Local Market Trends

The real estate market throughout the foothills area of southern Clackamas County was extremely brisk in the third quarter. So much so that, if no new listings were added, prospective home buyers would soon find themselves with nothing to look at.

Real estate firms' residential property inventories would be completely depleted in less than a month if no new listings were added, based on the rate of sales from the third quarter. Sales have been so brisk that the average price for the region shot over the $340,000 mark.

Despite additional interest rate hikes by federal regulators, mortgage interest rates have remained at near-record-low levels, continuing to prompt high buyer activity. Fortunately, skyrocketing prices have meanwhile spurred homeowners to continue adding inventory to the market.

The number of new listings was down throughout the area compared to the second three months of 2005, while the number of closed sales was up, according to data from the Regional Multiple Listing Service™, a Portland-based clearinghouse that compiles data for real estate firms throughout Clackamas County and five other counties of the Portland metropolitan area. Excess inventory, measured in days, fell by nearly 44 percent to just over 20 days.

Altogether, 602 single-family homes were sold in southern Clackamas County during the third quarter, while 736 new listings were taken. This contrasts with 546 sales during the third quarter of 2004, and 658 new listings.

The median price for southern Clackamas County, which encompasses a portion of the Cascade foothills and the prime farmland of the North Willamette Valley, was $280,000 for the quarter, a 7.1-percent boost from the previous quarter and a 26.6-percent jump from the $221,250 median price for the third quarter of 2004. A median-priced home is one whose price falls exactly in the middle of all homes sold, with half of the homes sold being priced higher, and half being priced lower.

The region's average price of $340,357 has risen an estimated 39.4 percent since the third quarter last year. Part of the reason for the disproportionate rise in the average price may be sales of custom, luxury homes from the NW Natural Street of Dreams. The annual project rotates from place to place around the Portland metropolitan area, but was located in southern Clackamas County during both of the last two summers. Street of Dreams developers had not brought their project to southern Clackamas County before 2004.

The most popular residential properties continue to be single-family detached homes of 3 bedrooms, with those in good condition and priced under $300,000 selling best.

Prices in Wilsonville continue to be the highest in southern Clackamas County, with a median home price for the third quarter of $365,000, a 12.2-percent increase from the second quarter. Ninety-five homes were sold there during this period, seven fewer than in the second quarter.

Prices in Molalla were lowest, where RMLS™ statistics showed a median price of $206,000, a 10.5-percent increase from the second quarter. The number of Molalla homes sold in the third quarter rose by 14, from 59 in the second quarter.

Bucking the trend, the median price in Beavercreek fell to $325,000 in the July-September period, representing a 4.4-percent decline. However, the average price inched higher, from $344,133 in the second quarter to $348,974 in the third. Twenty-five properties were sold the third quarter, compared to 15 in the previous quarter.

Canby had a median price of $249,500 with 90 homes sold last quarter. This compares with a median price in the second quarter of $234,900 with 89 homes sold.

The $292,750 median price for residential property in Mulino was nearly unchanged, climbing only 0.1 percent from $292,400 in the second quarter. The average price was slightly more robust, however, rising 1.9 percent to $309,850. Twelve Mulino properties were sold in the third quarter, one more than in the second quarter.

Oregon City home sales continued to be hot with a 6.9-percent increase in price and a 5.2-percent increase in the number of sales. The median price here was $283,185, with 282 homes sold.

Federal officials who handle economic policy have been continuing this year to raise the cost of funds to banks and other lenders. Nonetheless, financial experts have continued to predict no major impact on mortgage interest rates. Mortgage rates in NW Oregon crept slightly higher during the third quarter.

Nationally, the average nominal interest rate for a 30-year, fixed-rate mortgage hovered between about 5.75 and 6 percent during the quarter. This contrasts with a range between 6.2 and 5.88 percent during the same period in 2004, and a range between 5.8 and 6.29 percent in the third quarter of 2003.

For a table of market statistics for the Foothills area, click the "Market Summary" button near the top of this page. For market information regarding other parts of Clackamas County or the Cascade foothills, or for more detailed data, call Craig Loughridge at 503-632-8258.