Portland Real Estate Market, May 2022 Report – A Wild Ride
We live in interesting times.
The Portland real estate market was scorching hot in the first quart of 2022 with no end in sight for skyrocketing home prices and crazy bidding wars.
But mortgage interest rates are rising incredibly fast and in April we started to see the first slowdowns in the market. (Typically April is always hotter than March in Portland real estate, but probably not this year.)
Buyer Traffic is Dropping in Response to Rising Interest Rates
The above is for all Oregon homes listed in our local MLS, RMLS that is centered in Portland, Oregon. Buyer traffic typically never drops in April.
Inventory will Remain Low through Spring and Summer
There simply has been almost no inventory to speak of. It will take a long time before inventory returns to what might be considered reasonable levels. When the April RMLS report comes out in mid-May it will likely show a slight increase in homes for sale.
Low Inventory and Rising Rates will Crash Together this Summer
The two incredibly strong real estate market forces may create an equilibrium over time. It is hard to tell at this point. It does however seem clear that Q1 2022 will be a hotter sellers market than Q2, clear that things will likely get easier for home buyers this summer (in terms of home availability but not in affordability with rising interest rates), and that our normal cooler fall and winter real estate markets in the Portland area will be significantly better for home buyers, higher rates or no. (Spring and early summer is always the best time to sell traditionally in the Portland market, with fall and early winter the best time to buy.) See our reports on the best time to buy and sell real estate here.
Rising Home Prices in Portland so Far 2022
Using the most recent RMLS report, we compared Average Sale Prices in all four of the city’s quadrants from February and March of 2022, and here’s what we found.
|Average Sale Price – March 2022||Average Sale Price – February 2022|
According to RMLS, the average sale price has increased 10.4% when comparing 2022 to 2021 through March, with median sale price increasing 11.1%.
A further comparison of Portland’s Average and Median Sale Prices also shows the steady rise across the board.
New listings increased 1.6% to 3,521 from the 3,465 listed in March 2021. In the past month, from February 2022, new listings increased 37.0% from the 2,571 (which is typical, you get more inventory as the spring market approaches each year).
RMLS also reports Average Days on the Market for homes in West Portland at 48 with the other three quadrants at 26-27 days.
Portland is Seeing an Increase in Closed Sales
As we would expect this time of year, closed sales increased 5.0% to 2,683 from the 2,556 in March 2021, with an increase of 38.4% from 1,939 closings in February 2022.
Portland Real Estate Prices Will Likely Keep Climbing (at a slower pace)
Fidelity National Title’s Market Action Index is a good visual of what the Portland market is doing right now. With sales continuing to surpass inventory, we can expect see a rise in prices as long as the trend continues.
While it may be tempting to hold out and try to get more for your home, keep in mind that buyers are trying to outrun the rising interest rates. So, as we say above, now might be the best time of the year to sell.
Condos are Selling Faster than They Were in 2021
Condos in Portland are taking longer to sell than single-family homes with an average of 80 days on the market.
However, they’ve moving faster than they were at this same time in 2021 with a 150+ day average.
As we can see below, though, the inventory of Portland condos right now, compared to this time in 2021, is much lower, and the gap between supply and demand is smaller.
With rising mortgage rates though, it is hard to say if the Portland condo market will continue to improve.
Ready to Sell a Home in Portland?
Why not take advantage of the current hot seller’s market (while it lasts)? Give us a call at 503-714-1111 or chat with the bot on our site. Our top 1% seller’s agents are happy to help you get the most for your home with a reasonable 4% commission max. rate and a high-profile marketing strategy. We’ve been selling homes in the Portland metro area for 19 years now, so we know our way around the city. Let us help you on your real estate journey!April 20, 2022