Friday, April 23, 2010

Portland RMLS Market Action Report – March 2010

The Regional Multiple Listing Service released the Market Action Report this week and the median sale price for March 2010 was $238,900; this is a 3% decrease from the median sale price for March 2009.

The Portland residential real estate market peaked in August 2007 with a median sale price of $302,000. Prices have now fallen 21% from that peak.

Months of supply (total inventory/monthly sales) sits at 7.8 months compared to the 12.0 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 closed sales for the month multiplied by the months of supply. There are currently 14,032 homes for sale; this is a decrease of 1% from the same month the year before.

The third chart shows closed sales by month. There were 1,799 closed sales during the month; an increase of 52% from the same month the year before.

The fourth chart shows new listings by month. There were 4,987 new listings during the month; an increase of 35.3% 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 12.1% from the current median for the ratio to reach 3.0.

Sales were extremely high in March and the pending sales data indicates April will be another solid month. Most likely the big increase is due to the expanded/extended home buyers credit which expires at the end of April.
June, July and August are traditional high volume months. With no tax credit to stimulate sales we will see if the spring bump falls flat.