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Jody Patton's MARKET UPDATE PORTLAND, OR 97214

· Current Real Estate Market Conditions for Single Family Homes · Trends in Pricing · Current Levels of Supply and Demand · Value Metrics

· Report for the week of September 27, 2010

· Presented by Jody Patton Ticor Title jody.patton@ticortitle.com 503.956.1978

Powered by Altos Research LLC | www.altosresearch.com | Copyright © 2005-2010 Altos Research LLC


City Overview

Single Family Homes in

PORTLAND, OR

Jody Patton | Ticor Title | 503.219.2163

This Week

Real-Time Market Profile

The median list price in PORTLAND, OR this week is $289,000. The 4236 properties have been on the market for an average of 140 days.

Trend

Median List Price

$ 289,000

Average List Price

$ 378,920 $ 153

±+

Average Days on Market (DoM)

140

±+

Inventory of Properties Listed

4236

≠≠

Asking Price Per Square Foot

Most Expensive Listing

Inventory has been lightening lately and the Market Action Index has been trending up. These are mildly positive indications for the market.

$ 7,850,000

Least Expensive Listing

$ 13,985

Average Age of Listing

51

Percent of Properties with Price Decrease

53 %

Percent Relisted (reset DOM)

17 %

Percent Flip (price increased)

3%

Median House Size (sq ft)

2059

Median Lot Size

Supply and Demand

±+

4,501 - 6,500 sqft

Median Number of Bedrooms

3.0

Median Number of Bathrooms

2.0

Altos Research Value Statistics

The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes.

Market Action Index

Strong Buyer's

14.6

==

The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies a seller's advantage. Below 30, conditions give the advantage to the buyer.

Trend Key:

±+

No change

== Strong upward trend ≠≠ Strong downward trend = Slight upward trend ≠ Slight downward trend

Characteristics per Quartile Quartile

Median Price

Sq. Ft. Lot Size

Beds

Baths

Age Inventory New

Absorbed

DOM

Top/First

$ 595,000

3251

8,001 10,000 sqft

4.0

3.0

36

1059

45

48

152

Most expensive 25% of properties

Upper/Second

$ 349,000

2298

4,501 6,500 sqft

3.0

2.0

57

1059

47

68

131

Upper-middle 25% of properties

Lower/Third

$ 239,900

1702

4,501 6,500 sqft

3.0

2.0

54

1059

62

56

133

Lower-middle 25% of properties

Bottom/Fourth

$ 164,900

1224

4,501 6,500 sqft

3.0

1.0

56

1059

64

86

145

Least expensive 25% of properties

Page 2 of 11

Monday September 27, 2010


Single Family Homes in

City Overview

PORTLAND, OR

Jody Patton | Ticor Title | 503.219.2163

Median Price The market seems to have paused around this plateau. The Market Action Index is a good leading indicator for the durability of this trend.

7-day Average

90-day Average

Quartile Prices Prices have settled at a price plateau across the board. Prices in all four quartiles are basically mixed. Look for a persistent shift (up or down) in the Market Action Index before prices move from these current levels.

First/Top

Page 3 of 11

Second/Upper

Third/Lower

Monday September 27, 2010

Fourth/Bottom


Single Family Homes in

City Overview

PORTLAND, OR

Jody Patton | Ticor Title | 503.219.2163

Price per Square Foot The market plateau is seen across the price and value. The price per square foot and median list price have both been reasonably stagnant. Watch the Market Action Index for persistent changes as a leading indicator before the market moves from these levels.

7-day Average

90-day Average

Inventory of Properties Listed for Sale Inventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look to the Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply.

7-day Average

Page 4 of 11

90-day Average

Monday September 27, 2010


Single Family Homes in

City Overview

PORTLAND, OR

Jody Patton | Ticor Title | 503.219.2163

Market Action Index The PORTLAND market is currently quite strongly in the Buyer's Advantage zone (below 30). The 90-day Market Action Index stands at 14.60. With several months of inventory available at the current sales rate, buyers should find ample choice.

90-day Average

Buyers/Sellers Cutoff

Market Action Index per Quartile Not surprisingly given the overall Market Action Index, all quartiles are in the Buyer's Market zone with several months of inventory given the current rate of demand for homes in the quartile. Watch the quartile for changes before the overall market shifts. Often one end of the market (e.g. the low end) will improve and signal a strengthening market before the whole group changes.

First/Top

Second/Upper

Third/Lower

Fourth/Bottom

Buyers/Sellers Cutoff Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s Advantage zone (below 30) for a long period, prices are likely in for a downward correction. The Market Action Index (MAI) illustrates a balance between supply and demand using a statistical function of the current rate of sale versus current inventory.

Page 5 of 11

Monday September 27, 2010


Single Family Homes in

City Overview

PORTLAND, OR

Jody Patton | Ticor Title | 503.219.2163

Days on Market The properties have been on the market for an average of 140 days. Half of the listings have come newly on the market in the past 91 or so days.

7-day Average

90-day Average

Days on Market per Quartile It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles.

