Sign of Relief for Home Buyers – Portland Real Estate Market Report January 2019
After a long and slow real estate market during the holiday season, Portland housing market in January 2019 turned out to be in a very favorable position for home buyers. Real estate agents are starting to get busy as more buyers are entering the market at the moment. We have a lowered mortgage rate at the moment from last year and we have a surge in the home inventory. The rates are expected to stay low for a period of time this year. This is exciting news for many home buyers in the Portland metro area who have been feeling the pressure of the increasing home prices coupled with increasing mortgage rates. The first quarter of 2019 housing market forecast is so far turning out to be very buyer friendly. Homes are staying on the market for a lot longer these days with average days of 58 days on the market. Once the spring comes around and the prices and rates stay reasonable, the buyers’ competition may heat up again as the demand goes up. But as of now, because this is still winter time and there aren’t that many home buyers quite yet, this is a great window of opportunities to get a good deal for home buyers who are ready, willing, and able. In fact, 727 units went under contract in January, which is about the same number of pending units from January 2018 when things were a lot hotter.
Let’s look at the numbers. This is for Portland only. For other areas like Beaverton and Hillsboro, email me and I can send you the data.
All Housing Types:
Median Sold Price: $399,450 (Compared to $401,500 in January 2018)
Average Days on the Market: 58 (Compared to 45 in January 2018)
New Listings in January: 1129 (Compared to 788 in January 2018)
Detached Single Family Homes:
Median Sold Price: $405,000 (Compared to $410,500 in January 2018)
Average Days on the Market: 57 (Compared to 44 in January 2018)
New Listings in January: 796 (Compared to 563 in January 2018)
Condos / Townhouses:
Median Sold Price: $337,400 (Compared to $359,950 in January 2018)
Average Days on the Market: 64 (Compared to 48 in January 2018)
New Listings in January: 333 (Compared to 225 in January 2018)
As you see, the market is slower than it was 12 months ago. Prices are even coming down slightly or have flattened. Moreover, we have a lot more inventory. These are all great news for buyers, not so much for sellers. For sellers, it’s important to notice that our housing market is now different, which is more normal. So long as the conditions stay favorable to buyers, it’s still good news for sellers because that means things are still moving.
It will be interesting to continue observing the market as we approach the spring season to see how much things become heated during the prime buying and selling time of the year so that we can have a good grasp of what the market truly looks like in 2019 and sense what kind of forecast and trends our housing market is ahead of us. As I have mentioned in my Portland housing forecast, the market is becoming a lot more buyer friendly as we speak. What I don’t know yet is how much of a buyer’s market it will turn out to be in the future. Portland metro’s job market is very strong. So long as the mortgage rates stay reasonably low, things are looking good for both buyers and sellers in coming years. If the economy continues to expand, the rates will go up. If the economy is bearish, the rates will stay low.