The greater Portland Metro area, including Vancouver Wa, has had a huge reduction in months of inventory- down to 4.9 months in September of this year. The outlying counties have not fared as well as Multnomah, but all are doing better than 2008. This report released yesterday from Norris, Beggs and Simpson summarizes the price trends as follows:
"New and existing home prices have been falling systematically since the peak price period of the housing bubble in the Summer
of 2007 when median prices in metro area hit an all time high of $302,000. Across all new and existing homes, median
prices are currently 18% off peak prices during the height of the bubble. The correction has been robust, averaging an annual
price depression of 7% over the past eight quarters.
Based on the historic sales trend observed between 1994 and 2002, current
median prices are roughly 6% above their forecasted level. Price declines appear
to be slowing in pace, and the market is not far off its price equilibrium. However,
housing markets tend to “overcorrect”, and we would anticipate prices to fall
slightly below trend in the short-term."
Click here for the full report from Norris, Beggs & Simpson
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