The February 2012 S&P/Case-Shiller Home Price Indices, released Tuesday morning, reported mixed results in the twenty largest U.S. cities. The 20-City Composite, which includes Portland, was down 0.8% from January 2012 and down 3.5% from February 2011. Though the change was small, it represented a new low since the housing peak.

According to Case-Shiller, Portland was down 0.3% from January and down 3.0% from February 2011. This differs from the February 2012 RMLS Market Action Report which stated that in Portland the average sale price increased 4.3% in February 2012 compared to February 2011, while the median sale price fell 1.3%. Part of the difference is in the methodologies used in each report. The RMLS report uses simple averages and medians, so that the results are effected by the mix of homes sold in a month. For instance, 15 homes sold above $1 million in February 2012, compared to 6 in February 2011, raising the average regardless of whether those particular homes gained or lost value. Case-Shiller, on the other hand, measures same-home resales, i.e., what a home sold for in the past vs now indicates the value change between two dates, and when combined with thousands of such measurements gives overall trends. It, too, has its shortcomings.

The major California cities were down between 3.9% and 5.2% in February 2012 from February 2011.

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Yesterday’s release of the April RMLS Market Action Report reported March 2012 Portland closed home sales increased 34.2% over February 2012 (1,262 to 1,694) and 4.9% over March 2011 (1,615 to 1,694). There were more closed sales in the first three months of 2012 than in any first quarter since 2007.

New listings rose 15.8% over February 2012 (2,492 to 2,886), but were down 5.6% from March 2011 (3,056 to 2,886)

The combination of fewer new listings and more closed sales contributed to the lowest unsold inventory since June 2007. At the March rate of sales it would take just 5.0 months to sell all 8,391 homes on the market in Portland.

 
The March 2012 Portland median sale price rose 2.2% over February 2012 ($211,000 to $215,700) and 0.3% over March 2011 ($215,000 to $215,700). Comparing first quarter 2012 to first quarter 2011, the median sale price decreased 1.4% ($215,000 to $212,000).

April looks promising as well. March 2012 accepted offers increased 7.7% over February 2012 (2,109 to 2,272) and were 12.8% more than March 2011 (2,014 to 2,272).
 

Who do you know that is interested in buying a home or rental property?

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email us at ClientCare@PortlandHomeTeam.com.

We’d love to help!

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We already know that Portland is the greatest city in the world, so when outsiders recognize it as well, we can’t help but feel proud. With all the notoriety our beloved city is gaining from the IFC show “Portlandia”, is it any wonder that Sunday’s issue of The Huffington Post featured an article entitled “10 Things We Love About Portland, Oregon”?

George Hobica of Post writes: “Remember how Seattle used to be the cool town and Portland was that little thing you sort of just breezed through? Well, Portland’s the one everyone’s paying attention to now, and you can still breeze through it.”

Among the favorable factors mentioned: our infamous food carts, Portland Saturday Market, local brews, unlimited biking opportunity, and gorgeous scenery. Specific name dropping included VooDoo Donuts, Stumptown Coffee, and Deschutes Brewery.

Hobica details the compelling reasons to visit Portland under the following headings and links to great web resources for each (you’ll have to click through to the article to get those):

#1 It’s exactly what you think.

#2 The city has an amazing arboretum.

#3 Emerging artists.

#4 Distillery Row.

#5 Local brews.

#6 Gorge-ous scenery.

#7 A coffee maven’s haven.

#8 Culinary treats.

#9 And save room for dessert.

#10 A peddler’s paradise.

None of this is news to us, but the article reinforces why we love this city so much. So go to Multnomah Falls, try out a new food cart, drink locally brewed beer this weekend, and take advantage of this fantastic city we live in.

2011-12 Remodeling Cost vs. Value Report

Each year the National Association of Realtors puts out a report on the cost of common remodeling projects and how much they add to the value of a typical home. The following is a list of the estimates for the Portland area published in December, 2011:

The construction cost data comes from HomeTech Information Systems, a remodeling estimating software company, and is adjusted for regional pricing variations. The added value estimates are based on sampled NAR members’ professional judgment, not actual sales. ©2011 Hanley Wood, LLC. Reproduced by permission. Complete city data from the Remodeling 2011-12 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

Call us (503.222.4300) or email us (ClientCare@PortlandHomeTeam.com) to discuss your remodeling plans.

March 2012 Housing Market Update

Opportunities in the housing market continue to grow for buyers and sellers. Home affordability, driven mostly by record low interest rates, is among the lowest it has ever been. According to the National Association of Realtors, and based on national averages, the payments on a home today represent 12.8% of the median household income. Home owners should start to see prices stabilize and begin to grow, presenting more favorable opportunities for those looking to sell their homes.

This Month in Real Estate (US) March 2012

Interest Rates

The most powerful indicator of home affordability, interest rates on mortgage loans, was down again in January. The national average for a 30-year fixed mortgage was 3.92%, down 0.04% from the month before, and down nearly an entire percentage point (0.84%) from a year ago. These historically low rates, coupled with today’s home prices, represent an incredible opportunity for home buyers.

Home Sales

Home sales were up 4.3% in January from December 2011 to 4.57 million (seasonally adjusted), and this is up from 0.7% from the year before. The steady increase in home sales over the last few months is positive encouragement for a continued housing recovery.

Home Prices

Adding to home affordability in January, the median home price was down 2% from a year ago, to $154,700. While prices are still declining, foreclosed and other distressed properties, which have been putting downward pressure on home prices, are being moved more efficiently off the market, and default rates on home mortgage payments for the past three years are among the lowest in history.

Inventory

As sales increase with a growing demand for homes, the inventory of properties for sale fell 0.4% to 2.31 million, or a 6.1-month supply at the current sales level. This is down from a 6.4-month supply in December 2011. Historically, a 6-month supply has meant that the housing sector is balanced–favoring neither buyers’ nor sellers’.

Source: National Association of Realtors