This Month in Real EstateDecember 2010

1) Portland Market Update.

The Portland Metro area market continued to show decreases in activity in November.However, while closed sales were the lowest since February of this year, they decreased byonly 1% from the previous month. Pending sales were also higher than November of thepast two years.Closed sales were down 28.7% compared to November 2009, but pending sales were up7.4%. New listings dipped down 1%. Comparing the previous month of October 2010 withNovember 2010 shows closed sales decreased from 1,292 to 1,279 (-1%). Additionally,pending sales fell from 1,632 to 1,426 (-12.6%) and new listings dropped from 3,119 to2,437 (-20.7%).At the month’s rate of sales, the 13,103 active residential listings would last approximately10.2 months. Inventory in November is the lowest it has been since June of this year ... forfull RMLS report click here.

Contact us, your localreal estate experts, forinformation about

what's going on in ourarea.

John & Melody Hatch

& Angela

Keller Williams RealtyProfessionals

9755 SW Barnes Rdsuite 560, Portland OR

97225

503-748-8310

john@hatchhomes.com

www.HatchHomes.com

For more statistics go to www.HatchHomes.info

2) John's notes on the Portland numbers.

Inventory saw a drop which is positive for sellers. We have seen more showings on ourlistings generally over the past 2 weeks as buyers sense the need to take advantage ofbuying opportunities before interest rates rise as they are predicted to do. Looks like ourBrokerage will have a record December in sales despite the gloomy RMLS numbers!

3) The latest from the HatchHomes Group.

We wish you a VERY HAPPY HOLIDAY and a GREAT NEW YEAR.

To celebrate Angela joining the team as a fully licensed broker and John loosing 35pounds we took new team photos this month!!

We launched a new web site www.northportlandhomesearch.com and Angela has 2transactions in escrow in her first month as a fully licensed broker.

The HatchHomes team will be celebrating new year at the beach with Melody's eldestdaughter who will be visiting from the UK with her family.

Interest rates are still at record lows - contact us if you are thinking of refinancing ortaking advantage of this great opportunity to buy an investment property and wouldlike an introduction to a great lender!

4) Featured Homes.

A lot of transactions this month with lots of offers.

Our new listing on the 21st floor of the Grant Tower of American Plaza is attracting attention- spectacular views.

So nice we took a new team photo from this condo:-

Motivated sellers have reduced the price of our new listing in Cooper Mountain.

Newsletter Contents

1. Portland MarketUpdate.

2. John's notes on thePortland numbers.

3. The latest from theHatchHomes Group.

4. Featured homes.

5. Real estateCyberTips.

6. National MarketUpdate

7. Interest Rates

8. Video

9. Topics for Owners,Buyers & Sellers

We have a price reduction on our listing on SW Anthony.

Also a price reduction on our listing with fantastic views over john's landing

Our listing on Oregon city now only $165,000 - make an offer!!

A new listing in Beaverton this month, 4 bed 3 full baths one level that is immaculate$249,900

Look for more new listings coming soon at www.HatchHomes.com

5) Real Estate CyberTips.

Click here to go to our latest Real Estate Internet tips.

6) National Market Update.

The housing market continues its uneven and gradual recovery without the aid of the taxcredit. Experts believe this will be the trend moving forward. Interest rates hit another recordlow but have started moving back up as the overall economy improves.

Despite a less-than-expected employment report, consumers seem to be feeling brighterabout the future. While the Consumer Confidence Index about the Present Situation roseonly slightly, the Expectation Index showed substantial improvement. As we enter into theholiday gift-buying season, consumers are expected to be out shopping and buying moregifts for under the tree this year. Reports indicate a 13-24% increase in retail sales from lastyear. Consumer spending accounts for about half of all economic activity in the US; as longas consumers are spending and using debt responsibly, this is a positive indicator foreconomic growth.

This march back up continues to provide excellent opportunities: an ample selection ofhomes, affordable prices, and historically low interest rates. Experts anticipate both theeconomy and the housing market will continue on a path to a complete recovery.

Home Sales

Home sales dropped slightly in October, compared with the previous month, despite atemporary moratorium on foreclosures, which have recently represented more than onethird of sales activity. Sales were up 15% from July when the tax credit expiration caused adrop-off in sales. The most significant indicator of a market rebound, however, appears tobe the October pending sales report. A 10.4% increase in pending sales, which measureshomes under contract, signals stronger home sales activity in the coming months as thehomes under contract close.

Home Price

Home prices have shown considerable stability when compared with the previous severalyears. October’s median home price declined slightly, down less than 1% from the previousmonth and year. A recent study shows an increased interest in smaller homes. Smallerhomes often mean smaller price tags, depending on location. While the market currentlyprovides many opportunities for buyers, sellers look forward to the general trending upwardof home price as the market’s stability without government support grows deeper roots.

Inventory

There are fewer homes on the market. Total inventory fell to 3.86 million in October from 4million in September. The month’s supply* of homes on the market fell to 10.5 months.While still at a relatively high level, months of inventory has shrunken substantially sinceJuly’s 12.5 months. As lending standards continue to loosen and return to historical norms,more people will be able to buy their first home, move up, or invest and take advantage ofthe abundant opportunities in the current market – including historically low interest rates,highly affordable prices, and an ample but shrinking selection of homes.

* Month’s supply of inventory measures how many months it willtake to sell all the homes that are for sale, if no new homes come onthe market and buyers continue to buy at the same pace or rate.

Affordability

Housing is at record affordability levels. Prospective home buyers stand to benefit fromthe lowest mortgage rates in decades, as well as advantageous home prices. The homeprice-to-income ratio, 13.5% in October, continues to remain well below the historicalstandard. Stabilizing home prices and rising interest rates are anticipated to begin drawingaffordability back up toward more normal levels.

Source: National Association of Realtors - October housing data released November 23.

7) Interest Rates.

Mortgage rates hit another record low of 4.17% on November 11 after which they rose toclose to 4.4% for the remainder of the month. Historically low rates have contributed to realsavings for buyers who will continue to realize those savings for as long as they own thehome. As overall economic recovery gains traction, rates must rise to keep inflation incheck. Industry economist Lawrence Yun anticipates rates to be between 5.4% and 6% bythe end of 2011.

Type Rate

30 year fixed 4.46%

15 year fixed 3.81%

5/1-year ARM 3.25%

30 year average for a 30year fixed rate mortgage

8.9%

Source: Freddie Mac, Rates as of December 2.

8) This Month's Video.

9) Topics For Home Owners, Buyers & Sellers.

Homes Have Never Been More Affordable

For most individual home buyers, there are only a few factors that really matter:

• Can I afford this home?

• Is it a good investment?

• Does it meet my family’s needs?

So it’s a bit surprising that the most important housing statistic has gone largely unreported:homes have never been more affordable. Affordability, measured by the medianmortgage payment on the current median-priced home ($171,000) as a percentage of themedian household income ($62,141), is lower than it’s been in a generation. The chartbelow shows affordability at a record level, having significantly improved since the height ofthe recent housing boom in 2006.

For more detail, check out Keller Williams Realty’s 7 Reasons Why Now Is a Great Time toBuy a Home!

Sources: National Association of Realtors, KW Research