estate Group was the most successful office in the greater Yamhill County area in 2015!
Randy McCreith, Principal Broker
Email: [email protected]