Detached Single Family Home Median is Now 455K – Portland Real Estate Report, April 2018
April 2018 Portland real estate market report is out. The news from this market report is that the median price for detached single family homes in Portland has finally surpassed the 450K mark at 455K. This is the highest median value for detached single family homes in Portland. The combined housing market including condos and townhouses showed a modest growth from March by only $2,000. The condo/townhouse market brought the number down but due to the volatility from having such a small sample of sold properties (167 total), it’s not the most reliable indicator of the value increase in that sector of the market. Overall trend without outliers, condo/townhouse market has been growing at a much slower pace than detached single family home market.
May is the hottest month for real estate sales. Last May, the median home value went from 425K to 440K for detached single family homes. We will see the new high record home value next month. It could go up to about 470K. You may still be able to find a 2 bedroom bungalow home in inner SE & NE Portland neighborhoods with that budget. You won’t find anything in NW Portland. You can find some old ranch homes with the budget in some SW neighborhoods. Overall, there are decent options in Portland for around $450K budget. How many people can afford $450K nowadays? More than you think. Apparently, the housing market is still hot. There are lots of people ready to snatch up deals as they come up. Those folks earn higher than the median household income in Portland. There are still lots of new residents moving in from out of state where $450K is a bargain for a home.
How quickly are homes selling now? For detached single family homes, 23 days was the average days on the market. 6 days was the median so the bulk of homes are being sold within the first week. That is still hot. As for condos and townhouses, the average is 45 days on the market and the median is 19 days, which is significantly slower but not that slow overall.
Supply is still very low in the Portland market. This May, the City of Portland is holding a public hearing on the “Residential Infill Project.” Among other things, the project deals with whether to allow up to two ADUs per house. The City is adding lots of flexibility for new development housing and adding ADUs to improve housing supplies for both home buyers and renters. According to the City, by 2035, Portland will grow by more than 100,000 households. We are already starting see more homes being listed with a detached ADU, once a detached garage converted into a rental unit.
Interest rate is going up and if you are planning to buy and are otherwise ready, don’t wait. This is time to strike while the rates are still around 4.5%.