Market Action – February 2009

RMLS just released their February Market Action report and it is definitely a good news, bad news scenario. 

The good news is that the Portland Metro market is much improved over the all-time slow January 2009.  However, the market is still significantly down compared to February of last year.  All the major categories of listings dropped from Feb 2008 to 2008.  Closed sales were down almost 40%, pending sales were down 30%, and new listings were down 20%.  Having new listings down is actually a very good thing, though.  In my opinion, the market won’t really start recovering until some of the inventory gets absorbed.   Our inventory is currently rated at 16.6 months, which is down significantly from last month’s 19.2 figure, but way higher than the 6 month figure I believe signals a balanced market.  What this boils down to, of course, is that Portland is still experiencing an incredibly strong buyers’ market.  That’s great news for most of my clients, but it is obviously of great concern to many potential home sellers.

The good news is that a well-priced home in a good location will still sell.  More than ever, though, now is the time to put your best foot forward.  It is not the time to overprice your property with the hopes of negotiating down to what you consider a fair price.  My advice for potential sellers, get your home in the best possible condition and make sure it is ready to show and show well.  That first impression is everything.  Make sure the pictures are perfect and show off your property’s best qualities.  Most importantly, price your home right! 

For the entire Portland Metro market, home prices were down 13% compared to February 2008.  However, with such a small sample size, that number is probably a bit inflated.  As I’ve mentioned continuously, though, real estate is inherently local.  The national numbers, while interesting, do not directly affect Portland.  The same can be said of Portland Metro itself, though.  What’s happening in Beaverton or Happy Valley is not necessarily what’s happening in SE Portland.  Not to put too fine a point on it, but SE Portland can even be broken down to Hawthorne, Sellwood, Ladd’s Addition, Lents, etc.  The local trends are what really matter.  With that said, here are the appreciation figures:

·         N Portland          -1.2%

·         NE Portland          -1.2%

·         SE Portland          -5.9%

·         W Portland          -1.9%

The market graph is pictured below, but I’d be happy to email you a complete Market Action report if you’d like.  Just email and let me know.

As always, I continue to hold my biweekly Home Buying 101 workshop for first time home buyers.  It’s laid back, but extremely informative.  If you or anyone you know would like to attend, contact me for scheduling.  My business is built on referrals, so if anyone you know is thinking about buying or selling, I would very much appreciate the referral.