Portland Real Estate Market Update 12/2016
Portland metro experienced cooler activity in November, compared to both last month and November 2015. Closed sales (2,434) ended 13.1% ahead of November 2015, despite a 6.0% decrease from October 2016. This was the strongest November for closings in the area since 2005, when 2,623 closings were recorded for the month. Pending sales (2,266) decreased 9.5% from November 2015 (2,504) and 20.2% from October 2016 (2,841), though these pending sales are higher than in November of prior years. Similarly, new listings (2,080) fell 3.2% short of the 2,148 new listings offered last year in November 2015 and 29.0% short of the 2,929 new listings offered last month in October 2016.
Home prices continue to rise in the Portland metro area. Comparing 2016 to 2015 through November, the average sale price rose 11.7% from $353,400 to $394,800. In the same comparison, the median sale price rose 13.4% from $306,000 to $347,000.
Closed sales increased in November, the first month-over-month increase since March of 2016. However, year to date closed sales are down 1.4%.
Portland metro inventory decreased slightly in November to 1.8 months. During the same time, total market time gained a few days, landing at 45 days. There were 4,354 active residential listings in the region in November. Inventory remains constrained in many areas and price ranges.
November showed a historically strong number of closings. However, with the lower inventory levels and pendings in November, closings will slow in next 60-90 days.
So where is the Portland market headed? I see a continuation of the current trends: though inventory will increase modestly in 2017, it will not be enough to meet buyer demand, especially at the lower price points. First time buyers will be out in force, facing the twin challenges of affordability and financing. Strong job and population growth will continue, fueling the economic engine. Construction of new single family homes and apartments has increased, but not enough: the supply side is still constrained, leading to rising prices. However, with prices rising ahead of wage gains, expect the rate of increase to moderate in 2017.
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Information from Assoc of Realtors/RMLS. Data is deemed reliable and is not guaranteed accurate.
John Van Hogen - Principal Broker - Licensed in Oregon
Keller Williams Realty Profes. 9755 SW Barnes Rd #560 Portland OR 97225
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