“Bumping along the bottom” is the latest catch-phrase I’ve heard to describe our current market conditions, but I’m feeling a bit more (cautiously) optimistic for summer ‘09. In the last month I’ve had a number of buyers enter the market and write offers after being on the fence for a couple of years. And I’m hearing the same from other brokers as well. I’ve already seen more activity in the first half of ‘09 than in the entire year of ‘08. Yes, some of this is our normal seasonal trending, but I feel that cautious confidence has returned to the market. Buyers are definitely “over it” for the most part and sellers are quickly falling in step.

Checking various sources like RMLS, Altos Research, and even Zillow, all the data is showing shyly positive month-over-month trends. Days on market and inventory both seem to be shrinking modestly, average price in most areas is either stabilizing or showing some slight increase. We are still double-digit-down (percentages) on most counts when comparing to last year, but this is the necessary “correction” that so many hyper-critical experts have been saying is necessary. To a certain degree, I have to back them up. “Affordable” housing should be described as a detached home in a good neighborhood in good condition, that can be purchased by a police officer married to a school teacher, who have two kids (thank you to Chris Matthews). I’m not sure if we are quite there yet…but we are a lot closer than we were a couple years ago. For our market to really stabilize and see modest, normal growth again, we will definitely have to see a lower rate of unemployment.

And then there are all of those foreclosure homes and short sales. They definitely factor in to all of our trending, and are fractionally responsible for the downward spiral in average pricing, even if not in closed sales but as competition to non-distressed listings. Here in Portland, we do have a fair share of distressed properties, but the bleeding has really been minimal when compared to nationwide numbers and trends. I will also say that most of the banks have got their systems figured out and are able to more quickly process distressed transactions. If you are in a position to buy, are patient and don’t mind investing a little elbow grease, there are some smokin’ hot deals to be had.

Sellers, too, should be feeling a bit more positive. With the decline in pricing slowing down and buyer confidence on the rise, it should be a bit easier to sell a home this summer. Just be realistic about pricing your home and do all that you can to present it as well as possible.

Opinions expressed in this article are the opinions of author, and not to necessarily the opinions of Meadows Group Inc.
All rights reserved on all original content, non-original content is given credit | Michelle Berry | 2009