The recent report of market activity shows that the Metro Portland market is still fairly slow for sellers.  At the end of September 2007, there were 16,054 active residential listings, with nearly 5,000 of those newly listed in September.  There were only 1,866 closed sales in September.  At that rate of closed sales, it would take approximately 8.6 months to sell off all available inventory.  This is the highest inventory rate since January 2000, when inventory reached 10.1 months.   

In September 2005, when interest rates were extremely low and Portland was experiencing a seller’s market, the inventory rate was 1.9 months.  2005 was the golden year for sellers.

Despite the heavy amount of inventory, appreciation is still favorable.  When comparing average sales prices from end of September 2006 to end of September 2007, RMLS shows that the average sales price appreciated by 6.9% ($337,700 vs $315,800).  These figures indicate that sellers are still profiting from their sales, but it’s taking a longer market time to realize those profits.

If you are looking to buy a home, this is the best market for you since sellers are competing against so many others and are typically willing to negotiate more in sales price and terms in order to sell.  If you are a seller, it may be best to wait a month or so before listing your house for sale to see if the market turns more in your favor.

Like the stock market, real estate is cyclical and is very difficult to time.  Please let me know if I can assist you with making the best decision regarding your sale or purchase.  You can reach me at 503-421-2407 or at phyllis@pointclickandpack.com.  I look forward to working with you.

All my best!

Phyllis