What’s Happening in the World of Portland Real Estate?
Growth: Onward and upward!
I am asked frequently if the “market is likely to cool” this year. And sometimes, the hopeful sounding, “Are we in a bubble?” is the follow up. Although I always hope for more inventory to ease buyer’s searching, I don’t foresee there being much downfall expected anytime soon. This is seconded by our companies’ chief economists.
Of course I like to see a strong market (Hey, I love my city and want to see it do well; plus not only am I a realtor depending on homes selling with profits and positive equity… I am also a home owner!), but the reality is that the market isn’t expected to drop off anytime soon. To buy a house at a fair price, will continue to take a bit of work— creativity, diligence, and negotiation.
The main reason is simply supply and demand. We have a large amount of inward-bound moves, and they all need somewhere to go. The increase of tech and medical jobs, and mild weather ( you have seen the news lately? East coast or CA seem a bit frightening this week!), are just some of the reasons why.
In the Numbers
To determine inventory for the area: We measure the current [active] properties for sale and state in months how long it would take for those to be absorbed by the market. A level of four to six months is considered a balanced market– meaning not weighing heavily towards buyer or seller markets: there are enough homes for sale for the amount of buyers shopping, not too much or too little. Towards the end of the year, we saw a slight upward climb, and honestly I hoped it would continue. That small rise from 1.7 months (in June 2017) to 2.3 (September 2017) was ” too short to be sweet”… as currently we are back at 1.6 months currently for the Portland Metro Area.
In fact, the 2.3 month inventory level that we saw briefly in September was the highest level in over two years. “This was the strongest December for new listings in the Portland metro area (1,617 new listings offered) since 2011.” As a whole, the appreciation tied to the tight supply and high demand is seeing levels of around an 8.5% increase in prices:
Source: RMLS Market Action™ January, 2018.
As always, if you have any questions, or are curious if buying or selling right now makes sense for you… just reach out to me! Just last week I had buyers get in contract on their dream home in Happy Valley— with a $15,000 price reduction, $5000 in new garage doors… and a home warranty to top it all off (and buyers don’t pay for a buyers agent… so hard to see a downside here!). There is hope for you too!
A great article for moving stats: