October Residential Highlights
October’s statistics show similar patterns to September, as the number of transactions continue to drop and sale prices continue to see appreciation. The number of closed sales fell 25.5% and pending sales declined 22% However, the number of new listings dropped for the first time since February of 2006, decreasing 5.1% this month when comparing October of this year with October 2006. At the month’s rate of sales, the 15,567 active residential properties would last approximately 8.4 months.
Using the average sale prices for the twelve months that ended with October 2007 compared to the twelve months ending in October 2006, the average sale price appreciated 6.7% ($339,300 v. $318,100). Using the same formula, the median sale price also appreciated 7.3% ($287,500 v. $267,900).
When comparing the period of January 2007 through October 2007 to the same time a year ago, pending sales have decreased 13.9% and closed sales declined 11.3%. New listings, on the other hand, are up 8.8%.
After its lowest reported rate of 88% in July, affordability improved to 94% in September carried by lower interest rates and a lower median sales price. This means that a family living in the Portland Metro area making the median income ($63,800 per HUD) cannot afford to purchase a median priced home in the area ($283,500 in September). According to the NAR formula, a median income family can only afford 94% of a monthly mortgage payment with 20% down and a 30-year fixed rate (6.38%, according to Freddie Mac). For more information, see graph and notes on last page.
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