Local Market Trends

If trends around other parts of the North Willamette Valley are any indicator, it looks like the third quarter of 2007 may portend a general decline throughout the real estate market in the Cascade Foothills and regions east of the Willamette River.

While home sales were were were flagging, yet still strong, in the first half of 2007, and while home prices continued to rise, the third quarter saw a moderation in prices around many parts of the North Willamette Valley. And sales continued to sag.

Sales and prices in Oregon City were up from the previous quarter, with prices climbing 3.9 percent, while sales rose 7.8 percent. Year-over-year sales were up 8.8 percent, but prices in the third quarter seemed to be moderating, climbing at an annual rate of 5.7 percent. Meanwhile, the average size of homes sold also increased, resulting in an actual decline in price when adjusted for home size. The average price per square foot was $173 in the third quarter this year, compared to $177 in the third quarter last year.

Sales in small-town Molalla, by contrast, were down dramatically in the third quarter compared to both the previous quarter and last year's third quarter. But prices continued to rise. Sales fell 22 percent compared to the third quarter last year, while the average price of a home climbed 9.7 percent in the same period. At the same time, the price per square foot rose to $159 from $154 in the third quarter of 2006.

In northeast Salem and Keizer, sales were declining, but prices continued to rise. Sales were down more than 9 percent from the second quarter, and fell 27.1 percent from the third quarter of 2006. The average price for a home, meanwhile, rose 5.3 percent from $223,466 in 2006 to $235,275 in the third quarter this year. The average price per square foot rose from $138 to $142 during the same period.

Sales in Silverton also were down, dropping 10.6 percent from the second quarter, and 29.8 percent from the third quarter last year. But just like many other communities, Silverton's home prices continued to rise. The average price was $310,436 in the third quarter, 14.6 percent higher than the same period last year. The average price per square foot was $167, a 6.4-percent increase over $157 in last year's third quarter.

Data in the table below reflect third-quarter sales of homes in selected communities around the region.

Month	Units Listed	Avg. List Price($)	2006 Units Sold(Q3)	Current Units Sold	Avg. Sold Price($)	2006 Sold Price($)	Market Time¹
Aloha/Beaverton	1342	314,123	503	549	302,366	317,335	9 wks
Aumsville	33	335,864	13	26	249,569	272,635	18 wks
Beavercreek	22	679,193	14	10	495,600	423,346	10 wks
Canby	153	355,055	96	73	319,490	318,256	8 wks
Colton	19	401,331	12	5	383,300	329,833	13 wks
Estacada	80	430,860	26	29	283,674	261,518	11 wks
Keizer	238	294,972	140	108	242,143	243,336	11 wks
Lake Oswego	504	657,518	196	224	574,812	710,907	10 wks
Molalla	130	333,978	74	58	286,902	261,420	18 wks
Mulino	21	590,843	10	8	378,125	467,720	11 wks
Oregon City	458	446,470	216	235	354,781	349,807	10 wks
Portland SE	2,127	294,213	1,096	976	291,303	278,123	8 wks
Portland SW	1,188	508,796	631	588	459,425	446,811	8 wks
Salem, Suburban NE	173	234,416	126	86	226,650	201,388	14 wks
Silverton	114	335,498	84	59	310,436	270,780	17 wks
Tigard	684	390,951	364	289	357,508	370,372	8 wks
West Linn	364	608,990	144	127	526,118	494,102	9 wks
Wilsonville	169	477,794	90	71	396,363	444,049	17 wks
Totals:	679	226,459,692	333,519	419	152,583,899	364,162	64

Total Listed: 679	Sold Units: 419	Remaining Units: 260	Inventory² Accum: 1.86
Min Sold Price: $97,000	Median Sold Price: $316,787	Average Sold Price: $364,162	Max Sold Price: $1,495,000

To get a more useful and precise picture of the real estate market in your area, call Craig Loughridge at 503-632-8258 or visit nwhomepro.com to contact Craig via e-mail.