RMLS just released the April 2009 statistics and it looks like the market is starting to stabilize a bit! Inventory levels dropped again for the 3rd month in a row. We now have 11 months of inventory available. This is a still a high amount but a far, far improvement from our January 2009 inventory high of 19.2 months. And it tells me that the downward inventory trend seems to be continuing! Remember that in a healthy market, where buyer and seller motivators are more equal, inventory levels are typically in the 5-6 month range.

All counties in the Portland Metro area are still in depreciation and all areas except Mt Hood have experienced greater depreciation than last month. These stats seem to indicate that sellers are reducing their prices even more than before in order to make it to the closing table. We’re also seeing a greater number of bank owned properties closing and since these homes normally sell slightly below resale values, these homes might be partly responsible for the higher depreciation figures. Foreclosures might sometimes be a good deal for buyers but they bring down the value of the neighborhood, and in the end, that hurts even the bargain hunters. Since pending sales are continuing to rise, it will be interesting to see what happens with depreciation levels in May. Stay tuned…

What does all of this information mean for you? If you’re a seller, it means that buyer activity is picking up and your competition is leveling off. If you’re priced right or below market value, you should see at least an increased number of showings if not an offer soon.

If you’re thinking about putting your house on the market, now would be a good time. (You’ll remember that I advised new sellers to wait to list if possible during the past 4 months). We are just in the beginning of the “hot selling season” which lasts until October and most people like to buy prior to the start of the school year to get their kids settled in at a new school.

For buyers, the stabilizing market means you should act a bit more quickly if you want to capitalize on the deep discounts of bank owned properties and reduced prices of re-sales. Also, first-time home buyers need to CLOSE ON THEIR HOME PURCHASE PRIOR TO NOVEMBER 30th to qualify for the $8,000 tax credit from the stimulus package. The industry is expecting a record number of closings for the month of November because of this deadline and it would be best NOT to wait until the last minute if you want to guarantee your closing won’t get delayed due to lender or escrow heavy workloads!

I’d love to talk with you further about your particular real estate needs. Please don’t hesitate to call or send me an email!