Does this surprise you? It's always cold in December both in the weather and the Real Estate Market. Nothing is different this year, although the weather forecasters would like to make you think so. Same storm, different terrifying name.
We have a smaller inventory again this month, according to RMLS statistics, but barely. At November's rate of sales, the inventory of 14,435 residential properties would all sell out in 8.3 months. This measure of inventory is up from November of 2006, when we measured 5.1 months of inventory. Comparing the average sales price from November of 2006 until November of 2007 we have an appreciation rate of 6.9% throughout the city. The average number of days on the market has jumped to 67 compared to 58 last month and 51 days at the end of November 2006. Again, this most likely a reflection of the normal Holiday slow down. Most people are out of town or visiting with family instead of buying or selling their home. It will be interesting to see how we start the New Year. My thought is that sales will stay level until we see a slight improvement come February and March.
SE Portland (8.3%) and N Portland (9%) are still seeing the highest appreciation rates with areas such as Hillsboro (7.5%) and Gresham (7.7%) close behind. It seems as if many other areas of the city have mostly leveled out for a bit. Areas of the city with a higher median home prices seem to cooling the most as far as appreciation is concerned. This is the old chicken and egg scenario. People looking to purchase a more expensive home in higher-priced areas are having to take a little bit longer to sell their previous home, and so the cycle perpetuates.
Be prepared, look for the opportunities that are still out there...and wear a warm jacket.
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