2017 Market Recap
Portland inventory remains tight – recording 1.6 Months of Inventory (MOI). Anything below 3.0 MOI is considered a seller’s market with demand outpacing supply (and usually associated with price increases). 2017 was slightly different as prices remained relatively stable with the median list price in Portland proper staying in a range between $525,000 - $575,000 throughout the year. Portland’s current median list price (according to Altos Research) is $549,250 – right in the middle of the range. Interestingly, while prices may have stabilized, Portland’s Price per Square Foot peaked at $250/sf in December 2017 and remains at $246/sf – this barometer has shown steady growth over the last 3 years.
Home sales were sluggish as 2017 came to a close. December 2017 showed a 10% decrease in closed sales (versus December 2016) and the number of closed sales in all of 2017 was down 3.6% versus 2016. Decreasing volume is a sign of a slowing market – although it is also a sign of low inventory and a tightening market…
Interest rates continue to remain low with the 30-year fixed rate mortgage currently at 4.125%. Interest rates have bounced between 3.75% and 4.5% for over 5 years now – this stable credit market has been a big factor in fueling the real estate market. With rates creeping up lately some economists are predicting rising interest rates. Nothing new here – they have been predicting rising interest rates since I came in the business 15 years ago. I wouldn’t be surprised to see interest rates rise a bit – but anything below 5% is considered stellar and should keep affordability intact.
Early signs indicate 2018 will start off with a bang as cash and liquidity continue to fuel the market. Inventory appears to be lowering with buyer demand building up as we move into the peak Spring PDX season. Multiple offers and bidding wars are still the norm for “hot” homes. Look for prices to perk up as in-migration and a strong business climate pave the way.
Blog Archive2019-11-15 15:08:46
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January 2019 Report: What’s Ahead for Real Estate in 2019?
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