Portland Housing Market Report – April 2017
April 2017 Portland housing market report is out. Like any April, this past month has shown increased market activities in terms of number of houses listed and pending compared to March 2017. For sold units, this April had less sold units during the month compared to March 2017. March of this year had 691 sold units whereas April had 643. This is partly due to the fact that sold units had been pending for at least a month prior and the low number is the result of selling activities from the previous month. It’s interesting to note that March had more than 150 units pending compared to February 2017 but resulted in less units sold.
So what has April been really like? It’s been rainy a lot. In 2016, April was a lot dryer and milder than this year. How much did the weather affect the market? Apparently not too much. Average days on the market in April 2017 is 24 days, one day less than April 2016. From my own listing, I have experienced a high buyer confidence. Buyers are still willing to pay good price for a home and generally they fear losing out a home by a competition. Yes, my listing had multiple offers and was sold quickly.
Let’s talk about the amount of inventories in April. 1067 homes were listed in Portland in April, which is actually about 80 homes less compared to April 2016. The amount of inventories being listed on the market has been about the same as last year. This means the inventories are still very low. Even though new construction homes are being built in the suburbs, Portland itself is not increasing single family home inventories due to the land being saturated. I do see some new construction homes east of 82nd Ave including low income subsidized housing, but it’s not enough to sustain the demand for Portland housing market. Most first-time buyers are pretty much priced out of inner Portland neighborhoods and they are faced with a decision of whether to stay in Portland and move east or north or to move out to a suburb such as Milwaukie.
Let’s talk about home prices. Even though 5.8% increase since last April does seem modest given the hot housing market in 2017, I do anticipate a big jump in the median price this spring. Looking at the median “listed” homes, not the median “sold” home value, I do see a big jump in the median price last month. The median went up from $429,900 in March 2017 to $460,000 in April 2017. This is the record number of median listed homes after the recession. This figure suggests that the Portland housing market is about to have another big increase in the median sold houses in the next month or two. The market is about to recover whatever fallbacks we had during the winter months and shoot back up. It is possible we have another double digit growth in the median house prices in 2017.