Thursday, April 16, 2015

Exactly what does "low inventory" mean?

RMLS released the March numbers earlier this week, showing a fast paced market with very low inventory.  At our current rate of sales, it would only take 1.9 months to sell the current inventory.  That's quick!  2013 and 2014 were very healthy markets, with inventory never dipping below 2 months, and often over 3 months.

These numbers are for the Portland metro region, which includes not only the City of Portland, but the tri-county area, Columbia and Yamhill counties.

In general, the close-in market tends to be hottest, so I took a specific look at inventory in the close in zip codes.  These numbers are for 9:45 am today, April 16th, detached, houses listed on the RMLS.  Here is what I found.

Zip Code
# of houses
Avg. price
Willamette River to SE 42nd and Portland’s southern boundary to SE Division
Willamette River to SE 42nd and SE Division to E. Burnside
SE 42nd to SE 82nd and SE Division to E, Burnside
N Williams to NE 42nd and E Burnside to NE Broadway
N Williams to NE 42nd and NE Broadway to NE Mason

For some perspective;  in those same zip codes, a three bedroom, two bath home would cost and average of $574,200 and would have 2483 total square feet, with only 1620 of those square feet being above ground. 

So, where are the more affordable areas these days?  If you get out of the urban core, and outside the City of Portland, some lower prices and better selection can be found.  The more flexible you are about age and style of home, the better values you'll find.  Buyers willing to compromise where others may not, will have better luck finding a house.

Getting an offer accepted is a whole different beast.  A good agent, strong pre-approval letter from a reputable local lender, strong down payment, flexible closing and possession dates are some of the aspects that can help your offer get accepted. 

Clearly, if you've been thinking if selling, NOW is the time.  If you're in the market to buy, be patient, keep your chin up and work closely with your agent.  Either way, get in touch and I'll be glad to help you consider your options and map a plan.