According to the RMLS Market Action Report, Southwest Washington homeowners saw a drop of 5.2 percent in Average Sale Price when comparing figures from Dec. 2008 to those of Dec. 2009. Portland homeowners saw a 3 percent decrease.

This graph, courtesy of the RMLS, shows the average sale price of homes in Vancouver and Southwest Washington since 1999.

The good news in the report is that inventory continues to decline. Fewer homes on the market could lead, ultimately, to increasing demand and therefore increasing prices.

However, some people are speculating that we could experience a “double-dip” recession. If you couple that with declining home equity, exploding ARMS resulting in increasing loan defaults, a tight credit market, and continued high unemployment (12 percent) throughout the area, it’s very possible that we will have a flat or declining market again this year. Time will tell.

If you like tracking housing prices, this is a good resource: HousingTracker.net

Shameless plug alert: If you’re feeling the pinch of a declining home value but also are pinched on space, maybe it’s a good time to consider an addition or renovation. Take a look at the values of renovation projects, then contact us for a free consultation. 😉