Portland Real Estate Market Action, January 2011
The 2010 numbers are in, and they were not pretty. When January 2011 numbers are compared to January 2010, there was a decline of 11.9% in average sale price. The median price was also down 10.4% over the same time period. On the positive side, the inventory of homes was lower in January 2011 vs. 2010; it came in at 11.3 months compared to 12.6 last year. In order for a real estate recovery to begin, excess inventory needs to be soaked up by buyers.
Market times continue to be longâ€¦ around 160 days, and this number is worse than a year ago, when it was 145 days.
Average sale prices of homes in Portland are approximately the same as is January 2005.
People ask me almost every day, â€œWhen will the market recover?â€ or â€œAre we at the bottom yet?â€ I usually answer â€œmaybeâ€, but nobody really knows when the local market will really recover. 2011 will be a great year for certain types of buyersâ€¦ buyers who want to move up into bigger or nicer home, first time buyers who plan on holding the property for a few years, investors who are looking for rental property and investors who resell real estate. These buyers will be able to get a lot of value in 2011.
The story for the real estate market in 2011 is affordability: the combination of low prices with low interest rates.
Graphs and data used in this article were provided by RMLS.