2011 VS. 2010

• In 2011, there was 4% more Closed sales and 6% more Pending Sales in 2010. New listings fell 25.4%.
• Total Sales Volume for 2011 was about $5.2 billion down from $5.3 billion in 2010. So more sold in 2011 but at a lower price point than in 2010.
• Average sales prices dropped 6.7% compared to 2010 and the median price fell 7.9%.

December ’11 vs. November ’11

• 10.3% increase from Closed Sales
• 19.3% increase from Pending Sales
• 11.7% decrease in New Listings
• Leaving us with a record low of 5.3 months of inventory, down from 6.2 months

We end the year with West Portland and SE Portland have the highest inventory as well as the most Closings in December.

N Portland has the shortest marking time of 90 days. Though the average marketing time for the past 3 years was very comparable in December which was around the 140 day mark.

You can see from the RMLS December Market Action Report for Total Active Listings that we have a substantial drop in listings on the market for the full year of 2011 but a huge drop in December. This makes the market more competitive for the homes that are on the market. The buyers have less homes to choose from and the good homes we have seen get multiple offers. Less homes on the market makes it more of a seller’s market even though the prices are low and have declined from last year.

The RMLS Average Sales Price picture average prices over the last 10 years. The orange line is drawn from our ending point in December back to the point it meets in April ’05. We also see a low dip in average sales price in the spring last year. This picture easily depicts the ‘bubble’ in the market and why if you bought in the years of ’05 to the peak in ’08 and are now trying to sell your home that the equity has depreciated and many sellers will either have to be bringing money to the table or looking into other options such as a short sale.

The rapid decline has slowed and we are seeing more little ups and downs in regards to pricing. The deep slope from ’08 to ’10 has leveled out some and be interesting to watch 2011.

These reports suggest that while prices remain soft, we are seeing some hints of possible improvement.

We have one more month of market activity of December to come out and we can get a fuller picture of what has happened in the Portland Real Estate Market as a whole in 2011. 

As for November though:

Inventory has dropped again to a low of 6.2 months. This is the 2nd lowest it has been in the past 3 years. What does this mean? Means that either less homes are being put on the market and/or more homes are selling. So which is it for November? Closed sales were up! We had an increase in closed sales from October to November by 3.2% and from year to year closed sales were up 18.9%. Leaving new listings on the market falling 16.7% month to month comparison (Oct ’11-Nov ’11.) 

A decrease in inventory is typical historically speaking in the month of December so it won’t be surprising if we see another month of very low inventory in next months report. Inventory typically rises in January after the holiday season is gone and buyers and ready to get back out in the market for searching. 

How about your area??

Some area specific stats:

Most New Listings on the market in November:

1. SE Portland – 259
2. West Portland – 187
3. Beaverton/Aloha – 184

Most Active Listings on the market (in order):

1. West Portland -1,084
2. SE Portland – 891
3. Milwaukie/Clackamas – 845
4. Tigard/Wilsonville – 799

Fewest Listings on the market in November goes to North Portland with 336.

Most Closed in November:

1. SE Portland – 205
2. West Portland – 158
3. Beaverton/Aloha & Tigard/ Wilsonville tied with – 152

Area with Shortest Market TIme:

1. NE Portland – 108 days
2. N Portland – 110 days
3. SE Portland – 124 days

West Portland and SE Portland are seeing the most activity in the market. They have the most amount of listings coming on the market and the most selling. The good news is that all the Portland Metro areas have an increase in pending % from last year. Things are selling once they are on the market.

Average Sales Price % Change is showing a decrease this year from last. Ranging from – 3.3% (Lake Oswego ) to the highest at -11.6%( Beaverton/Aloha.) This% change is a comparison of the rolling average sales price for the last 12 months 12/1/10-11/30/11 with the 12 months before 12/1/09-11/30/10.

If you would like more information about what is going on specifically in your neighborhood, please email me at Rene@Windermere.com.

When you go check it out, you will want to try out the salmon sandwich on their pretzel bread (perfectly made so you don’t have to add a thing), the almond cookie (best cookie with the perfect amount of sweet and salty), and pistachio macaroon (all of the macaroons are good but this is my favorite.).  It it is on 10th and Flanders.

See the article written by Neighborhood Notes.

Comparing August 2011 to September of 2011

• Slight rise in Inventory up to 6.7 from 6.2 months (10,666 homes on the market)
• Closed sales decreased -12.1%
• Pending sales are down -14.9%
• New listings fell -13.1%
• Sales price activity was mixed with average sale price falling -1.3%, while median sale price increased 2.6%
• Comparing September 2010 to September 2011: Average sales price declined 4.2%

Area 148 (West Portland, Raleigh Hills):

• New homes on the market – 5
• Pending – 7
• Sold – 13
• Price Change- 6
• Expired – 48

Area 141 (North Portland):

• New – 7
• Pending – 2
• Sold – 3
• Price Change – 2
• Expried – 7

Area 142 (Northeast Portland):

• New – 11
• Pending – 5
• Sold – 6
• Price Change – 9
• Expired- 28

Area 143 (Southeast Portland):

• New -14
• Pending – 11
• Sold- 5
• Price Change – 16
• Expired – 39

The following are my personal highlights from the NAR  report on 5 different subjects.

