Portland Real Estate Market, January 2023
As we enter the new year, the most significant trend we’re seeing in the Portland real estate market is a marked slowdown in both home buying and new listings for sale. This is expected at this time of year when potential buyers and sellers are channeling their energy into holiday preparations and moving plans are typically put on hold. Check out the statistics that are shaping our current real estate market.
Inventory is Dropping as Expected
The number of homes on the market has continued to decline sharply since October, following its usual trend of tapering off as we approach the holidays. At the same time, inventory remains higher than it has been over the past two years.
Lower inventory is important. As we draw close to the holidays, buyers are continuing to pull back and there are still more homes for sale than there are buyers.
Buyer Traffic is Near Frozen
The chart below represents average weekly buyer traffic over the last few years. Statistics are from lockbox openings as recorded by RMLS and typically represent home showings. RMLS does not cover all of Oregon, but it does cover the entire Portland metro area and beyond.
|Oregon Weekly Buyer Traffic||Status||The Typical Season|
|More than 25,000||Hottest||Haven’t seen well over 25K since 2017|
|20-25K||Good||Usually March through August last few years.|
|15K to 20K||Okay||Jan, Feb, and Sept. through Dec.|
|10K to 15K||Cold||Uncommon, usually only as you approach and leave |
Christmas and New Years.
|Less than 10,000||Frozen||Usually only the week of Christmas / New Years|
Showings dropped to 11,315 in mid December, according to the latest available numbers. So buyer traffic is near frozen.
Due to Market Conditions, Less New Homes are Entering the Market
December listings have dropped to similar levels at this time over recent years. Less inventory is actually a good thing as we need to work through the current stock of available homes for sale with a less than usual amount of buyers.
But of course, less buyers and less homes for sale means:
Pending Home Sales are Down 43%
According to RMLS, pending sales are down 43.7% from this time period last year. So dropping sales are continuing to impact the Portland real estate market.
Low Inventory Combined with Lower Buyer Traffic is Reducing Housing Prices
As we can see from this price per sq. ft. chart from Fidelity, prices have been dropping since summer and continued to slowly decline in December 2022. Prices in the Portland real estate market will likely continue to drop for a month or so before the seasonal spring bump. (Even in down years, housing prices can rise in the spring. See the best time of the year to sell a home and buy a home, according to our annual research.)
The Highs and Lows in the Portland Metro Real Estate Market
Currently homes in Oregon City and Canby are selling the fastest, at 32 days on average. Homes in West Portland are staying on the market the longest, at around 56 days. And homes in Lake Oswego and West Linn have retained the highest sale prices at an average of $1,003,400, while homes in Columbia County average the lowest, at $412,200.
If you’re looking to buy a home.
We highly recommend our unique home search program with maps and tools you cannot (literally cannot) find anywhere else. We also recommend talking with Kami Price, Principal Broker licensed since 2004, a buyer’s specialist and market expert with years of experience. Her office would love to take your call and set up a no-obligation consultation. Give us a call at 503-773-0000.
If you need to sell a home.
We offer a reasonable commission rate of 4% max., which includes the buyer’s agent commission. We provide professional photos, 3D tours, and optimize online visibility so our client’s homes are seen more often and sell faster. In short, we do everything we can to ensure you enjoy a smooth transaction. Stephen FitzMaurice, Principal Broker, licensed since 2003 – a seller’s specialist and true expert for many years – would love to connect with you. His office will gladly take your call and set up a no-obligation consultation. Call 503-714-1111 today!December 26, 2022