Portland Oregon Real Estate Market May 31, 2012

Up, Up, and Away???

This latest news released from Zillow reports national home sales AND rents were up to their highest levels since 2006. http://goo.gl/28gpz Does this mean we will continue to see appreciation from this point forward? In my opinion, certain economic events will need to occur for this trend to maintain.

1. Employment figures will need to continue to improve. Without it, those looking for work will not have the means to separate from family and extended family living.

2. Europe needs to find a solution to their countries default crisis, to stabilize both European and United States invesment markets.

3. Mortgage interest rates will need to stay relatively low. This will most likely be the case, as a sudden rise would put a halt to any recovery in the housing sector.

4. Inventory levels will need to continue to stay low, as well. With lower inventory, there is more buyer demand. With more demand, we begin to see competition on the buying side which is starting to bring offers over list price on a percentage of homes.

If these trends continues and postive economic factors play out, we may see extended appreciation for the long term.