Portland Real Estate Condo Market, 2022
Recent history. The Portland condo market took an absolute beating in 2020 after slowing down for years prior to the start of the pandemic. While the single family real estate market in Portland started booming by fall 2020 and hasn’t stopped skyrocketing (until very, very recently), the condo market in 2021 saw modest gains and recovery from an absolute frigid 2020. Now the condo market in Portland, having lived through the early stretches of the pandemic and the downtown riots that followed, is finally stable again in 2022.
However, did the Portland condo market recover just in time for the greater real estate market to drop?
Looking at the Utterly Terrible 2020 Portland Condo Market
For much of 2020, only one out of five, or one out of four condos would sell. The number of active condos for sale at a time peaked at well over 800. We sounded the alarm in 2020 and 2021, that now was the time to pick up a condo.
Recovery Started in 2021 and Continued to Today
Condos finally started selling in 2021 and inventory went down to more reasonable levels. In 2022, condo inventory dropped even further, causing the majority of condos that went up for sale to close.
All Buyer Traffic is Down in Q2 of 2022
Rising interest rates has had an immediate dampening effect on home and condo buyer traffic. RMLS provides us with weekly buyer traffic reports and for May of 2022, they have been down roughly 15% a week from 2021. This will soften the summer 2022 Portland condo market.
Steadily Declining Condo Inventory Led to its Recovery
Below statistics provided by Fidelity Title of Portland.
After Condo Price per Sq. Ft. Bottomed Out in 2020, it has Steadily Risen to Today
State of the Current Portland Condo Market
All Portland condo inventory smashed into four categories, right now $900,000 would purchase a 1,831 sq. ft. condo with two bed and two baths. That unit has likely been on the market for 56 days. $515,000 would purchase a 1,326 sq. ft. condo with two beds and two baths, on the market for 49 days. $399,000 would purchase a 993 sq. ft. condo with two beds and one bath, on the market for 28 days. $275,000 would purchase a 735 sq. ft. condo with one bed and one bath, on the market for an average of 21 days.
Portland Real Estate Condo Market 2023 Forecast
Two mortgage rate hikes have already slowed buyer traffic and plenty of additional hikes are planned for the remainder of 2022. Since the early hikes have already dampened traffic, it seems highly likely that additional hikes with have a multiplying effect. Thankfully, the Portland condo market fully recovered prior to these rising rates and is much more resilient now than it was in 2019 before the dramatic events of 2020. Low inventory across the board and rising rents will keep the Portland condo market afloat into 2023, higher rates or not. Condos will take longer to sell in 2023 and will likely only experience modest price gains from Q2 2022 into the next year. For an early 2023 Portland condo market forecast, we’d expect prices to rise 3%. For the remainder of 2022 (not counting the price gains already achieved in Q1) I’d expect prices to remain flat with slight increases this summer offset by slight price drops in the fall and winter.
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Portland Condo Experts
Licensed since 2003, my top-ranked team of buying and selling agents have helped Portland condo sellers and buyers in every high rise and complex of significant size that I’m aware of. If you have a condo to sell or are thinking of picking up a unit, give us a call today at 503-714-1111.May 27, 2022