Thursday, June 12, 2008

Portland RMLS Market Action Report – May 2008

The Regional Multiple Listing Service released the Market Action Report this week and the median sale price for May 2008 was $275,000 this is a 3.2% decrease from the median sale price for May 2007.
The Portland residential real estate market peaked in August 2007 with a median sale price of $300,000. Prices have now fallen 4.2% from that peak.
Months of supply (total inventory/monthly sales) sits at 9.2 months compared to the 4.5 months of supply for the same month last year. A balanced market has about 7 months of supply.
The first graph compares the median and average sale price with the months of supply. Click on any graph for a sharper image.

The second graph shows the total supply of homes available for sale. This is simply a calculation of the months closed sales multiplied by the months of supply. There are currently 17,140 homes for sale; this is an increase of 36% from the same month the year before.

The third chart shows closed sales by month. Closed sales fell 34% from the same month the year before.

The fourth chart shows new listings by month. New listings decreased by 12% from the same month the year before.
The final graph shows how affordable the median priced home is for a family of four. History indicates the ratio is usually between 2.5 and 3.0. Prices would have to fall 33% from the current median for the index to reach a ratio of 3.0.