While the local RMLS appreciation data indicates the Portland Metro market appreciation rate at the end of April is 11.1% - this figure can be somewhat misleading.
This figure is a comparison of 12 month moving average prices for the periods of May 2006 through April 2007 compared to the 12 month moving average prices for the periods of May 2005 through April 2006. This tends to discount the appreciation rate in the more recent months.
By using trends for the last twelve months that do not reflect current market conditions, listing price are being set too high for the current market. A seller can no longer look at what a neighbor's home sold for last year and mark his up 10-15%.
PSU Center for Real Estate data indicates the appreciation rate was 0.1% for 3rd Quarter to 4th Quarter 2006 - Still positive for the Portland Metro Market, but barely.
The Portland market saw strong appreciation in the first three quarters of 2006, but was essentially flat in the 4th quarter. If you look at the RMLS date , excluding Vancouver, the median price of a detached existing home (excludes condos and row houses) increased 6.9% in the 1st Quarter 2007 compared to 4th Quarter 2006 for Portland. New homes declined 0.3% for the same period.
Data varies for the various suburban communities and this serves to underscore why you need a seasoned REALTOR® to assist you in interpreting the market data for your neighborhood.
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