Janice:

Thank you for being a voice of reason in this discussion. I get so tired of people from other states interjecting comments about markets for which they have no knowledge, let alone licenses. Your comment about attitude is on the money. It is tough for everyone out there, but our business of helping people buy and sell homes goes on every day regardless of market conditions. People have needs and we are here to fill them.

Cheers,
Kate Myers

Oh, oh, time for me to get on my soapbox.

This question specifically asked for facts . . . comparing values from last year to this year. . .not speculation on future pricing. The reality is none of us have a crystal ball and it is impossible to forecast with any accuracy what will come in the future. Clearly greater minds than us did not predict our current state of affairs or we would not be where we are.

I do agree with Dirk that we will continue to see a decline in home values. And facts do support that the average priced home has not been affordable for the average home buyer for some time and until that happens home values will continue to decline. Just like in nature we must achieve balance remain healthy. We have been out of balance for a while. It’s simple supply and demand.

An increasing number of people have a positive outlook the market. Tomorrow I will be showing homes to clients who have lived lives long enough to recognize the cycles of real estate. They sold their home in 2007, sensing that we were near the top. not waiting for the market to turn, rented for a time and are now diving back into the market. They have great credit, will make a 20% down payment and are ready to go. Just like the old days. This is the market for them. And guess what . . . they will be getting a great interest rate.

Consider home sales in California. Home prices last month declined by approximately (year over year) 41% but home purchases were up 83% over last year and inventory went from 15.3 months last year to 6.5 months this year. http://www.bloomberg.com/apps/news?pid=20601087&sid=aUnH…

In summary, I have a more positive outlook about real estate. Me, I’ve shifted with the market and doing business accordingly. I do my best to serve my clients whether buyers or sellers -- regardless of the market – and give them the facts for them to make their own decisions. It’s a tough time to be a home seller who must sell and opportunities are there for buyers with an eye toward the future.

I can’t control the market. I can control my attitude.

Janice

Chris....

Foreclosures and filings for foreclosure in this area are on the rise. This is not good as it speaks to a trend that will continue. I would gather things will fall quite a bit before the next 12 months is out. The others answering on here have some facts but the reality is only time will tell. I would say a 10-15% correction from where we are now is highly probable. So much of this depends on if DC can fix the foreclosure mess or not.

It is just a real mess and I am not seeing anything happen on this end that is going to help anybody that really works. Banks are not helping and time and again where I see that they can ....they do not.

So lets hope for the best and prepare for the worst.

Best of luck to you!

Dirk

Hello Cindy,

I agree with Chris about our current trend.

Broad statistics only tell part of the story it is important refine your search to data that is specific to property that you or your client is interested in. When I began to research your question I found that depending on the price range considered there was actually an increase in average price of some homes over last year partly because of financing considerations resulting in increased demand in lower price brackets that may have been overlooked before. Also, there may be neighborhoods that are holding their values more than others.

February provides a very small sampling of homes in the 97034 but overall there is a general decline that can easily be seen if charted. With the vast reserve of available homes buyers can be bold.

Janice Lorentz,
Keller Williams Realty, SW Portland

Hi Cindy~

According to the Portland MLS, zip code 97034 - the eastern part of lake Oswego - has seen the median sales price fall 6.8% from February 2008 to February 2009.

February 2008 median sales price was $545,000 - February 2009 median sales price was $508,200 - a reduction of $36,800.

As of today, there are 361 residential properties on the market - 22 properties have closed escrow in the last 90 days, or roughly 7 per month.

My personal opinion is that the median sales price is going to continue to decline. While sales should increase with spring and the economic stimulus, inventories will also swell as more properties come on the market...

If you have any other questions, please don't hesitate to ask.

Chris

Cindy,

Below is the link.

http://www.trulia.com/real_estate/Lake_Oswego-Oregon/