The August 2014 RMLS Portland Metro Market Action Report is out, and the numbers are interesting. The Portland real estate market is steadily on the rebound when we compare numbers across key indicators Year-to-Year and August-to-August. But when we compare numbers across key indicators August-to-July, that rebound appears to be faltering—or perhaps simply stabilizing for the long haul. Let’s take a look at each of our three comparisons in more detail.
August-to-July in a Nutshell
The Portland real estate market faltered in August. Perhaps we have hit that balance point where buyers tap the brakes and sellers adjust their price expectations in response. This interruption in the upward trend could indicate a return to normalcy in the local market. Sellers appear to be wavering. New Listings decreased a whopping 9.4% compared to July. Buyers appear to be wavering as well. Pending Sales and Closed Sales decreased (-3.5% and -3.4% respectively). Average Sale Price and Median Sale Price decreased slightly as well (-1.4% and -1.0% respectively). Total Market Time ended its several month decline and rose from 57 days to 63 days, a significant 10.6% increase.
August 2014 compared to July 2014:
- New Listings: -9.4%
- Pending Sales: -3.5%
- Closed Sales: -3.4%
- Average Sale Price: -1.4%
- Median Sale Price: -1.0%
- Total Market Time: 10.6%
August-to-August in a Nutshell
With our August-to-August comparison, we see a significant upward trend (5%-10%) in the Average Sale Price, Median Sale Price and Total Market Time indicators, a more modest upward trend (under 5%) in the New Listings and Pending Sales indicators, and a slight dip in the Closed Sales indicator.
August 2014 compared to August 2013:
- New Listings: 4.6%
- Pending Sales: 3.4%
- Closed Sales: -1.4%
- Average Sale Price: 5.6%
- Median Sale Price: 6.8%
- Total Market Time: -8.1%
Year-to-Date in a Nutshell
With our Year-to-Date comparison, we see a skyrocketing upward trend (above 10%) in the Total Market Time indicator, significant upward trend (5-10%) in the Average Sale Price and Median Sale Price indicators, modest upward trend (under 5%) in the New Listings, and Pending Sales indicators, and a slight downward trend (under 2%) in the Closed Sales indicator.
Year-to-Date 2014 compared to Year-to-Date 2013:
- New Listings: 4.1%
- Pending Sales: 0.1%
- Closed Sales: -0.8%
- Average Sale Price: 7.6%
- Median Sale Price: 7.5%
- Total Market Time: -15.7%
August Overall in a Nutshell
Closed Sales Are Down & Down
Closed Sales decreased 1.4% compared to August 2013 and decreased 3.4% compared to July 2014.
Pending Sales Are Up & Down
Pending Sales increased 3.4% compared to August 2013 and decreased -3.5% compared to July 2014.
New Listings Are Up & Down
New Listings increased 4.6% compared to August 2013 and decreased -9.4% compared to July 2014.
Home Prices Are Up & Down
Average Home Price increased by 5.6% compared to August 2013 and decreased 1.4% compared to July 2014. Median Home Price increased by 6.8% compared to August 2013 and decreased 1.0% compared to July 2014.
Inventory Is Up
Inventory increased slightly in August to 3.0 months, compared to 2.89 months in July. Six months of inventory is considered a balanced market, with fewer months of inventory indicating a seller’s market.
Total Market Time Is Up
Total Market Time increased to 63 days in August, compared to 57 days in July, 59 days in June, and 67 days in May.
Active Listings Are Up
There are currently 7,784 Active Residential Listings in the Portland Metro area, compared to 7,727 active listings in July.
August 2014 Data
Here’s a closer look at the August 2014 RMLS Portland Metro Market Action Report data:
Buyers: Homes that are priced right are still selling fast. Total inventory levels increased slightly, even while new listings decreased significantly. It’s officially a seller’s market. To get the home of your dreams, know what you want and be prepared to leap when you find the home that meets your criteria. Tour the market, scour our Home Search pages (by neighborhood, style, address, map, price, listing number, new listing, or custom criteria), get preapproved for a loan, and prepare (along with your broker) to pounce when the home and the price are right. Your best bet is to set up a Market Alert, itemizing your home search criteria. You’ll be notified as soon as a new listing with your criteria hits the market.
Sellers: Even though we are still in a seller’s market, the numbers this month indicate that the market may be self-correcting. Pending and closed sales are both down, as are average and median sale prices. This is no time to ignore the trends and ask for the moon. Along with your listing broker, do the research and heed your competitive market analysis. Be realistic about your competition and price your home to sell fast. Homes than languish on the market for over 60 days are often overlooked altogether. Your best chance to sell your home for top dollar is in the first two weeks it’s on the market. PERIOD. If you price too high, agents and buyers will move on to more realistic offerings. If you price just right, you may get multiple offers, even above your asking price.
Whether you are buying or selling, give us a call today at 971-804-4618. We know the Portland real estate market, we’re top-notch listeners, negotiators, problem solvers, and marketing pros–and we’re here for YOU.
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- Buying a House in Portland in 2014: What to Expect in Real Estate | Oregon Live Front Porch
- Case-Shiller: ‘Sustained slowdown’ in home-price gains across US, in Portland | Oregon Live: Front Porch
- Current Market Conditions and Trends in Oregon Cities | HouseHunt
- In desire for homeownership, millennials not so different after all, study finds | Oregon Live: Front Porch
- Millennials Aging Into Major Players in Real Estate Market | Oregon Live: Front Porch
- Portland-area housing market closes unsteady summer with fewer sales, slower home-price gains | Oregon Live: Front Porch
- RMLS: Residential real estate activity cools off in August | Portland Business Journal
- What’s Right with Housing? | Calculated Risk