July 21st, 2014 Clackamas County Real Estate Update

Sandy, OR 97055 Real Estate Update

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Sandy, Oregon homes on acreage for sale including horse properties are coming on the market much faster than such homes are being purchased. Across the board, residential properties in Sandy, OR are remaining on the market an average of about 150 days, which is looking to go down dramatically. The just over 120 properties in Sandy are averaging a list price of about $340,000. We are looking to see a slight rise in inventory, but with the days on the market still decreasing, sellers may take the advantage in terms of supply/demand balance over the buyers. The market is looking good, making it a good time to purchase property.

Housing Characteristics Per Quartile

Inventory of available real estate in the top and bottom pricing quartile are rising dramatically more than the middle two quartiles. Purchased homes in the middle two pricing categories seem roughly in line with purchases and include newer homes built on the cusp of the Great Recession. Builders who have been sitting on inventory of homes that failed to sell as the market dropped in 2008 are now able to sell off some of their assets in order to free up revenue for new ventures. Homes in the lowest pricing quartile seem the most imbalanced in that their were two properties purchased while there were 8 new listings which may mean that entry-level housing may see price reductions. Similarly, top tier properties saw 4 new listings while only one sold this week which again may indicate negative pricing pressure in that range. Not surprisingly, the fact that starter houses and the most expensive houses are the slowest selling categories may be an illustration of what is happening in the job market. Low average household income across America and low working class incomes in particular may be taking their toll on would-be buyers. Even though we have seen prices stay consistent at a high point, we could see pricing become a little competitive in the near future with the increase of inventory. If we see these trends continue, sellers will continue to have the advantage over buyers.

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Molalla, OR 97038 Real Estate Market

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During the third week in July, Molalla properties were sitting at an average list price of about $320,000. It should be noted that homes on acreage near Molalla, Oregon push that average price up considerably. These properties average about 150 days on the market. With the inventory of properties decreasing and demand rising, sellers see an advantage over buyers. With the current trends, the market is looking to be very positive and will continue to be in weeks to come. The spring thaw in terms of real estate prices in this area have pushed buyers off the fence, eager to buy now before prices increase further which is good news for sellers who may have been unable to sell previously due to depressed property values. As is usual for rural communities, homes on acreage including horse properties and agriculture are highly desirable in comparison to single family homes in neighborhood developments. However, the high cost of buying acreage combined with the limited incomes of would-be buyers may put pressure on sellers to compete in terms of price.

Characteristics Per Quartile: Acreage & Neighborhood Properties

Currently Molalla homes and properties are all sitting at their higher points in all quartiles. This has somewhat negatively influenced the top quartile homes, causing them to remain on the market quite a bit longer than other quartiles. Factors such as household income and the economy may be holding would-be buyers back on purchasing these high-end horse properties. These properties in the top pricing tiers are certainly sought-after, however additional factors such as financing may also be holding qualified buyers back as well. With these trends in mind, top quartile prices could see a significant decrease, which could influence the lower quartile homes as well. This is something to keep an eye on in the next couple months.
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Damascus, OR 97089 Housing Report

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As of July 14th, 2014 there are just over 50 properties listed for sale in Damascus. The average price for a home in this area sits at about $505,000. Damascus properties have been seeing an upward trend in prices over the past few weeks along with a decrease in properties listed, which has made an advantage for sellers that will remain for the foreseeable future. Newer housing developments within Damascus, Oregon often feature smaller lots whereas older construction often sits on oversize lots, junior acres or even sprawling acreage estates. The ‘close-in’ proximity of Damascus compared to other rural areas makes the area especially enticing for working professionals who need to commute to business districts in Clackamas, Happy Valley or Portland. For others, a home in one of the newer subdivisions provides a closer proximity to recreational outdoor activities on the Clackamas River or the nearby Mt Hood National Forest. With trends remaining pretty consistent, the market looks pretty positive.

Characteristics Per Quartile: Single Family Residences

Damascus homes are seeing prices at their absolute highest this week. Even with the high prices and high demand, buyers could see increased competition amongst sellers in the upper second and lower third pricing quartiles. This increased seller competition may be caused by the fact that more of these upper second and lower third pricing tier properties have come on the market than have been purchased. As is common in rural and suburban areas, the higher priced homes offer correspondingly larger lot size with top tier homes featuring 2.5-5.0 acre lots on average. The bottom/lowest quartile properties have seen the highest number of absorbed properties this week. The fact that much of the buying has occurred in the lowest pricing tier reflects the wider economy and stagnant household income. Keep an eye on whether buyers or sellers have the advantage (and in what pricing tier) to gain possible insight into if and when prices will take a shift downward.

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Boring, OR 97009 Rural Property Information

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Boring, OR properties are seeing an average price per square foot of about $170. There are only about 30 properties listed at this time. These properties are remaining on the market on average about 200 days. Boring, as well as other rural areas, is sitting at a sellers’ advantage at the moment, however slow sales could change that in the coming weeks. Buyers will likely see prices rise consistently and inversely proportional with the downward trend in supply.

Residential Property Characteristics Per Quartile

Quartile prices are heading to their peak in the next couple weeks, although sales remain slow. We could see and upward shift of days on the market as we see quartile prices reach their peaks followed by an increase in days on market. Predictably, price changes will most likely begin to trend downward if current trends translate into an increase of days on the market. With those changes, the market could easily flip to a buyers’ advantage over sellers. The Boring, Oregon real estate market remains in a state of flux so keep a close eye on supply versus demand in weeks to come to see what turn the market will take. Unlike some other markets in rural Clackamas county, Boring, Oregon has residential homes on acreage lots available in every price quartile meaning that qualified buyers have options for close-in country living in this area.

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