Real Estate Market Confirms Slow Economic Recovery
Tracking the economy as it theoretically recovers from the recession is a tricky process. Jobless rates, consumer spending, home prices, imports and exports – each number can give a different report of what the economy is like, from sunny to downright pessimistic.
University of Oregon professor of economics Tim Duy puts together an index, the UO Index of Economic Indicators, that pieces together these numbers to give an overall picture of how the economy is doing. His most recent report, released this week, says that Oregon’s economy is continuing to grow, slowly but steadily, in 2012. The index rose 3.6% as of March this year, and consumer sentiment is one of the indicators largely responsible for this gain, according to an article in the Register Guard.
In other words, Oregonians are more willing to spend money this year than last year, moving the economy along in some sectors – including real estate. The most recent Portland real estate market statistics from the RMLS reflect this trend, showing no gain in home prices over last year, but an increase in the total number of homes sold.
“The American dream of owning a home and having a nice car might be returning a bit,” says the Register Guard. Indeed, when consumer sentiment improves like this, Americans often turn to a solid investment in real estate. With affordability at an historical high in the Portland real estate market, it’s not surprising that sales have gone up.
Will this growth continue? Neither the UO Index report or the RMLS Market Action report are making any claims on that. Other economic indicators like job growth and new home construction are still lagging, although the economists say that we are out of danger of slipping back into recession. The average sale price for a Portland home has fallen 1.8% in the past year, which could explain why consumers are more likely to buy an existing home than build a new one.
If you’re wondering if now’s the time to buy, or sell, your Portland home, market statistics and economic indicators can only tell you so much. Contact your Portland Realtor to get the inside scoop and professional advice you need.May 21, 2012