Portland Real Estate Market Update August, 2022
Now that we’re into summer, a time when real estate sales typically increase, the biggest news is that we’re starting to see the slow turn toward inventory exceeding buyer traffic that we wrote about in July, 2022. With significant decreases in both pending sales (-27.5%) and closed sales (-16.8%) across the city, and inventory increasing 11.5% in the past month, this is the long-awaited shift from a scorching hot sellers market.
All said, though, we would typically expect to see an inventory increase this time of year. The notable difference is the decrease in sales across the board.
Portland Metro Home Prices Continue to Increase While Sales Decrease
The general consensus in the real estate world is that prices will continue to rise (although not as rapidly as they have been) throughout 2022 across the country due to rising interest rates, work-from-home scenarios, and an increase in inventory. We can expect to see the same play out here in Portland.
According to the most recent report from RMLS, the average sale price across the Portland metro area increased 9.9% to $618,500, up from $562,700 the same time in 2021.
The metro area also saw new listings decrease, but it was negligible—a mere 0.1% from the 4,298 listed in June 2021 to 4,295 in June 2022. The decrease in pending sales was more noticeable—27.5% from 3,534 accepted offers in June 2021 to 2,563 in June 2022. Additionally, closed sales also decreased—16.8% at 2,893 from the 3,477 closings in June 2021, with another decrease in total market time to 18 days.
The graph below gives a striking visual of the drop in pending sales, far below those in both 2020 and 2021. The drop is, in large part, due to the increase in interest rates, with buyer fatigue also being a factor.
Closed sales tell a similar story with significant drops compared to this time in 2021 and only slightly higher than what we saw in 2020.
Portland Real Estate Inventory Starting to Bounce Back
Slightly higher than what we saw almost a year go at this time, it looks like Portland’s real estate inventory is, in fact, starting to make a comeback, increasing from an average of 984 over a 7-day period at the same time in 2021 to an average of 1,375, per data from Fidelity National Title.
Decrease in Sales Across All Portland Quadrants
When we take a closer look at Portland proper, specifically at the city’s four main quadrants, we can see the significant decrease in sales—as much as -40.9% in north Portland! West Portland was not far behind with a 30.4% decrease.
|New Listings||Pending Sales||Closed Sales||Days on Market||Average Sale Price|
|N Portland||207||107 (-40.9%)||131||16||$551,600|
|NE Portland||424||243 (-23.8%)||287||17||$620,800|
|SE Portland||511||322 (-28.8%)||347||16||$554,800|
|W Portland||502||266 (-30.4%)||144||25||$802.400|
Portland Condo Real Estate Market
We’ve already written about Portland’s condo market, and things aren’t getting any better as we move into fall. As with single family homes, condo prices are also on a steady rise across Portland. The graph below indicates that current median condo prices are significantly higher than in both 2020 and 2021.
Portland’s condo inventory is rising fast after a steady drop, currently averaging 556 over a 7-day period, compared to 543 at the same time in 2021.
What’s most telling about the condo market in Portland is the comparison of active to closed condos, the image below showing a new level of stagnancy.
Looking to Sell or Buy a Home in Portland?
Considering the shift in the market, we can help you decide if now is a good time to sell your home or begin your search for a new home in earnest. Get in touch with our top 1% seller’s agents or our top 1% buyer’s agents today. Chat with the bot on our site or call us direct, and we’ll get to work to help you on your real estate journey.July 22, 2022