Characteristics of Home Buyers

• 50% of recent home buyers were first time buyers, up from 47% in 2009.
• The typical age of the first-time home buyer was 30 years old. The typical home buer was 39 years old.
• 20% of recent home buyers were single females (15% in 2001) and 12% were single males( 7% in 2001.
• Of the first-time home buyers, married couple represent 48% of them.

Here are the recaps:

Inventory down from last month: 6.2 from 7.0. This is the second lowest inventory we have had all year and the lowest we have had, otherwise, since at least January of ‘09.

August Residential Highlights:

From year to year, closed sales are up 30.7% Pending were up 29.6% and new listings dropped 24.8%. Average sales prices from last August declined 9.2%, median fell 10%.

From month to month, from July 2011 to August 2011, closed sales increased 5.6% and new listings went down 2.1%. Sales price fell slightly down 1.2% while median sale price decreased 1% ($227,200 to $225,000).

There are 11,276 active residential listings currently on the market.

Recap:

We are still seeing more activity in 2011 than in 2010. Sales prices have declined since last year and from last month we still see a decline in price. Different from the month of July when compared to the month of June we saw a slight increase in average sales price of 3%.

What are these? There are 17 articles and various Standards of Practice. These Standards are restrictive and strictly enforced, than those who simple hold a real estate license. Below are the articles paraphrased. The full Code of Ethics and Standard of Practice of the National Association of Realtors can be found here. 

1. Pledge to protect and promote the interest of their client. To put the clients interest ahead of their own and to treat all parties honestly and fairly. 
2. Shall avoid exaggeration, misrepresentation or concealment of pertinent facts relating to the property or transaction. REALTORS shall not be obligated to discover latent defects in the property or advise on matters outside the scope of their license.
3. Shall cooperate with other brokers/agents when it is in the best interest of the client to do so. 
4. Have a duty to disclose to the owner or owner’s agent their true position if they are represent themselves, immediate family members, their firms or any member there of, in a real estate transaction.
5. Shall not provide professional services in a transaction where the agent has a present or contemplated interest with out disclosing that interest. 
6. Shall not collect any commission, rebate or profit on expenditures made for their client without the client’s knowledge. If a REALTOR makes a recommendation or referral to another service and may receive financial benefit or fees, they must disclose to their client.
7. Shall not accept compensation from more than one party, with out disclosure to all parities and the informed consent of the REALTOR’s client/s.
8. Shall not co-mingle client funds with their own. 
9. Shall attempt to ensure that all written documents are written in clear and understandable language and will provide each party a copy of what they sign. 
10. Shall not discriminate in any fashion for any reason on the basis or race, color , religion, sex, handicap, familial status, or national origin. 
11. Expects agents to conform to standards of practice and
    be competent in the specific real estate disciplines in which they engage.  REALTORS shall not provide services that are outside their field of competence.
12. Shall be honest and truthful in their real estate communications and present a true picture in their advertising, marketing and other representation.
13. Shall not practice law unless they are a lawyer. 
14. Shall cooperate if charges are brought against them and present all evidence or pertinent facts requested and shall take not action to disrupt or obstruct such process.
15. Shall not knowingly or recklessly make false or misleading statements about competitors, their businesses or practices. 
16. Shall not solicit another REALTOR’S client nor interfere in a contractual relationship. 
17. Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system. 

While there is no guarantee that all REALTORS^{® are morally and ethically better than unaffiliated real estate agents, it is an attempt by the industry to regulate and impose obligation beyond those of ordinary commerce. REALTORS® have a common responsibility to maintain and improve the standards of their fellow REALTORS®.} 

I am your constant companion. 

I am your greatest helper or your heaviest burden. 

I will push you onward or drag you down to failure. 

I am completely at your command. 

Half the things you do, you might just as well turn over to me, 

and I will be able to do them quickly and correctly. 

I am easily managed; you must merely be firm with me. 

Show me exactly how you want something down, and after a few lessons I will do it automatically. 

I am the servant of all men. 

and , alas, of all failures as well. 

Those who are great, I have made great. 

Those who are failures, I have made failures. 

I am not a  machine, though I work with all the precision of a machine. 

Plus, the intelligence of a man. 

You may run me for profit, or run me for ruin; it makes no difference to me. 

Take me, train me, be firm with me and I will put the world at your feet. 

Be easy with me, and I will destroy you. 

Who am I???  I am a Habit. 

- Mastery by Stewart Emery

Read the whole article here at Canton Daily Ledger