2011 was an interesting year for real estate in the Portland Metro area. When comparing to 2010, closed sales rose 4%, pending sales rose 6% and new listings fell a HUGE 25%. Comparatively, however, the average sale price declined by 6.7% from 2010 to 2011.
So what could these numbers mean?
We’re seeing an incredible decline in new inventory coming on the market, which means there has been more competition amongst buyers. This competition does not, however, seem to be affecting sale price signifcantly. The undervalued distressed market also might be a factor in the decrease in new listings. Equity homeowners are realizing they will not sell their homes for the price they want when competing against undervalued distressed properties–so they postpone listing their home until it is essential.
While everyone is waiting for the economy to hit bottom before they buy, there are slight signs of hope on a month-to-month basis–which has everyone hopeful that 2012 could be the turning of the tides. The average sale price rose 0.5% from November 2011 to December 2011–an upward month-to-month trend that had been repeated several times in 2011.
With low interest rates and depleting inventories–now is one of the best times to search for your next home. Call me today to talk about your options.
Joelle Lewis | RE/MAX Equity Group Lake Oswego