September Market News
Filed Under For Buyers, For Sellers, Home Owners, Investors, Landlords, Uncategorized · Tagged: first time landlord, For Landlords, home buying, homes home sales, landlord, landlord study hall, portland oregon, real estate, real estate market, real estate portland, real estate portland oregon, real estate trends
September Market News
The number of homes for sale at the end of September left us with 7.6 months of “inventory.” This means it would take 7.6 months to sell all homes on the market.
There is word of a “shadow market,” (houses that banks have foreclosed on and will be throwing on to the market) as we move through winter. If this happens, expect home sales to slow (more glut) when mixed with the typical holiday slow down.
The 1st time home buyer tax credit had a favorable impact on market activity, and crunch time is on for buyers to cash in. Lenders have their buyer’s in process now and the home has to be pending in order to meet that November 30th deadline. Many working to beat the date may not make it.
Pending sales jumped 34.1% and closed sales rose 9.8% when compared to September 2008. New listings fell 14.3%. Comparing the third quarter of this year with the same period in 2008, pending sales were up 17.5% and closed sales rose 6.5%. New listings dropped 18.7%.
The average sale price for September 2009 was down 8% when compared to September 2008, while the median price declined 9.6%.
Economics continue to impact home sales. The state unemployment rate is now at 11.7%, not adjusting for those who have left the job search, or who have taken part time work. We continue to be one of the worst states for unemployment. Until this trend declines, which is expected in 2nd or 3rd quarter 2010, the market will remain soft and we will see continued decline or leveling of home values.
There are three theories being discussed by economists both locally and nationally. The question at hand is: what sort of recovery will we have? Will it be U shaped, V shaped, or W shaped, with the influx of stimulus money creating a false bottom, from which we shall drop to another bounce off the bottom before beginning a solid recovery.
My vote is that we are experiencing a W rebound, in which more financial trouble is yet to come. My planning does not include appreciation or definite leveling of market conditions for the next 12 months, to be safe.
This is a phenomenal time to buy given historic interest rate lows, depressed pricing, and great loan opportunities. Add to this our plethora of housing choices and you have a win for buyers.
Statistics thanks to RMLS. For more on real estate trends or economic data, email me at kathryn@kjkproperties.com or call 503-997-9035.
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