Hello happy home sellers and brave home buyers, welcome to the new Portland Real Estate Market Wrap Up for April 2016. The March numbers are in and I can’t remember seeing a chart that looked quite like this. Pending sales are through the roof while closed sales and current listing numbers are about even. So, what does this mean?
It means we are now in, perhaps, the most competitive real estate market that Portland has ever experienced. Why is this the case? Easy – everyone wants to live here. Seriously. Check this article from CNN Money from a few months ago about it. Some blame Fred Armisen and Carrie Brownstein. But hey people, Carrie has left the city for Los Angeles, so I don’t know what to tell you.
At the beginning of this post, I called sellers happy. Indeed they are. On average, homes are selling in Portland for 101% of listing price. This is an average so, of course, some are selling for 17% higher and some for 10% lower but this still gives an indication of pressure on prices — UP.
Natalie Wood looks convinced but I am not as fundamentals are strong. Buyers are either all cash or extremely well qualified for loans. This is unlike back in the old days where, if you could fog a mirror, you could have a loan for as much as you want. Plus, we are talking about supply and demand. During the Great Recession, construction all but stopped in Portland while people continued moving here. Now we have very low supply and huge demand for Portland real estate. Check out Portland super real estate lawyer Phil Querin’s thoughts on the subject of a Portland real estate bubble.
So buyers be brave. It wouldn’t be so competitive if this wasn’t the greatest city you could possibly live in (It’s my opinion. But also, coincidentally, a scientifically proven fact). I love this place and it is for good reason. Mountains, Ocean, Food, Music, Art, and unlimited hipster sports (Pickle ball anyone?).
Pep talk time: Buyers, do not despair! Us agents know how to craft offers that are really compelling for sellers to accept. Sometimes other terms are more important than money. We often have buyers winning competitive situations where they aren’t the highest offer. We also frequently have sellers who choose buyers who aren’t the top $-wise. Hire an incredible agent and create an offer that is a massive win-win for both sides and you will have keys in your hand. By the way, this is how keys work:
PORTLAND REAL ESTATE GRAPH OF ALL HOMES FOR SALE, PENDING, AND SOLD IN PORTLAND, OREGON FOR THE LAST 15 MONTHS
Click the image for the full report
In March 2016, inventory remained steady (low!) and closed sales jumped while pending sales spiked. In March, there were 860 homes on the market, 855 homes sold, and 1062 were pending for sale.
Homes for sale (Inventory):
Up 4.8% compared to last month.
Down 35.5% compared to last year.
Home sales closed:
Up 34% compared to last month.
Down 4.8% compared to last year.
Up 21.9% compared to last month.
Down 8.9% compared to last year.