Is Portland A Buyers Market, Is Portland a Sellers Market, Is the Portland Real Estate Market Stable
People "think" . . . and when they think the Portland Real Estate market is headed in one direction, but the numbers aren't supporting that . . . they need to re-think.
Many Buyers in Portland think it's a Buyers' Market.
However, since June 2011 it's been very close to a STABLE / NEUTRAL real estate market in Portland.
The Portland Buyer's Real Estate Market
A "Buyers Market" is simple: there are more homes available for sale than buyers to purchase them.
When buyers have more homes to tour, that increases the likliehood that a buyer will find one that matches their wants / needs.
Signs of a Buyer's Market
- Inventory is high compared to previous months / years.
- More than six months of inventory is on the market.
- Comparable sale prices are LOWER than active listing prices.
- Fewer buyers are purchasing, resulting in lower closed sale numbers.
- Median sales prices are declining
Seller's Real Estate Markets
If you are a home owner who wants to sell a house in a seller's real estate market, this is the best financial market in which to sell. Why? Because there are more buyers than available houses to buy.
Signs of a Seller's Market
- Inventory is very low as compared to previous months / years.
- Less than six months of inventory is on the market.
- Comparable sale prices have closed at FULL LIST PRICE or have closed HIGHER
- More buyers are purchasing, resulting in higher closed sale numbers.
Neutral Real Estate Markets
The "neutral" or "stable" real estate markets are balanced. In a stable real estate market interest rates are affordable (which they are NOW) and the number of buyers and sellers in the marketplace are equalized.
The scales don't tip in either direction, meaning the market is normal without experiencing volatile swings.
Signs of a Neutral Market
- Inventory is normal as compared to previous normal months / years.
- Three to six months of inventory is on the market.
- Comparable sale prices are close to active listing prices.
- Sales numbers have stabilized.
- Median sales prices are flattened.
Since June 2011, the adsorption rate in the Portland Real Estate Market is hovering around 6.0, tipping a little closer to 7.0 in September. But to say this is a strong "Buyers" market in Metro Portland might be a tad wishful thinking. The market is not a Seller's market and for all intents and purposes, the Portland Metro Real Estate Market is finding equilibrium and teetering towards STABLE.
- Sellers Market: 1 to 5 months supply of homes
- Neutral / Stable Market: 5 to 6 months supply of homes
- Buyers Market: More than 6 months supply of homes
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2011 started off with a very strong buyers market in Portland real estate. But, the absorpotion rate for the past six months have been bordering neutral / stable. The Portland Real Estate market has gained an equilibrium since June 2011.
In my earlier reports:
the INVENTORY is off compared to the same months of October and November 2010. I going to try to stay current on these monthly reports and perhaps concentrate on absorption rate in the Portland real estate market to keep my finger on the pulse so Buyers don't have to. Just check out my reports!
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