Portland Real Estate Market Report – February 2018
Portland February 2018 real estate market was surprisingly hot! We had an increase in $15,000 in median sold price since January 2018. Although average days on the market increased from 45 to 50 days since January, the median days on the market had decreased from 27 days to 23 days. That means although there are more houses that took a long time to sell, majority of homes were sold rather quickly within the 23 day range. This only means that the market is still hot for homes priced right. The inventory is still somewhat low although we are going to see a surge of inventories in March 2018 as we always do. The housing market data we will get in the next few months will be very crucial to determine where we are in Portland with our housing market slowdown. So stay tuned.
Condos and townhouses are having a slowdown compared to detached single family homes. For condos and townhouses, the average days on the market is 65 days and the median is 40 days compared to only 22 days of median for detached single family homes.
Where can one still buy a detached single family house in Portland for 300K? Look east of 82nd but you may still find one west of 205. Look into Lents, and parts of Montavilla south of Stark along 92nd, you will find homes for 300K but they are all starter homes around 1,000sf with 1 bathroom with 2-3 bedrooms. But you can find move-in ready homes. It’s better than renting still.
If you are thinking about buying, understand that the interest rate will increase quite a bit this year. For a 30 year mortgage, the rates are expected get closer to 5% at the end of 2018. So this early season is a great to buy and don’t wait to get on the train for too long. Your real estate agent will still need work fast with offers especially for homes below $350K because that will still get competitive. For homes over $500K, there will be more room for negotiation in 2018.
For home sellers, although things are a lot slower than 2017, remember this. It’s only because the price went up. Buyers are out there and if you need to sell your home rather quickly, pricing it competitively in today’s market is important. Pricing it too aggressively based on 2018’s value only means longer days on the market. You can still get more than last year’s value even if you price it right to sell quickly but I wouldn’t add onto what’s already today’s value with exuberance thinking the market will get hot in the spring. Many factors including lack of affordability and increasing mortgage rates will harness the growth this year.