The August market stats are out from RMLS, with no particular surprises.  What I see as seasonal slowing  is evident in lower pending sales; down 4.5% from July 2013, but still up 9.5% over August 2012, and lower closed sales; down 5.2% from July 2013, but up 13.5% from August 2012

Our market time got a tad longer in August; 69 days vs. 63 days for July 2013.  I attribute that slight slow down to...VACATION.  At any given time, at least half my clients were out of town, so everything took longer.   Yes, many houses are selling in their first few days on the market; houses that have it all - condition, price, location and preparation.  But with 69 days being the average, you know plenty of houses are still taking months to sell.

The median home price for the first eight months of this year up 15.2 over the same period in 2012 to $265,000..

And inventory; measured by how long, at the current rate of sales, it will take to sell all the houses on the market, has bumped along, from 2.5 months in May 2013 to 2.9 months in June 2013, 2.8 months in July 2013 and now to 3.1 months in August 2013.  Contrast this to July of 2012 with 4.6 months of inventory and July of 2011 with 7 months on inventory.

I do believe we are starting to see the increasing interest rates effect the market.  Buyers who may have started looking with rates in the high 3 percents, are now locking in rates as high as 4.99%.  That much of a jump makes a clear impact.  My trusted lender, Julee Felsman, with Equity Home Mortgage, thinks we'll be up in the fives for 2014 and that we should expect, in the long term to see rates increase about 1% per year, and level off around 7 or 8 %.  None of us have a crystal ball, but Julee is one smart gal.

If you're thinking of making a move, you might talk to a lender to see how increasing rates might play into your plans.  You can contact Julee at juleef@equityhome.com  or 503-288-9284.

Read the full report for the Portland area.