The Numbers: Good-bye to the Buyers’ Market?

(The following information is based on October’s Market Action report, courtesy RMLS)

Check out that inventory!  6.5 months?  You could make an argument that we’ve reached that elusive “balanced market”.  Personally, I would like to see a inventory figure between 4 and 6 or so for a few consecutive months before I deem Portland a balanced market (as opposed to a buyers’ or sellers’), but it certainly looks like we’re well on our way. 

Pending and closed sales are WAY up versus October 2008.  When I say way up, I MEAN way up.  Pending sales were up 64%, which is the largest same month increase since February 1996, also known as Winter Quarter of my senior year at UCSB.  Yeah, it’s been awhile.  Closed sales were up a ridiculous 37% versus October last year.

The month-to-month figures aren’t quite as staggering, but they’re fairly impressive nonetheless.  Closed sales increased 11% compared to September 2009. 

Why all the activity?  I think we can safely assume that the first time buyer tax credit’s, then, expected expiration drove many buyers into making quick decisions.  It’s definitely possible that the tax credit extension will actually slow sales back down, but we won’t really know for another month or two.

In the meantime, remember that it is still an incredible time to be a home buyer.  $8000 tax credit for first time buyers.  $6500 tax credit for many current home owners.  Extremely low mortgage interest rates.  Etc.