The RMLS Portland Market Action report recently released for December 2014 offers insight not just to last month, but as a year-in-review. Our most recent infographic (shown below) provides a visualization of the trends of the last three years. The main theme? It’s a seller’s market so buyers need to position themselves to compete.
One of the figures that points towards this is the notable 2.3 month inventory level. That level shows that if no other homes were to enter the market, it would take 2.3 months to sell all of the current inventory. The infographic below reveals that it is the lowest in recent years. To give some context, a quick view of our past RMLS Market Action posts reveals that it goes beyond the three years shown. The last time we saw such a low inventory count was back in March of 2006 – over 8 years ago! Low inventory means added value for every seller in the market.
This RMLS Portland Market Action report also shows an increase in closed sales and a notably reduced market time from last year. This means that a reduced inventory isn’t marked by reduced transactions. Buyer’s are still looking for homes. The law of supply and demand shows that reduced supply with continuous (or increased) demand will positively influence the price to ensure an economic equilibrium.
For those considering selling their home, this winter seems to be the “perfect storm” for a solid asking price and quick market movement. The RMLS Portland Market Action report reveals the continued increase in average sales price, which combined with low inventory and all signs showing that active, serious buyers are looking puts any seller at a higher advantage. In addition, economists believe that the low interest rates we’re currently seeing will increase through 2015, and buyers know this.
For those who have been considering selling their home and either upgrading or downgrading their home, real estate experts note that now is the time to take action. Those looking to buy and sell will find a better price for their current home and reduced interest rates on their next home purchase. In some ways, now isn’t just a seller’s market; it’s a real estate market – an everyone’s market.
For buyers, the lack of inventory means the competition can be fierce for an accurately priced home. While the highest offer and cash terms is like having a straight flush, the hand can still be beat (by a royal flush). It’s important to talk to your agent [ (us 🙂 ] about the other components of your offer and how to set yourself apart from the pack.
The average sales price in Portland (Metro) was up 7.2% to $333,000 from $310,600 in 2013. That’s way down from the double digit gains (12.9%) last year but brings us closer to the historic national average of 4% appreciation. The crystal ball? If inventory stays low and rate remain at historic lows throughout the year, appreciation is going to be driven those factors. There’s some more data in last week’s post about the impact interest rates and appreciation factors can have on buying power.
*above images from freedigitalphotos.net