Brad Paisley sings “Welcome to the Future”.

MAY 2010 PORTLAND REAL ESTATE UPDATE!!

Sales activity in the Portland Metro area continued to show improvement in April 2010 compared to the same month a year ago. Closed sales increased 49.1% and pending sales jumped 60.8%, and new listings rose 23.8%. The average sales price for April 2010 decreased 3.1% compared to April 2009, while the median sale price went down 4%. Month-to-month, there were minimal changes in prices. Comparing January through April 2010 with the same period in 2009, closed sales increased 41.4%. Pending sales jumped 46.3%, and new listings also rose 15.4%. We are now at 7.3 months of inventory, which is the lowest of this year. To give it some historical perspective, in 2008/2009 and thus far into 2010, 19.2 months of inventory was the highest (January 2009) and 6.5 months of inventory was the lowest (October 2009…note that was right before the initial first-time buyer credit was to expire). The average market time YTD is 138 days on market. A solid web presence, staging, pricing and a little patience are all virtues. We are adjusting to a new pace. As always, information is VERY neighborhood specific, so contact me for information about your area.

This said, I do believe we have experienced a bit of backlash in May from the expiration of the 2nd tax credit, which ended April 30th, 2010. (May’s Market Update may show some figures down from March and April 2010, though perhaps still better than the same time period in 2009). RMLS (Realtor’s Multiple Listing Service) stats showed that lockbox activity in the Portland Metro area was down 17.3%, when comparing the week of April 26-May 9th with the week prior. Today’s Monday morning stats show the activity recovering some of those losses and when comparing the week of May 10-16 with the week prior, lockbox activity was up 6.4% I think we will now have an opportunity to see what the “new normal” of the real estate market is and where we are in the recovery process without the artificial tax-credit.

As a buyer, the main obstacles I see in the real estate marketplace currently are restricted credit markets (loan programs are limited, money is tight, loan requirements have increased, appraisal standards are amplified) and diminished equity (many people would take advantage of this buyer’s market if they had enough equity in their existing property to move forward with their plans). But, the only way to find out is to ask me to run a analysis of recent comparable sales and plan a visit with a trusted mortgage broker. This is an incredible opportunity (with or without a tax credit) for some buyers. The week ended with mortgage rates hovering around 4.5% for a 30-year fixed loan!! And, FHA is a popular vehicle for that first-time buyer (or anyone purchasing a home with a loan amount of less than $418,750, more for duplexes, triplexes, etc) with only a required 3.5% down-payment. There are also some 90% LTV (loan-to-value, so 10% down) loans out there for “non-jumbo” loans (loan amounts of less than $417,000). So, with low interest rates and pricing you will find some good buys out there. Well-priced investment properties are a great addition to any financial portfolio. These properties are hard to find and even harder to secure, often with multiple offers. Follow my story on a duplex I am attempting to purchase. I almost “over-analyzed” myself right out of this great investment opportunity!!

As a seller, price is the new location. It is still very much a “buyer’s market”. There is a smaller pool of buyers, increased inventory and you must compete with pricing on short-sales and bank foreclosures. A very pragmatic approach to pricing your home is mandatory, even slightly over-priced properties will be ignored by an aware and savvy pool of buyers and dismissed by the showing Realtors. You must “think like a buyer”! Pricing is the hardest part of the marketing process these days because getting priced right is the key and will shorten market time and could ultimately result in more money in your pocket. I have felt a little momentum building again in the marketplace, so sellers have to decide how they want to be positioned in the marketplace!

Forbes Magazine is famous for its lists. And, Portland is always making one list or another. We recently made #16 on “The Best Places to be Single” . Also, #74 for “Best Bang for the Buck” .  And, finally #19 as “Best Places for Business and Careers” due to projected economic growth. Forbes.com analyzed the most recent Case-Shiller report to determine the best and worst housing markets in the nation. Forbes also analyzed monthly declines and year-over-year declines in home prices to determine where prices were falling fastest and where those drops were picking up momentum. Portland ranked fourth best in their study.

By the end of the month you will be able to enjoy my newly updated web site! It will definitely continue to offer the great “search properties” function and daily e-mailing of new property information. It will still include my blog and my Resource Guide as well as other links to valuable information and resources. But, it will have a new look and feel and the goal is to be more search-engine friendly so my listings can be more easily found on the web. Check it out…before and after!!

As always, your business and referrals are appreciated ….jj

About the Author | Janeese Jackson

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My job is service...service to you and your real estate transactions! How can you benefit from my 20 years of experience and expertise? What can I offer to make the process more productive? * Current information on available housing...comparative and competitive market pricing and analysis * Daily involvement in the local real estate marketplace * Thorough, comprehensive knowledge reflecting years of helping others complete their real estate business * Extensive network of professional resources to make the process as smooth as possible My commitment is to you! Being available to you...returning your calls...answering your questions...addressing your concerns...respecting your money...matching your timeline...meeting your expectations...helping accomplish your real estate goals!!