PORTLAND, Ore. -- Just when we thought the real estate market was making a comeback in the last few months there's a new reality check.
In Oregon we've taken a step back, while across the country sales have improved a bit. It once again speaks to how Oregon lags when it comes to the recession recovery.
For Realtor Mary Low with Iron Gate Realty, a listing in Milwaukie is prime example of what's happening in the metro real estate market.
The listing has been on the market since April, but so far there's been two price drops totaling $34,000.
"It should be a better market than it is. Because interest rates are wonderful. A 30 year fixed are under 5 percent," said Low.
According to the Metro RMLS, in June the average sale price dropped 3.3 percent and the median home price dropped $9,000 to $240,000.
After the success of the $8,000 dollar tax credit and a surge of sales in April and May,once the incentives went away, so did sales.
"We probably tapped future demand," noted Brian Allen, owner of Windermere Cornin & Caplan in Portland and former Chairman of the RMLS.
"So people who may have moved in the summer accelerated their decision to the spring time, so were going to have to wait through the summer now to catch back up with a normal market," said Allen.
But, that could take some time. With foreclosure and short sales up 65 percent over last year and high inventories now at more than seven months, coupled with double digit unemployment, low consumer confidence is getting in the way.
"It has to do with jobs. Our unemployment is still higher than other parts of the country, until we get the jobs back in Oregon it will definitely impact the real estate market," said Allen.
And according to Mary Low when it comes to selling your home it comes down to pricing it right from the start.
"Pricing your home over what the market,especially in a market like this is really cutting yourself off at the knees, because you're not going to get the best buyer to look seriously at your property," said Low.
The average number of days on the market to sell a home is 121 days.
Despite the slow down in sales, some areas that continue to hold their own include Sellwood, East and West Moreland and other communities close in to Portland.