First/Top

Page 6 of 11

Second/Upper

Third/Lower

Monday September 27, 2010

Fourth/Bottom


Neighborhood Detail

Single Family Homes in

PORTLAND, OR 97214

Jody Patton | Ticor Title | 503.219.2163

This Week

Real-Time Market Profile

The median list price in PORTLAND, OR 97214 this week is $399,900. The 79 properties have been on the market for an average of 114 days.

Trend

Median List Price

$ 399,900

Average List Price

$ 454,016 $ 168

±+

Average Days on Market (DoM)

114

≠≠

Inventory of Properties Listed

79

≠≠

Asking Price Per Square Foot

Most Expensive Listing

Inventory is tightening and days-onmarket is falling. But demand as measured by the Market Action Index is also trending down. The market is not giving strong up or down signals from these data.

$ 1,699,000

Least Expensive Listing

$ 189,900

Average Age of Listing

92

Percent of Properties with Price Decrease

59 %

Percent Relisted (reset DOM)

18 %

Percent Flip (price increased)

1%

Median House Size (sq ft)

2473

Median Lot Size

Supply and Demand

±+

Less than 4,500 sqft

Median Number of Bedrooms

3.0

Median Number of Bathrooms

2.0

Altos Research Value Statistics

The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes.

Market Action Index

Strong Buyer's

15.6

≠≠

The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies a seller's advantage. Below 30, conditions give the advantage to the buyer.

Trend Key:

±+

== Strong upward trend ≠≠ Strong downward trend = Slight upward trend ≠ Slight downward trend

No change

Characteristics per Quartile Quartile

Median Price

Sq. Ft. Lot Size

Beds

Baths

Age Inventory New

Absorbed

DOM

Top/First

$ 615,000

3588

4,501 6,500 sqft

4.0

3.0

97

19

0

0

87

Upper/Second

$ 469,900

2588

Less than 4,500 sqft

3.0

2.0

102

20

3

2

132

Upper-middle 25% of properties

Lower/Third

$ 352,475

2294

Less than 4,500 sqft

3.0

2.0

102

20

1

1

144

Lower-middle 25% of properties

Bottom/Fourth

$ 262,450

1680

Less than 4,500 sqft

2.0

1.0

101

20

2

2

93

Page 7 of 11

Monday September 27, 2010

Most expensive 25% of properties

Least expensive 25% of properties


Single Family Homes in

Neighborhood Detail

PORTLAND, OR 97214

Jody Patton | Ticor Title | 503.219.2163

Median Price We continue to see prices in this zip code hovering around these current levels, even though they bumped up a bit this week. Look for a persistent up-shift in the Market Action Index before we see prices move significantly from here.

7-day Average

90-day Average

Quartile Prices In the quartile market segments, we see the upper end of the market in this zip code showing weakness. While there is enough demand in the low end (Quartiles 3 and 4) to keep prices flat, unless there is a persistent up-shift in the Market Action Index, the entire market may resume a down trend soon.

First/Top

Page 8 of 11

Second/Upper

Third/Lower

Monday September 27, 2010

Fourth/Bottom


Single Family Homes in

Neighborhood Detail

PORTLAND, OR 97214

Jody Patton | Ticor Title | 503.219.2163

Price per Square Foot The market plateau is seen across the price and value. The price per square foot and median list price have both been reasonably stagnant. Watch the Market Action Index for persistent changes as a leading indicator before the market moves from these levels.

7-day Average

90-day Average

Inventory of Properties Listed for Sale Inventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look to the Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply.

7-day Average

Page 9 of 11

90-day Average

Monday September 27, 2010


Single Family Homes in

Neighborhood Detail

PORTLAND, OR 97214

Jody Patton | Ticor Title | 503.219.2163

Market Action Index The PORTLAND, 97214 market is currently quite strongly in the Buyer's Advantage zone (below 30). The 90-day Market Action Index stands at 15.62. With several months of inventory available at the current sales rate, buyers should find ample choice.

90-day Average

Buyers/Sellers Cutoff

Market Action Index per Quartile Not surprisingly, all quartiles are in the Buyer's Market zone with several months of inventory given the current levels of demand. Watch the quartiles for changes before the overall market shifts.

First/Top

Second/Upper

Third/Lower

Fourth/Bottom

Buyers/Sellers Cutoff Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s Advantage zone (below 30) for a long period, prices are likely in for a downward correction. The Market Action Index (MAI) illustrates a balance between supply and demand using a statistical function of the current rate of sale versus current inventory.

Page 10 of 11

Monday September 27, 2010


Single Family Homes in

Neighborhood Detail

PORTLAND, OR 97214

Jody Patton | Ticor Title | 503.219.2163

Days on Market The properties have been on the market for an average of 114 days. Half of the listings have come newly on the market in the past 84 or so days.

7-day Average

90-day Average

Days on Market per Quartile It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles.

First/Top

Page 11 of 11

Second/Upper

Third/Lower

Monday September 27, 2010

Fourth/Bottom


Portland Market Report