Local Market Statistics

February Residential Highlights
Activity in the Portland metro area picked up over the last month, but remained slow when compared to February of 2007. The level of inventory also fell 2.4 months from its record high in January (12.8 months) despite an increase in the number of active listings. The decrease can be attributed to increased sales volume in February compared to January. The 14,407 active residential listings at the end of February would last approximately 10.4 months at February’s rate of sales.

Compared with January 2008, closed sales were up 27.6% (1,384 v. 1,085) and pending sales rose 9.9% (1,837 v. 1,671). On the other hand, compared with February 2007, the number of new listings grew 4%, while closed sales declined 27.1% and pending sales fell 35.2% (see table below).

Year-to-Date
When comparing market activity for January-February 2008 to the same time in 2007, statistics show that the number of new listings was up 10.4%. On the other hand, closed sales decreased 29.5%. Pending sales also fell 34.7%.

Appreciation
When comparing prices for the 12 months ending with February 2008 with the prices for the 12 months ending in February 2007, the average sale price appreciated 5.8% ($344,700 v. $325,800). Using the same formula, the median sale price in the Portland metro area has appreciated 5.5% ($290,000 v. $275,000).

The good news about our housing market

Tuesday, April 01, 2008

The Oregonian's headline asserted that "economists expect worse is to come" ("Portland home values take first dip," March 26). But the story includes Lake Oswego economist Bill Conerly saying that he isn't certain how much home values will drop because so much of the market is driven by buyers' perceptions.

What do you suppose sensational headlines and dour front-page predictions do to buyers' perceptions? The biggest challenge facing Portland's housing market is uncertainty among buyers.

Most buyers aren't housing experts. So before they make a decision they want to feel assured that it's a good time to buy a house. Unfortunately, in a competitive news environment, headlines sell papers, and bad news sells even more.

The truth about our housing market is that home values are still holding strong in the Portland area. The Oregonian acknowledges this (once you read past the headlines), as the same story ultimately admitted that the decline is "such a slight drop, economists consider values to be essentially flat" and that "[home] values are leveling off."

In historical perspective, interest rates are low right now, inventory is high, sub-prime credit problems and loan defaults are far fewer in Oregon, and our housing market is faring much better than the rest of the country. Plus, people still want to move here, creating continued demand.

Housing experts agree that the best time to buy property is not at its peak in value, but in slower cycles. People who bought two years ago did it on the sellers' terms. Today's homebuyers with good credit have ample access to home loans at great rates, and they're getting more home value for their money than they've been able to get in recent memory.

Is the nation's housing market hurting? In some areas, absolutely. But Portland's market still has quite a bit of good news in it, and The Oregonian's front-page headlines fail to give readers a solid understanding about what is really happening locally and what is available to buyers, whether they are looking for their first home or their next home.

If you've been thinking about home ownership, look around and ask an expert you trust. Peaks and dips are a natural part of every housing market everywhere. Waiting until the market takes off again, as it always does, just means you'll pay more for less home value.

Brad Wurfel is director of communications and community relations for the Home Builders Association of Metropolitan Portland.

2007 Remodeling Cost vs. Value Index

Wondering how much of the cost you'll recoup from a midrange home remodeling project? According to REMODELING Magazine, some parts of the country are doing better than others, especially the Pacific region (California, Oregon, and Washington), where remodeling costs recouped at resale are 14% higher than the national average.

As detailed in the report below, a wood deck addition, minor kitchen remodel, and installation of wood replacement windows lead the pack in percentages of cost recouped in the Pacific region.

Local Real Estate Articles and Data from Portland State University’s Center for Real Estate Quarterly Report

Portland State University’s Center for Real Estate produces a Quarterly Real Estate Report, highlighting the current trends in real estate as well as an economic forecast of the real estate market.