Portland Real Estate Market Activity – November 2010

The winter slog has hit Portland, and I’m not talking just about the weather. As anticipated, November sales volume for the metro real estate market was light, but steady…sort of like drizzle.

The 1,279 closed sales were nearly identical to October’s total. The time-on-market figure climbed to 140 days on average for closed transactions. Available inventory is relatively unchanged–around 13,000 homes for sale in the Portland metro area.

The $233,000 median sale price dipped to the lowest level since May 2005 and is down 2.5% from the same month a year ago. The average sale price of $271,900 is 0.5% off of last year’s mark and is 23% below the high-water mark of August 2007. Northeast and Southeast Portland are showing the highest resistance to price erosion over the past 12 months.

Anectdotally speaking, other Portland agents are commenting that activity is up, but I suspect it is isolated. RMLS (the Portland-area multiple listing service) reports that the number of agents showing properties has slowed to 40 or 50% of the peak summer month activity levels.

Without job growth or an increase in consumer confidence, there is very little evidence of a short-term rebound in the local real estate market, so settle in for a slow and steady winter (i.e. low sales volumes and bouncing prices). Our first real indication of how 2011 will fare should surface around March.

Market Summary

November 2010 Last Month -
October 2010		 Last Year -
November 2009
Median Sale Price $233,000 $233,500 $239,000
Average Sale Price $271,900 $276,800 $273,300
Closed Sales 1,279 1,292 1,795
Pending Sales 1,426 1,632 1,328
New Listings 2,473 3,119 2,499
Active Listings 13,103 13,805 12,697
Total Market Time * 140 days 131 days 131 days
Inventory (in months) 10.2 10.7 7.1

Below is activity by market area. Please note that the median and average sale prices are year-to-date), and the appreciation numbers are a 12-month average compared to the previous 12-month average. Total market time is the number of days between the date it went on the market and when it received an acceptable offer.

Market Report by Area

Area YTD Avg.
Sale Price		 YTD Median
Sale Price		 12-Mo. Change Total Mkt
Time*
Lake Oswego / West Linn $434,400 $385,000 -7.9% 190
West Portland & Downtown $407,600 $337,500 -3.8% 189
NW Washington County $367,600 $337,200 -1.2% 102
Tigard / Tualatin / Sherwood / Wilsonville $304,500 $275,500 -3.8% 170
Northeast Portland $282,900 $247,000 -0.9% 108
Milwaukie / Clackamas $261,600 $240,000 -7.0% 155
Oregon City / Canby $256,300 $230,000 -8.8% 160
Southeast Portland $238,900 $208,300 -1.5% 102
Beaverton / Aloha $238,700 $215,400 -1.2% 135
North Portland $231,000 $225,000 -2.6% 102
Hillsboro / Forest Grove $227,300 $209,900 -6.4% 115
Yamhill County $217,200 $192,000 -5.0% 169
Gresham / Troutdale $213,000 $201,000 -3.1% 147
Columbia County $182,400 $174,500 -9.5% 108

Market data courtesy of RMLS, November 2010.

December 22, 2010 · Filed Under Market Activity

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Portland: A City Where Young People Go to Retire

Fred Armisen pokes fun at Portland and its hipster scene in his new show, Portlandia.

(Media link here if video doesn’t appear below.)

You’ve got to admit, some of it’s true :)

More clips.

December 17, 2010 · Filed Under Diversions

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Searching for Bank-Owned Properties in Portland

In our slow-moving economy, recent home buyers have been particularly price-conscious, guarding against overpaying in what continues to be an unsettled housing market. The past couple years haven’t made the value/price equation any easier due to short sale and foreclosure activity. 

One option, bank-owned properties (homes that have reverted back to the lender through default or foreclosure) can sometimes provide some of best housing bargains around.

I say sometimes. Bank-owned (also known as REO or Real Estate-Owned) homes can be:

  • Overpriced (still);
  • Not left in the best condition by their previous owner;
  • Unfinanceable due to condition;
  • Clouded in title, due to recent allegations of improper foreclosure processes by banks.

The process of buying a bank-owned property is not difficult, but does differ from buying from a private party homeowner. You will not get any useful property disclosures from the lender and they will undoubtedly respond to your offer with an addendum of their own that will attempt to shorten your due diligence and financing periods. Also, lenders rarely make repairs on their holdings, so don’t expect a lot of help there.

Nevertheless, the bank-owned property market can provide some of the more attractive values, if you have the time to monitor the selection and the will to filter the keepers from the losers. Good values tend to stick out, so you have to watch diligently and act quickly, as many REOs can generate multiple offers overnight.

Keeping track of bank-owned inventory couldn’t be easier. I’ve compiled some links below that will connect you to up-to-the-minute lists of bank-owned properties by area:

Bank-Owned Properties in and around Portland

These are not definitive community lists, but I can certainly put a custom search together for you and send you updates by email. Just drop me a note and let me know what parts of town or outlying area you’d like to watch.

December 4, 2010 · Filed Under First-Time Buyers, Market Activity

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