Is this picture and accurate representation of our market?  The May 2012 RMLS Market Action was released yesterday and Portland Metro inventory has dropped to 4.2 months.  RMLS:

Home sale price measures were all positive in May. The median sales price rose 6.6% when comparing May 2012 with the same month in 2011 and 0.9% when comparing the first five months of 2012 to that period in 2011. This is the second consecutive month in 2012 that the median home price has risen.

The average sales price has also risen 7.2% when comparing the current month to the same month in 2011 and 1.1% over the comparable period so far this year.

The number of new listings is down compared to this time last year but there are increased sales which pushed inventory down to levels not seen since March of 2007.  There was 6.8 months of inventory this time last year.  As we’ve discussed before, the traditional break between a seller’s and buyer’s market is six months.  My feeling is that number may be closer to five months now as I think buyers are more willing to walk away than they were previously.

A couple of months of positive news isn’t enough to allow anyone to declare that we are out of the woods yet but it’s certainly a start.