January Residential Highlights
Market activity appears to have slowed when comparing January 2008 with the same month in 2007. New listings jumped 11.9% compared to last January, but closed sales dropped 31.9% and pending sales fell 34.3% While an increase in new listings in January is common, a substantial drop in closed sales helped compound the inventory rate as the 13,904 active residential listings would last approximately 12.8 months at January’s rate of sales. This is the highest recorded level since the previous high of 10.1 in January 2000.
New Construction in 2007
The sale of properties listed as proposed, under construction or new construction increased 6% (5,370 v. 5,045) when comparing 2007 and 2006. The average sale price appreciated 6% ($387,200 v. $365,600) and the median sale price grew 6% ($318,600 v. $300,000).
According to a formula used by NAR, the average Portland family household only had 99% of the income needed to purchase a median priced home ($276,500) in the Portland metro area in December. A family making the median annual income ($63,800 according to
HUD) would pay $1,340.46 a month for this home with a 20% down payment and a 30-year fixed-rate mortgage with an interest rate of 6.1% (per Freddie Mac).