Prices have rebounded from the January low–the average home sold for $262,400 and the median price came in at $225,000. It is not uncommon to see prices rise during the peak months, and these figures are comparable to prices a year ago.

Some market areas (Lake Oswego/West Linn and North Portland) are starting to show actual appreciation when measuring 12-month rolling averages from a year ago.

Here are the figures for April:

Market Summary

Below is activity by market area. 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

Overall, prices are still fluctuating. The average sale price for the metro area was $252,000, down from $261,00 in March 2011. Some market areas, however, are starting to show some year-over-year appreciation.

Listings continue to be exceedingly scarce, however, with just 8,391 properties or 5 months’ inventory available at the end of March. By comparison, March 2011 had 11,458 units on the market. Nearly 2,300 properties received acceptable offers and were noted as sale pending in March.

Here are the figures for March:

Market Summary

Below is activity by market area. 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

Market Summary

Below is activity by market area. 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

January and February are traditionally the slowest months in the market, so the smaller sample is partially to blame for the pricing decline. Twelve-month rolling calculations showed 6.9% and 6.1% declines in median and average prices when comparing Feb 2011 – Jan 2012 to Feb 2010 – Jan 2011.

With only 8,500 properties on the market at the end of January, buyers have little to sift through. It’s not uncommon to see 2 or 3 parties queued up on the porch to view close-in neighborhood listings, and multiple offers are back in style.

Here are the figures for January:

Market Summary

Below is activity by market area. Please note that median and average sale prices are only for January 2012, so prices might seem wonky due to the light sample. 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

“Wait!” you say. “Doesn’t 5 or 6 months of inventory signal a seller’s market?” you ask. Yeah, that’s the weird dichotomy the market presents. Over a third of transactions are distress sales and prices are still declining (albeit at a slower rate). Yet, in close-in neighborhoods or in well-kept properties that are priced reasonably, you can count on quick sales and sometimes, multiple offers. Four of the 6 homes I showed last Saturday were sale-pending by Tuesday morning.

Month-to-month average and median sale prices are bouncing somewhat, but for the year vs. 2010, the market was down 6.7% on average and 7.9% at the median. I will share 2011 end-of-year stats later this week.

Here are the figures for December:

Market Summary

Below is activity by market area. Please note that median and average sale prices are year-to-date. 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

However, available inventory, at just 9,451 units is at the lowest level since the summer of 2006. At the current pace of sales, the market would exhaust supply in 6.2 months. Nearly a third of homes sold in November could be described as ‘distress’ sales — either a short sale or bank-owned foreclosure.

Prices are slightly softer than a year ago, down about 4.6% on average and 3.4% for the median. The average home sale in November was $259,400. That is 27% off peak prices from the summer of 2008.

On that note, below is the grisly 11-year view of median home prices and various rates of appreciation since 2000. After some stabilization in 2009 and a sharp decline in late 2010, 2011 showed some signs of recovery despite some seasonal choppiness at the end.

Click for larger view

Here is a closer look at 2010 and 2011.

Click for larger view

Here are the tables for November:

Market Summary

Below is activity by market area. Please note that median and average sale prices are year-to-date. 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

Compared to September, closed sales dropped 7%, the median price dipped 6.7% and the average slumped by 6.5%. The average sale price in October was $258,700 and the midpoint weighed in at $217,800 — the lowest levels since the market thawed in early 2011.

Nearly a third of closed sales were short sales or bank-owned foreclosures. November closings should be on par with October, however, with a slight rise in pending sales over October’s totals. The average time on market is around 4.5 months.

On a year-to-date basis, closed sales are up 2.1% and pending sales up 4.5% over 2010. However, new listings are off 26.3% from last year. Active inventory is the lowest since February 2007, starving motivated buyers for choices. Starting November, less than seven months’ inventory exists, around 10,000 homes.

Market Summary

Below is activity by market area on year-to-date basis.

Market Report by Area

A recent article in Portland’s local daily newspaper highlights the increased demand for apartment rentals, as well as the rising rent rolls. According to local property managers, average rents in the Portland area have risen 8% in the past year. The average 2-bedroom, 1-bath apartment in the Portland metro area runs $743 a month, although there is a wide range of pricing from area to area (see chart below).

While most property managers plan on an 8% vacancy rate (average 1 month per year), recent vacancies are below 4% (even lower in the city core). And because new apartment development slowed during the recent housing downturn, new inventory will be slim until developers find the wherewithal to build again — meaning rents aren’t going down anytime soon.

Are these reasons to consider a purchase instead? Not if your job situation is tenuous, or you’re new to the area, or the responsibilities of owning aren’t your thing. But at some point, the trade-offs may be worth a second look.

Portland Apartment Rental Market

Data source: Metro Multifamily Housing Association, via The Oregonian Business section. Full coverage at Oregonlive.com.

Home sales slowed in September–a normal, seasonal pattern to be sure, however the level was nearly 200 units higher than in September 2010. Year-to-date, 2011′s total homes sales are slightly ahead of the pace set in 2010.

Inventory levels continue to stymie buyers as available listings are at the lowest levels since March 2007, when homes lasted all of 10 nanoseconds on the market. The 10,666 listings available at the end of September would last 6.7 months at the current pace of sales. New listings for the month (2,501) are down 30% compared to September 2010.

The median sale price across the market has been steadily creeping upward since its low in February, recovering to late 2010 levels. And although the median sale price has perked up, the average sale price tailed off slightly, suggesting that properties in the higher price ranges suffered some declines during the month.

Records show a decline in the percentage of homes sold in a distress situation. The early part of the year saw 35 to 40% of total homes sold in a short sale or bank-owned foreclosure, but that rate has steadily fallen now below 30%, giving credence to the rumors that banks may be holding back some inventory.

Market Summary

Below is activity by market area. Please note that median and average sale prices are year-to-date. 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

Virtually the same number of homes have sold across the Portland area January through August in both 2010 and 2011. Given there were no artificial government tax incentives this year, that’s probably a good thing. Home sales figures have been more consistent in 2011 — no real spikes in activity, unlike 2010.

The dearth of new listings and the steady flow of closed sales has left the market with just 6.2 months of available inventory. If the supposed ‘shadow inventory’ of properties held back by lenders due to MERS confusion or other factors is unleashed, be prepared for additional price reductions.

In other (obvious) news, mortgage interest rates are ridiculously low. If you haven’t refinanced or are wondering what kind of buying power these low rates will get you, let me know and I’ll refer you to some great brokers and bankers for some advice.

Market Summary

Below is activity by market area. Please note that median and average sale prices are year-to-date. 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