The latest statistics from the Regional Multiple Listing Service show continued gradual improvement in the local real estate market. The median sales price rose by 2.74% over the prior monthwhile the inventory of homes available for sales dropped 10.47% to a new two-year low. This is the fourth consecutive month the inventory of homes for sale has decreased, and the current 5.7 month supply of available homes is down more than 35% from November of 2010. 

At this level, the real estate market is considered to be balanced, favoring neither buyers nor sellers. Sellers whose homes are appropriately priced for their location are starting to see offers shortly after going on the market, and in some cases we are again seeing multiple offers.

Compared to November of 2010, the average median home sale price is still just over 4% lower. However, the number of Portland Metro Area homes sold in the month of November is up slightly compared to last year, and the number of homes under contract is up significantly over last year.  This is a promising sign, considering that November through January are traditionally the slowest sales months of the real estate market year.

Portland Metropolitan Real Estate Market Results for September, 2011

The Portland Metropolitan Area‘s Regional Multiple Listing Service (RMLS) statistics for the month of September, 2011, show the overall market conditions are improving for both home buyers and home sellers.

 The number of sales under contract and closed sales in September both are higher than a year ago, although slightly lower than August. There were fewer new listings during September than August. The summer months traditionally show a higher level of activity, so this follows the normal pattern for the Portland Metropolitan area.

 The total number of homes offered for sale has dropped about 8% in the past month and is currently 33% lower than this time last year.  New listings for the month are down 13% below August figures.  At the current level of sales it would take approximiately 6.7 months to sell all active listings. At this level, the market is considered balanced between buyers and sellers.

Compared to August, sale prices decreased. Average sale prices are down 4.2% from August and 6.9% from a year ago. Median sale prices are down 3.8% from August and 7.5% from a year ago.  

To put these prices into perspective, according to http://www.deptofnumbers.com/asking-prices/oregon/portland/ (whose figures include non-mls sales) the the median price for Portland reached a low in February 2011 of $239,215, and has been steadily rising since then to the September level of $259,950. Although still below the prices a year ago, we have seen a decrease of 27.1% in the number of homes available for sale and an increase of 3.6% in the median price this year. Inventory has not been lower than this since July of 2006.

Bear in mind that the housing mix throughout the region varies greatly. Within many Metropolitan Portland RMLS areas, housing types range from small older homes to newer luxury properties. Thus, it is necessary to look at individual neighborhoods when evaluating changing price patterns. I can help with that.

On the financing side, home buyers are finding very attactive interest rates. Freddie Mac announced that 30-year fixed mortgage rates had reached an all time low of 4.01%. Locally, the lowest reported rates with 30-year rates reached as low as 3.95%.

For qualified home buyers market conditions have seldom been more favorable.