Strong demand fuels soaring Portland house prices: median selling price jumps $ 15,000 in one month
Hope may be on the horizon for homebuyers: more residential properties are expected to go up for sale in the near future. months ahead and the price spike could stabilize slightly as some owners on the sidelines enter Portland’s still competitive market, experts say.
But other factors, like record levels of home inventories and a wave of motivated first-time buyers, will keep sellers in the seat of power.
John L. Scott’s real estate agents have been told by company CEO J. Lennox Scott that the “spree” demand to buy a home remains in the Portland area.
Adding to the tension: The number of existing homes put on the market in May was down 2.3% from April, according to the latest report from the Regional Multiple Listing Service (RMLS).
The total number of new registrations – 3,971 – in May was lower than expected in a month starting on a Saturday and ending with a holiday weekend, Scott said.
But the announcements reported a 16.1% jump from May 2020, when owners were reluctant to hold open houses or relocate during the first months of the COVID-19 pandemic.
Sellers were active last month, accepting 9.3% more offers than in April. More acts also changed hands in May: 8% more than in April and 62.1% more ballistics than in May 2020, according to the RMLS.
The median selling price in the Portland metropolitan area jumped $ 15,000, or 3%, from $ 500,000 in April to $ 515,000 in May, according to the RMLS.
Home buyers‘ preference for expanded living spaces, indoors and outdoors, continues to ensure that budget homes in sought after areas receive multiple offers.
For example: A mid-century modern house designed by architect Saul Zaik in the hills of the southwest sold for $ 164,000 above its asking price of $ 1.1 million on May 14.
Trisha highland, a broker for John L. Scott Woodstock, said economists aren’t predicting the end of the escalation in offers in the greater Portland area anytime soon.
“Bidding wars are fueled by old-fashioned supply and demand,” she said.
News that the The Federal Reserve could raise its benchmark rate in the short term twice by the end of 2023 keeps buyers motivated to lock in mortgage interest rates at their lowest.
A 30-year fixed rate mortgage was 2.93% since June 17, giving buyers more purchasing power. An additional sale price of $ 10,000 adds $ 35 – roughly the cost of a dinner – to a monthly mortgage payment.
The state’s growing population, the September 2020 wildfires that destroyed more than 4,000 homes in Oregon, and the lack of new construction are adding to the anemic number of homes for sale. Oregon has long had the the biggest housing shortage in the country, according to Federal mortgage loan company or Freddie Mac.
“There are so many factors that have gotten us to this point that the inevitable market correction is going to look more like a large ship turning slowly, not the speedboat making a sharp 180 that we saw in 2008,” said Highland.
The stock of homes for sale fell again in May, this time to 0.7 months, the lowest level in the RMLS’s 30-year history. A market is considered balanced between buyers and sellers when there is four to six months of inventory.
If sales continue at the same rate, 0.7 months of inventory means it would take less than three weeks to zero all the homes available on the market.
Since June 2020, the supply of homes for sale has been slowing down around a month, according to the RMLS.
Inventory is calculated by dividing active residential listings at the end of the month by the number of sales made for that month. The active residential listings figure includes homes that are offered and under construction.
New announcements: The 3,971 metro-Portland homes introduced to the market in May were down 2.3% from 4,065 new listings in April, according to the latest RMLS report. New registrations last month marked a 16.1% increase from 3,419 new registrations in May 2020.
Pending sales: In the Portland metropolitan area, the 3,717 homes that received an accepted offer in May reported a 9.3% increase from April and a peak of 19.4% from May 2020, according to the report.
Closed sales: In May, 3,183 residential properties in the Portland metropolitan area were sold – an 8% increase from the 2,946 that closed in April and a 62.1% jump from the 1,963 May 2020 closures, according to the report.
Time to market: The average length of time to sell Portland subway residential properties last month before receiving an acceptable offer has fallen to 22 days.
– Janet Eastman | 503-294-4072
Want to research real estate listings in Oregon and use local resources? Click here.