July 2009 home sales that closed were stronger. July 2009 closed sales had increased over July 2008 by a large margin of 8.6%. Same-month closed home sales had not increased since April 2007. Pending sales grew by 8.3% while new listings dropped by 25.4%
Compared to June 2009, closed home sales were up 11.9% and pending sales were barely higher by 0.3%. New listings dropped from June 2009 by 8.2%. From January to May 2009, they had increased. Active inventory, which is calculated by dividing the total number of active listings for a month and dividing it by the number of closed sales, has decreased for its sixth consecutive month to 7.3 months. Active inventory was at 10 months in July 2008. Inventory is falling at a time when it normally increases during the normal real estate business cycle. This can be explained by more homes being sold at the same time that fewer homes are being listed. Meanwhile, the total number of homes on the market remains about the same.
Sale price indicators went in opposite directions last month compared to June 2009. The average sale price was down 3.7% versus June, but the median sales price was up by 0.04%. In my last brief, I reported that sale price indicators did just the opposite when the average sale price was up 2.9% versus May, but the median sales price was down 0.04%. I believe this indicates that there has been more second time home buyer activity pushing up the median closing price while even more first time home buyers continue to take advantage of the $8,000 federal tax credit.
This trend continues to show that the outlook for buyers is still good, especially considering interest rates and the first time home buyers credit. With fewer new listings available, properties that have been sitting on the market are looking more attractive to new buyers as they appear to be selling at lower average prices. The outlook for sellers, especially of those desiring to sell their first home and upgrade to a more expensive property, continues to be optimistic. Demand is up for first homes but has not increased for more expensive properties. This market improvement should continue to push more first time home owners into the market, which would help increase active inventory and sales activity.

Would you like to receive more detailed information about?
• Your neighborhood or neighborhood of interest?
• The first time home buyer’s tax credit?
• Realtor services?

Please contact me at:

dannyshepard@oregonfirst.com
www.dannyleeshepard.com
503-267-8370

All statistics listed are quoted from the July 2009 issue of RMLS Market Action. The Regional Multiple Listing Service releases the previous month’s statistics no earlier than the 15th of the current month.

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