The newest Real Estate Report came out from RMLS last week and it shows “Inventory In Months” dropped again. At the pace we are selling, if no new listings hit the market, all of the current listings would be depleted in 1.5 months.
To keep this in perspective, in January 2009 we had 19.2 months of inventory!
What’s really insane is that in July of 2008 we had 18,000 active residential listings vs 4,325 at the end of May 2017.
Prices have been going up because it’s estimated that 20,000+ people are moving here a year, interest rates are still low and we have the lowest unemployment in four decades. Portland is still the cheapest big city on the west coast.
We aren’t set up for a big market correction the way we were ten years ago. That was a time of horrible loans that finally sunk the world economy. While we are getting whiffs of people trying to bring crazy subprime back, it’s still doesn’t have a foothold and I hope all of the banks will stay away from it. Recent news of Wells Fargo getting into trouble again might help keep the loosening of loan standards at bay.
Here’s what the inventory looked like when we took the turn in 2007 after the ramp up in 2005 and 2006. At least for now, we are still a strong Seller’s Market and all of our strong indicators say that will continue. I just hope prices can stabilize; we can’t keep this up forever.