July 2013 Case-Shiller Home Price Report

30 07 2013

Another Report Breaking Records

“Home prices continue to strengthen,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Two cities set new highs, surpassing their pre-crisis levels and five cities – Atlanta, Chicago, San Diego, San Francisco and Seattle – posted monthly gains of over three percent, also a first time event.”

This is pretty big news– to gain on a monthly basis over 3 percentage points. It appears to be approaching frenzy in a few states this summer. Blitzer did not mention the two cities which set new pre-crisis highs.

The gain for the 10-city and 20-city composite was also significant at 2.5% and 2.4%.

Though the 20-City and 10-City composites appear to be at spring 2004 levels, Portland is at July 2005 levels with a figure of 151.91. It is also sitting nicely in the middle of the pack with a yearly gain of 12.5%.

People are wondering whether or not another bubble is being witnessed as well. David Blitzer mentioned a few months ago that we shouldn’t be concerned about a bubble until we see gains in the 20-30% range. Well, we have 4 in that category and 2 near 20%. There is no true way to predict the future. Many still unpublicized are cautious. In fact, I have seen a number of factors in the rental markets which reflect a move away from home buying to stay mobile and possibly steer clear of home ownership as a solid future investment.

It is hard to discern either way…this is only speculation as prices continue to increase monthly.

Frenzy

 

The full report here July 30, 2013 CS

–Dustin Miller
Broker / Market Analyst

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July 2013 RMLS Market Action

13 07 2013
It is o.k.

It is o.k.

Time for a break. Take a breath and exhale slowly. That is what the market did too this past month. It has been 3 years, 2010 since the Portland Market Inventory has actually increased between May and June.

Market time is still climbing downward at a decent pace. It fell 38.4% from last year and 17.6% from last month. This figure is getting closer to winter 2007, December 2007 had 73 days on the market average time.

Interest rates going up, 4.5% today on average for a 30-year loan, has definitely changed a few buyers’ earning power. The .5% costs about $90 a month more for a $300,000 home or takes a $300,000 home search down to $260,000-$270,000.

Compared to Last Year
Inventory up to 2.9 months.
Closed sales up 11.9%.
Pending sales up 15.2%
New listings up 16.9%.
Average Sales Price up 10.5%
Median Sales Price 12.4%

Compared to Last Month
Closed sales down 6.4%
Pending sales down 5.8%
New listings down 2.1%
Average Sales Price down 0.9%
Median Sales Price up 0.9%

Don’t make any rush decisions quite yet, the summer is young.

Step away from the edge.

View The Full Report July 2013 RMLS Market Action

Dustin Miller
Broker/Market Analyst