Portland Metro February Market update

Portland Metro Review

NORTH PORTLAND ----
Previous Month's Average Sales Price: $264,600.
Year-to-Date Average Sales Price & Appreciation: $261,800, 15.9%.

NORTHEAST PORTLAND ----
Previous Month's Average Sales Price: $319,300.
Year-to-Date Average Sales Price & Appreciation: $301,600, 13.3%.

SOUTHEAST PORTLAND ----
Previous Month's Average Sales Price: $271,100.
Year-to-Date Average Sales Price & Appreciation: $265,700, 14.5%.

WEST PORTLAND ----
Previous Month's Average Sales Price: $419,700.
Year-to-Date Average Sales Price & Appreciation: $405,300, 7.0%.

TIGARD, TUALATIN, SHERWOOD ----
Previous Month's Average Sales Price: $385,600.
Year-to-Date Average Sales Price & Appreciation: $378,600 8.0%.

BEAVERTON ----
Previous Month's Average Sales Price: $285,300
Year-to-Date Average Sales Price & Appreciation: $281,400, 11.2%.

February 2007 seems to follow the same trend we've seen for the last few months with new listings up and pending and closed sales down. However, pending only dipped slightly when compared to the same time last year. Further inventory is down compared to last month. The 9,901 active residential listings at the end of February would last approximately 5.2 months at the month's rate of sales. When compared with the month of February 2007, the number of new listings increased 22.3%. Closed sales decreased 6.8% and pending sales fell 0.4%.

Year to Date

When comparing market activity for January-February 2007 to the same time in 2006 we see that the number of new listings are up 18.9%. On the other hand the number of closed sales decreased 7.9%. Pending sales were also down a slight 1.3%.

Appreciation

To calculate sale price appreciation, the average and median sale prices for the twelve months that ended with February 2007 are compared to the prices for the twelve months ending in February 2006. Using those time periods, the average sale price appreciated 12.8% ($325,100 v. $288,300). Using the same date range to compare median sale price we see a 13.6% appreciation rate ($274,900 v. $241,900).



*The information above is from the monthly market action report produced by RMLS and used by permission of RMLS. This information is copyrighted by RMLS, All Rights Reserved.

New Single Family Home Characteristics

Does it seem like homes continually get bigger and bigger with each new development? Well that perception is real. According to research by the National Association of Home Builders, American homes are getting bigger and better.

• Average finished area (sq.ft.)
• 1950 - 983 sqft
• 1970 - 1,500 sqft
• 1990 - 2,080 sqft
• 2004 - 2,349 sqft

• Two stories or more
• 1950 - 14 percent
• 1970 - 17 percent
• 1990 - 49 percent
• 2004 - 52 percent

• Number of bedrooms
• 2 or less
• 1950 - 66%
• 1970 - 13%
• 1990 - 15%
• 2004 - 11%
• 3 BRs

• 1950 - 33%
• 1970 - 63%
• 1990 - 57%
• 2004 - 51%
• 4 BRs
• 1950 - 1%
• 1970 - 24%
• 1990 - 29%
• 2004 - 37%

• Number of bathrooms
• 1.5 or less
• 1950 - 96%
• 1970 - 52%
• 1990 - 13%
• 2004 - 5%
• 2 BAs
• 1950 - 3%
• 1970 - 32%
• 1990 - 42%
• 2004 - 39%
• 3 or more
• 1950 -----
• 1970 -----
• 1990 - 18%
• 2004 - 24%

Source: National Association of Home Builders, Housing Facts, Figures and Trends, March 2006

More information about Portland Metro can be found at our website: www.TonyandLibby.com

And please feel free to leave comments on the articles we write.

Existing Home Sales Rose in January - 2 yr High

According to an MSNBC article this morning, Sales of existing homes rose in January by the largest amount in two years. Does this mean the national housing slump is over?

The National Association of Realtors reported Tuesday that sales of previously owned homes rose by 3 percent last month, the biggest one-month increase since a 3.3 percent increase in January 2005, a time when housing was roaring toward the peak of its five-year boom.

According to the article on MSNBC, the median price of an existing home sold in January dropped to $210,600, a decline of 3.1 percent from a year ago. The January decline was the third-biggest drop in history.

