Rather than trying to look back at 2009 in a single post, I’ve decide to break it into parts as there are so many components and not all of the data is out yet. No two people have the same views or situation when it comes to real estate. For some, it was a great year and a great time to buy. Others lost money and or their homes. When it comes to dollars, real estate is rarely win/win. [Cue the ad here for upcoming posts on why dual agency should not be legal].
Issued building permits through October declined across the country with Portland and other Oregon markets fairing worse than the national and regional averages (graph below). That may have helped inventory levels drop as fewer new homes were built and therefore not competing with resale properties.
RMLS Portland Metro inventory started 2009 at 19.2 months and had dropped to 7.1 by the end of November. We saw numerous properties sell towards the end of the year with multiple offers that weren’t short sales (including our NW Ryan listing which (yes, finally) sold at the end of November). In previous eras, six months of inventory was considered a balanced and healthy market (seller’s market below six months and buyer’s above). I think that may shift down with buyers maintaining the upper-hand into five months or less of inventory. Total market time for a listing through November was 141 days. That’s about 20 days longer than August 2008 when the method of calculating days on market changed.
|All data in thousands|
|Source: Bureau of Census. Percent changes are computed from unrounded data.|
|Prepared by Economics Department, NAHB.|
|Available at www.HousingEconomics.com.|