Portland Real Estate Market: Economic growth drives home sales

Good news from the RMLS across the data fields for the month of June: The number of closed sales in the Portland real estate market is up over 4% from last year, the number of days on market continues to fall, and the average and median sales prices in Portland for June 2014 were both up nearly 9% from June 2013.

In terms of pending sales, months of inventory and new listings, things are pretty much the same as last year, says the RMLS report. Nobody’s complaining: Portland’s real estate market is stronger than other metros across the country, and we remain a popular place to relocate to. Meanwhile, locals are moving up to bigger homes or building new.

The Oregon Measure of Economic Activity report, released last week by University of Oregon economists, helps explain why the real estate market in Portland is weathering the summer so well.

The report takes an overall reading of the economy, taking into account dozens of metrics, from new home construction to the number of hours workers are getting at their jobs. It found that unemployment claims fell in major metros across Oregon, including Portland. In fact, hiring actually increased in Portland, especially in the fields of finance and manufacturing.
Because this growth is based on the labor force beginning to grow again, the report concludes that that economic growth in Oregon will not only continue, it will keep up its above-average pace.

What is it about a strong economy that drives people to buy and sell homes? Real estate is always a good investment, for Portland residents of all ages and income levels. Owning a home instead of renting one makes sense for many reasons – personal, financial, and logistical. And summertime is always a great time to shop for or sell a home.
For more data from the RMLS, check out the June Market Action Report (the report always covers the last full month of data, with useful comparisons to the same month the year before, as well as year-over-year comparisons). You can subscribe to receive these reports by email every month through the form available here.

And, as always, if you’re not sure what the numbers mean or how to interpret them, I’m always a phone call or an email away. Market information is important, but so is accurate representation by an experienced Portland real estate agent – whether you’ve bought and sold a dozen homes or none.