The Real Estate Market is Weird

The S &P Case-Shiller Index, recently released for November 2011, showed a distinct and definite decline in home prices.  The S&P Case-Shiller Index looks at a 20-city "weighted average" as a gauge of the market (which also then gives us data on those individual cities).  As Portland is one of those 20 cities, we do get some interesting data and basis for comparison. As this data trails our local RMLS market data by a month, the S&P Case-Shiller Index tends to provide more context and less precision.

In any case, Portland showed a 4.8% decrease in home prices over a year ago, compared to the national decline of 3.7%.  Seattle, showed a 6.3% decrease and interestingly, Phoenix, Arizona, thought of as one of the absolute worst markets in the country, showed a 3.6% decline AND a slight increase from October to November.  hmm

Contrast this to a few local experiences; Ron Milligan, in our office, listed this three bedroom, two bath house in Sellwood on Friday.  Nice house, but not the cream of the crop.  He thought he priced it to sell, but not low by any stretch of the imagination.  This past Sunday's open house drew over 40 parties through, and by Monday he had five or more ( I haven't heard the latest) offers in his hand.

And Alexis Wolf, in our office, is about to list a condominium.  Again nice property, good value, but nothing incredible.  She has been chatting about it before it is listed and has generated quite the buzz.

And Jamie Orr, also in our office, has had this house listed for TWO YEARS.  Yes, the price has come down a lot and was probably going to come down again in the coming weeks.  Until this weekend...two offers!

I'm not denying the S&P Case-Shiller report.  At all.  But some combination of the low inventory of decent houses in Portland, combined with low interest rates and buyers tired of waiting on the sidelines  is equaling activity.

Read the most recent S&P Case-Shiller report

Sellers, we NEED good houses on the market.  If you've been waiting it out, now might be the time to get on with it and sell.  Call me if you need an updated market analysis.