Analysts said that the decline in prices was actually an encouraging sign that home sellers are starting to adjust their asking-price down and this should help speed the correction in housing.

More good news: sales rose the most in the West, up 5.6 percent, followed by gains of 4.8 percent in the Midwest and 2 percent in the South.

Airdate for our HGTV House Hunters Episode

After a long wait we finally have an airdate for our HGTV HouseHunters episode featuring the Tony and Libby Kelly Group! We shot this episode in the fall of 2005. Hopefully you're going to love it!

• March 8th - 10pm ET/PT




• March 9th - 2am ET/PT




• March 11th - 7:30pm ET/PT




• Check out the link here:http://www.hgtv.com/hgtv/shows_hnt/episode/0,1806,HGTV_3855_47921,00.html

January RMLS Market Conditions Reports

January 2007 seems to follow the same trend as the previous months in 2006, with new listings up and closed and pending sales both down. When compared with with the month of January 2006, the number of new listings increased 19.5%. Closed sales decreased 9.4% and pending sales fell 2.2%. The 9,841 active residential listings at month's end would last approximately 6.2 months given the month's rate of sales.

Portland Metro Review

NORTH PORTLAND ----
Previous Month's Average Sales Price: $255,800.
Year-to-Date Average Sales Price & Appreciation: $255,800, 16.4%.
NORTHEAST PORTLAND ----
Previous Month's Average Sales Price: $284,200.
Year-to-Date Average Sales Price & Appreciation: $284,200, 14.4%.
SOUTHEAST PORTLAND ----
Previous Month's Average Sales Price: $261,800.
Year-to-Date Average Sales Price & Appreciation: $261,800, 16.2%.

WEST PORTLAND ----
Previous Month's Average Sales Price: $390,800.
Year-to-Date Average Sales Price & Appreciation: $390,800, 8.9%.


New Construction in 2006

The sale of properties listed as proposed, under construction, or new construction fell 7% (5,045 v. 5,407) when comparing 2006 and 2005. However, the average sale price appreciated 16% ($365,600 v. $315,200). Median sale price also increased 16% ($300,000 v. $259,000).

Affordability

According to the formula used by NAR, the average Portland family household had 105% of the income needed to purchase the median price home ($273,500) in the greater metro area in December. A family making the median annual income ($66,900) would pay $1331.58 a month for this home with a 20% down payment and a 30-year fixed-rate mortgage with an interest rate of 6.14% (per Freddie Mac).

PLEASE CHECK OUT OUR MONTHLY PODCAST the right for more real estate information

*The information above is from the monthly market action report produced by RMLS and used by permission of RMLS. This information is copyrighted by RMLS, All Rights Reserved.

Values fell in 73 metro areas, but NOT Portland

Homes prices are likely to spring back in the coming months according to the National Association of Realtors. The 16 Feb, 07 edition of USA Today reported that nationwide median home prices fell in 73 metro areas in the final three months of 2006. "At least the bottom appears to have already occured," says Lawrence Yun, an NAR economist.

The good news for Portland metro is that despite the nationwide housing malaise in 2006 (2.7% decline in the median home price), Portland still saw a 11.2% increase! Click here to see the list of the median home prices in 149 metro areas.

We have noticed a significant increase in market activity in 2007. This is partly due to buyers responding to price drops and pent-up demand as a result of buyer hesitation in the second half of 2006.

Our New Tram gets National Exposure

The new $57 million tram that connects OHSU with the South Waterfront was highlighted in the Feb. 3rd edition of USAToday.

The tram was built as part of a plan to develop the South Waterfront, which is drawing some $2 billion in private investment. The Tram connection between OHSU, which had run out of room on the hill, and the expanding Waterfront is expected to reduce driving by 2 million miles a year, saving 93,000 gallons of gas by tram riders who avoid the twisty road up to the hospital.

The article goes on to give props to Portland for "its impressive array of alternative forms of transportation, including streetcars, a light rail system and miles and miles of bike paths."

Nice to receive national recognition for our beautiful city and efforts to give people alternatives to driving. The tram has been ferrying hospital employees and patients since mid-December, and opened to the general public in late January. If you have had a chance to ride the tram, please leave a comment to share your thoughts.