The Market’s Looking Up!

RMLS just released the November Market Action report showing an extraordinary leap in sales activity. 

When comparing this November to November 2008, closed sales increased a monstrous 72%.  You read that right, 72%!  That is the largest same-month increase on record.  Pending sales also showed a significant 20% gain.

November’s activity, though, was lower than October’s (closed sales down 11%, pendings down 36%), but much of that can be attributed to the season and the weather.  In my experience, there is always a significant activity drop off between October and November as Portland enters the cold, rainy season.  The holidays certainly contribute to lower sales activity, as well.

In my opinion, the market has found its equilibrium.  Inventory has remained relatively stable since July and now measures 7.1 months.  The only negative piece of information, and it’s really no surprise, is the continued decrease in sales price.  Average sales price was down 11% versus November 2008 and the rolling twelve-month average shows a 13% decrease.  However, the month-to-month decreases are happening at a much slower rate (2.5% median sales price decrease versus October).  Again, the market seems to have found its center.

As any home seller will tell you, showing activity is still slow.  The average total market time for a property to sell is now 131 days.  I would expect that number to inch upwards in December, but then start coming down the first quarter of 2010.  My advice to home sellers, hang in there!  It’s just a matter of finding that one buyer.  If your home is priced well and is getting enough exposure, it’s just a waiting game.  An admittedly frustrating waiting game, but a waiting game nonetheless.