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
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