Portland Real Estate Market Update – February 2022

Not that we’re into the second month of 2022, we’re taking a look at the real estate market in Portland to see how stacks up against the past year, 2021, and month, Dec. to Jan. 2022, and what it might mean moving forward.

Fortune predicts that the upcoming national spring market will be “brutal,” compared to last year’s spring market, which they describe as “the fiercest in history,” all created by rapidly rising real estate prices and record-low inventories. They point out that the 19.1% increase between October 2020 and October 2021 is not sustainable. Something has to give at some point. Will 2022 be the year the Portland real estate market start to change?

See our 2022 Portland real estate market forecast here.

Let’s take a look at the numbers close to home and see if we can anticipate what to expect.

Is it Still a Seller’s Market in Portland?

2021 to 2022 Portland Real Estate Listings

A comparison of average sale price numbers between January 2021 and January 2022, using the most recent RMLS report, tell us that there was a 14% price increase ($514,700 to $586,600).

We also compared new listings, pending sales, and closed sales for the same time period, shown in the table below.

New ListingsPending SalesClosed Sales
Jan 20212,5792,4961,847
Jan 20222,307 (-10.5%)2,287 (-8.4%)1,853 (+0.3%)

The big story here is the complete lack of inventory. 2021 was a historically low inventory year and to start off 2022 we are already running 10% less inventory.

Dec. 2021 through Jan. 2022 Listings

A comparison of average sale price between December 2021 and January 2022 shows a 0.6% increase ($582,90) to $586,600). Typically there isn’t much price movement in winter months.

The numbers for the same time period for new listing, pending sales, and closed sales look like this.

New ListingsPending SalesClosed Sales
Dec 20211,5991,9422,582
Jan 20222,307 (+44.3%)2,287 (-8.4%)1,853 (-28.2%)

December typically is a low month for new listings given the holidays and sees a lot of closings from transactions that went pending earlier in the year. So the above chart doesn’t show anything too unusual.

Time on Market

From a year ago, time on the market has decreased by 13.5% (44 days to 38 days), yet it has increased by 17.2% within the past month. This increase is likely due to the lack of new inventory hitting the market while some stragglers hang on past the holidays.

Fidelity National Title confirms the data on number of days on the market.

Average Days on Market – Fidelity National Title

A look at the recent lockbox activity in all of Oregon also shows the increase in the movement of potential buyers to get out and shop for homes. There is a huge (normal) seasonal drop around the major holidays with a quick bounce back.

Image from RMLS

The reality, though, is that we’re still in a strong seller’s market, even more so than we were last month.

Image from Fidelity National Title

Interest Rates are on the Rise

As we’ve written in the past, mortgage rates are expected to rise this year. As of the writing of this article, Cnet.com reports a noticeable increase in rates within the past seven days: 3.98% for a 30-year fixed-rate mortgage (an increase of 21 basis points) and 3.34% for a 15-year fixed-rate mortgage (an increase of 19 basis points). That’s a significant increase when we consider the 2.68% we saw in 2020 and 2021 but still not close to what rates have been historically.

Condo Real Estate Market in Portland

While the condo real estate market in Portland is much cooler, it is improving from prior years and that will likely continue throughout 2022 due to extremely low inventory among detached homes.

Ready to Put Your Home on the Portland Real Estate Market?

If you’ve had the slightest inclination to sell your home, now’s the time to make a plan. (Read our best time of the year to sell, 2022 report here.) With a strong seller’s market and low inventory, buyers are moving fast. Let our top 1% seller’s team help you through the listing and selling process and get your home in the hands of an excited buyer. Chat with the bot on our site or give us a call at 503-714-1111 today.

February 18, 2022
AUTHOR

Stephen FitzMaurice

Stephen FitzMaurice, Realtor is a top 5% real estate agent in the U.S. A Principal Broker in Oregon, Managing Broker in Washington, he has been licensed since 2003 for residential real estate sales. Call his team in Oregon at 503-714-1111 or in Washington at 360-345-3833.

4% max to sell a home in Portland and SW Washington.
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