Current Market Rating: 3 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 3 1 2 3 4 5 Falling Rising

Gresham/Troudale average sale price in JULY was $266,000. YTD average sale price was $256,600.

The continued increase in new listings combined with a drop in closed sales and accepted offers lead to a significant rise in inventory in the Portland Metro area. At July's rate of closed sales (2,713), the 9,555 active residential listings at month's end would last approximately 3.5 months. The number of new listings increased 11.4% when comparing July 2006 to July 2005. However, pending sales decreased 20.9% and closed sales dropped 16.7%

APPRECIATION

Comparing the 12 months ending in July 2006 with the 12 prior, the average sale price increased 17.4% ($309,400 v. $263,500). Using the same date range, median sale price increased 18% ($260,000 v. $220,400).

AFFORDABILITY

For the first time since RMLS began recording Affordability in June 1994, a family making the area's median income made slightly less than needed to purchase the median priced home in the Portland Metro Area (97% based on a formula from NAR).

This is likely the result of a decrease in median family income ($66,900 in 2006 according to HUD), an increase in the area's median priced home ($280,000 reported in June 2006 Market Action) and a rise in interest rates (6.668% reported for the month of June 2006 by Freddie Mac). The formula assumes the buyer has 20% down payment and applies for a 30 year fixed rate mortgage.