This is a “back-of-the-napkin” summary of the Portland-Metro real estate stats for October 2014, according to the RMLS’s™ Market Action Report, here.
- Closed sales at 2,487, represent a 13.6% increase over the 2,189 closings for October 2013;
- According to Market Action, this was “…the strongest October for closings in the Portland metro area since 2006 when there were 2,503.”
- Pending sales at 2,480, were 16.7% higher than the 2,125 offers accepted in October, 2013;
- New listings, at 2,881, increased 13.6% over October 2013, which was 2,535;
- Currently there are 6,963 active residential listings;
- Total market time in October ticked up a bit to 65 days;
- Inventory decreased to 2.8 months[1];
- The average sale price January – October, 2014 was $333,200, i.e. up 7.4% from the same period in 2013, when it was $310,200.
- The median sale price January – October, 2014 was $265,000, i.e. up 7.5% from the same period in 2013, when it was $285,000.
Idle Thoughts. Consistency is good. Surprises can be bad. In that vein, these numbers are very consistent prior months, and contain no surprises. Enjoy them while you can. They are likely to continue for a few more months. They could, however, change fairly rapidly when the Federal Reserve decides that it’s time to bump up interest rates. When that happens, even a small bump, will bring out the Chicken Littles, who will predict doom and gloom. If enough people do that, it could become a self-fulfilling prophesy.
For Realtors® with clients looking to make a move, either a purchase or a sale (which often results in another purchase), there is no time like the present. Rates are at all-time lows, and when they tick upwards in 2015, which we know they will, they will not likely fall back.
Secondly, the rate of price appreciation is not reminiscent of the bubble years. There is no need to engage in panic buying. The only negative, which we’ve seen for a year now, is the incredibly low inventory. While it might improve somewhat, as more REOs enter the market and builders become more confident, but that will not likely overnight.
[1] According to the RMLS™, “’Inventory in Months’ is calculated by dividing the Active Residential Listings at the end of the month in question by the number of closed sales for that month. This includes proposed and under construction homes.”
