May 2016 Portland Real Estate Market Wrap Up
Thank you ladies from "Broad City" for exemplifying my gratuitous use of GIFs. Won't stop. Can't stop. (This is really my way of trying to make boring data that I find very exciting interesting to everyone else. Does it work?)
On to the report:
May looks a lot like April. It is still a strong seller's market with low inventory and endless demand to live in and around the Rose City. We are now in the heat of the selling season and, fortunately for all, more homes are coming on the market (great for buyers - more to see!) but also more buyers to compete with (see the spike in pending sales below since December).
The trend continues for homes to be selling faster (average of 22 days which is a decrease from last month's 28 days) and for more dough (see average price per square foot and percentage of listing price a seller is getting - 102%!). However, this increase in inventory has been a ray of sunshine for our buyers who are happy to see many more great homes come on the market.
So, buyers... how do you compete? First of all, take your broker's advice. I know that sounds self-indulgent coming from me, a broker, but I mean it. Every market is completely different. This Portland market is wildly different than it was a year ago, 5 years ago, 20 years ago. We are in the trenches every day and see what is working.
Ok, the next thing to do is to never give up. I say this every month and I will continue to. The only buyers of ours who have not ended up with keys in their hands are the ones that gave up. A colleague here at Living Room Realty sent an inter-office email with a great graphic illustrating this. It was essentially 20 "no's" in a row and then a final YES! Perseverance is the key to keys, y'all.
So, tune into this monthly report for A) a Portland Market Report and B) a Pep Talk.
Email me if you there's a specific topic you'd like me to explore next month at: Ross@livingroomre.com
By the way, this is how keys work:
Also, Portland fun fact: Which primary influencer of Bob Dylan lived in a small apartment in Lents and wrote 30 songs back in 1941? Click here for the answer.
Here is a chart of all homes for sale, pending for sale, and sold in Portland, Oregon for the last 15 months:
In April 2016, inventory grew, closed sales decreased slightly, while pending sales continued it's upward climb. In April, there were 1025 homes on the market, 852 homes sold, and 1187 were pending for sale.
Homes for sale (Inventory):
Up 19.2% compared to last month.
Down 18.9% compared to last year.
Home sales closed:
Down 9% compared to last month.
Down 21.5% compared to last year.
Homes pending:
Up 18% compared to last month.
Down 3.8% compared to last year.
Chart for average price per square footage:
In the past 15 months, the average price per square foot in Portland, Oregon has been between $189 and $229. In April 2016, the average price per square foot in Portland was $229.
Price per Sq. Foot in Portland, OR:
Up 3.2% compared to last month.
Up 10.6% compared to last year.
Days on market and sold/list price %:
This chart is showing us two things. First, how many days on the market that a home is spending, on average, before being sold. In all of Portland, in all price ranges, a home is taking, on average, 22 days to sell. Secondly, this chart shows us at what percentage of listing price the home, on average, is selling. This is a great indicator of pressure on prices.
In April 2016, sellers were getting, on average, 102% of their original asking price.
Average Days on Market:
Down 21.4% from last month.
Down 40.5% from last year.
Sold/Original List Price Ratio:
Up 1% from last month.
Up 2% from last year.
Average price for sale vs. average price of sold:
In April, 2016, the average price of a home that sold was $430,000. The average price of a home that was listed was $615,000. This does not mean that a home that was listed for $615,000 sold for $430,000. The listed homes didn't necessarily sell. For the sold/list price percentage average, look at the 'Days on Market' graph. In April 2016, this figure was 102%.
Average Price of a Home Listed:
Down 0.6% from last month.
Up 16.9% from last year.
Average Price of a Home Sold:
Up 1.7% from last month.
Up 10.3% from last year.
Months of inventory gives a timeline of how long it would take for all of the current listings to sell. Anything above 6 months is considered a buyer's market, 3-6 Months is a balanced market, below 3 months is a seller's market. In April 2016, this figure was 1.2 months based on closed sales. This does NOT mean that it will take, on average, 1.2 months for your home to sell. That number was, on average in all price ranges, 22 days. It means that, if not a single new listing were to come on the market in Portland, it would take 1.2 months for all available homes to sell before there would be none left. It is a very strong seller's market.
Months of Inventory Based on Closed Sales:
Up 32.7% from last month
No change from last year
This is a comparison of the past 15 months (including a percentage change analysis for the last 12 months) for all of Portland and are taken directly from the RMLS. What follows is my own analysis of these statistics. For our purposes, I thought it best to analyze Portland as a whole. Each neighborhood, however, is a little micro-universe and has its own market. Changing the parameters of the zip codes, price variables, or time periods can lead to very different results. This analysis is of all homes sold in all price ranges in Portland, Oregon. If you have any questions about specific zip codes, or any questions about the market in general, please reply to this forum with those questions or feel free to contact us.
This information doesn't matter if you have a particular neighborhood in mind since Portland neighborhoods are their own micro-markets. If you have one in mind to buy or are selling your home, please request a report for that neighborhood and I am happy to send it to you.
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