Portland home values increased in December 2018
Happy New Year! I hope everyone had wonderful holidays. Portland real estate statistics are out for December 2018. December 2018 has been surprisingly productive given the downward trend in Portland real estate market since the fall season. You are probably familiar with what every realtor is saying about the housing market these days. The increase in the interest rates has been a big factor in the housing market slowdown. As I have indicated in my previous month’s housing market report, we have seen an actual decrease in sold values from 12 months ago. December is the slowest real estate month for home sellers and real estate agents. As a realtor and housing market expert, I have been observing the trend and honestly I thought this December would see some worst numbers. Surprisingly, it wasn’t that bad. It was very similar to last year’s December but with higher median sold values. There has been another rate hike in December, which is probably what led a lot of people to rush and buy, locking in the rate before the hike. Our median home value from December is up by $15,000 since November 2019. For detached single family homes, the value went up to $428K from $415K in November. In terms of average days on the market and number of new listings, it was slow as expected. In December, we had 406 new listings compared to 693 in December 2017. Average days on the market was 52 days compared to 38 days in December 2017. Despite the slowdown, home prices are being resilient. The biggest reason for this is the lack of inventories in the Portland housing market. We are still only at 2.8 months of inventory for all housing types and 2.2 months of inventory for detached single family homes.
I am anxious to see what the housing market will look like in the spring of 2019. Many experts are saying that rates shouldn’t go up much anymore and some are even saying that rates should even be cut by 2020. We will just have to see what’s going on. At first, I was pessimistic but now I’m starting to think that there wouldn’t be any major downturns with the housing market in 2019. One thing I am starting to notice is that buyers tend to back out of deals more often these days after inspection. This is certainly an indicator that the market is changing and we are no longer in a strong seller’s market in general. It really depends on price points. For detached single family homes under $425K, it’s still a seller’s market as well as town homes under $300K.
I will keep things updated every month throughout this winter and spring season and see how things shape up in the housing market. If you are thinking about selling or buying, feel free to reach out.