Prices Down Unlucky 13% In Portland

Portland home prices are down 13 percent, according to the latest RMLS Market Action report which reflects May 2009 activity.

The RMLS says that the average home price is down 13% from an average of $335,000 in May 2008 to an average $291,400 in May 2009.

The same report shows that the median sales price is also down 13% from a median of $287,500 in May 2008 to a median $250,000 in May 2009.

Overall, closed sales are down roughly 23% from a year ago, while new listings have dropped 25%. The large drop in new listings suggests that some home owners who would like to sell are staying out of this buyer’s market. Of note, May activity was stronger than April activity in the Portland real estate market with increased sales and listings.

Regarding this buyer’s market, housing inventory shrunk a tad in May to a level of 10.2 months- meaning that if no other properties were listed for sale, it would take 10.2 months for the supply to dry up. The 10.2 months of inventory in May is down from April’s 11-month level and represents the fourth straight month inventory has decreased. It’s also the lowest inventory level in Portland since August 2008 (9.9). Still, a balanced market between buyers and sellers if 5.0 months of inventory. In other words, the market heavily favors buyers.

The total market time or average market time for a Portland area home to sell is currently 147 days.