Portland Real Estate Market Update
The market continues to change, and shows strength over time. The numbers are heading up and actually a lot more quickly than most expected. Instead of the 3-5% appreciation in home prices many experts predicted, we’re seeing gains of over 10% in most areas. A local appraiser recently said they are using a 12% appreciation rule for NE Portland homes. That means if a house sold for $400,000 a year ago, a comparable home would be worth $448,000 in today’s market!
The halfway mark for 2013 boasted a 17.3% increase in the number of closed sales over 2012 Portland wide. While the inventory remains very low, more homes are actually selling than ever. There were 3,751 new listing in Portland in June, which is up 16.9% from a year ago. The amount of inventory actually dropped from 3.9 to 2.9 months June to June, but keep in mind that reflects the increased rate of sale. Low inventory continues to spur prices up and there has been an increase of 13.8% comparing the first half of 2012 to the same period of 2013. Last year the average sales price was $265,900. This year the average sales price broke back through the $300,000 line and is currently at $302,700 across Portland.
In Portland, there was $12 billion in sales over the last 12 months, and it hasn't been that high since 2008. 46,901 homes were sold over the same period, which is a good deal more than in 2008. This means that even though nothing is staying on the market, a TON of homes are coming on the market and just being sold immediately. For buyers, there are a lot of homes to see and a lot for them to choose from (more than since 2008), but they just have to get there fast!
Our buyers are coached to act fast and be ready to go look at houses the day they hit the market. Meanwhile our sellers are enjoying reviewing multiple offers and being more stern throughout negotiations. As summer winds down and interest rates continue to tick up, we’ll see what kind of impact all the various factors have on the market. For now, as the nation’s economic recovery continues in full swing, it's safe to say most signs point toward a solid real estate market.