Current Market Action Report - Courtesy of RMLS - June 2008

The June 2008 RMLS Market Action Report is out, inventory has inched up again from 9.2 months in May to 9.5 months in June, but we are at least seeing a continued decrease in listings down 16.3% from June 2007; we do however need to see a greater decrease in listings.

We saw another price drop as well, 1% on average compared to June 2007 and 2% median compared to June 2007. These sales prices though have increased over May 2008, the average sales price is up by 4.1% and the median sales price just a nudge at 0.5% increase.

Looking at 2nd quarter comparisons we see a 34.7% drop in sales from the same quarter last year, a 31% drop in pending sales and only a 8.1% drop in listings, we need that last number to get much larger than it is to really start to see some significant improvement in the market.

Click Image for Report PDF

North & NE Portland are still the overall appreciation winners in the area though they are losing steam with the north coming in at 5.7% and NE at 6.7%. South East Portland is down to 2.1%. Gresham & Troutdale areas have fallen negative (that is depreciation) of 1.1%, Milwaukie & Clackamas areas (Smile Happy Valley!) continue to fall down to negative 8%...Ouch. Oregon City Real Estate is holding above the negatives at 1.6%, West Portland and Lake Oswego/West Linn are down, off their pedestal's at 4.9% (WP) and 4.3% (LO/WL)

Mt Hood / Government Camp areas continue to fall deeper into depreciation at -10.7%.

Portland West side, that is Beaverton/Aloha (1.3%), Tigard/Wilsonville (-0.6%) & Hillsboro/Forest Grove (-0.5%) continue to see losses as well.

Clark County saw no change in inventory, they were at 12.6 months last month and 12.6 months this month. Rather than mention individual areas I'll mention the very few areas that are not depreciating, those are SW Heights (4.7%), Cascade Park (5%), SE County (13.4%), N Felida (2.5%), N Salmon Creek (6.8%), Ridgefield (1.4%), NW East of I-5 County (4.7%), Mid-Central County (4.7%) & La Center @ 3.8%. The double digit depreciation rates go to E Heights (-16.4%), Battleground (-10.2%) & NE Corner at a whopping 26.7%!

All bad right? Well, the numbers certainly are not encouraging and the Fannie Mae & Freddie Mac issues haven't helped either. Now to add to that it looks like we're going to be losing some of the down payment assistance programs like Nehemiah & Ameridream which also isn't going to help...But here's the thing, we're in the market every day, buyer activity is increasing, we're seeing more and more analysts suggesting we've hit bottom and the ones that aren't saying that are talking about the market recovering by 2010 (sounds far off, but that's only a year and a half away).

Yes we're losing the zero down 100+% financing etc...Well, those are gone already and the very little (3%) down FHA programs & down payment assistance programs are an endangered species at this point as well...but these programs are not representative of a normal real estate market anyway. You use to need 20% down and really REALLY good credit to buy a home at 10%+ rates. We still have next to nothing down programs with not so perfect credit requirements at 7% and less. Home prices are about as low as they are going to get...If you're waiting for "bottom" and keep waiting, you're going to miss it. The media won't be talking about a confirmed "bottom" until it's 6 months gone.

Our advice, don't be a contributor to the problem, be part of the solution, get off the fence find your home and buy it. A recovery will not happen until those on those fence buyers step off the fence and step up to the plate.

To download or view the entire report click on the report image or click here

2008 RMLS Market Action Report Archives

May 2008

April 2008

March 2008

February 2008
January 2008

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