Big Slow Down – September 2018 Portland Housing Market Report
Real estate market statistics are out for September 2018. Portland real estate market took a big dip since August. The fall market is always slower with less people selling and buying and by November and December, it will be dead quiet as the inventory almost drops to quarter of what it was in the spring. So let’s talk about what happened in September in Portland real estate market. The median sold value dropped by $23K from the previous month. This time, not only the condo and townhome market but the detached single family home market took a big drop as well. Average days on the market increased by three additional days since August and we are at 36 average days on the market for all homes. Market is slow overall. There are certain neighborhoods that do better than others in this slow market. In September, east of 205 market has been really slow with too many inventories sitting on the market for too long. Houses around $300K still show activities but anything over $335K, it has been really slow. Inner SE and NE Portland markets have been doing much better this time of the year. Those neighborhoods will always be desirable areas for many people and so long as a deal comes by, it will be off the market sooner than later. Happy Valley has been pretty slow. The west side including Beaverton has shown lots of activities. Downtown condo market seems slow as of now.
Portland Real Estate Market Statistics – September 2018
Average days on the market: 36
Median days on the market: 19
Median sold price: $415K ($425K for detached SFR and $333K for attached/condos)
The interest rate as of now is around 4.875% for a 30 year mortgage, which is a significant jump from last year. Soon it will be over 5%. If you look at the numbers historically, this higher rate is more of a norm than an exception. The short lived 3% mortgage rate days have been the exception. Next year, mortgage rates will range from 5% to about 5.5% by the end of the year. Rates will keep increasing until we reach about 6% or so and after that all bets are off depending on where our economy is and what the inflation looks like. So 2019 will be a slower year for real estate and multiple bidding will be a thing of the past. However, with the amount of rent everyone is paying nowadays, buying is still a great option. Read more on 2019 housing market predictions.
It looks like the real estate market is on the way of its winter slowdown. October, November, and December won’t be much of a surprise but an expected downhill trend in terms of inventories amount and median sold prices. Once January and February comes, I will be really curious about how much momentum it will bring to the housing market but for now, everyone seems to be content with the upcoming holiday planning.