Portland Market Action Report January 2017

All the real estate numbers from RMLS Portland Market Action Report January 2017–plus our analysis.

The January 2016 RMLS Portland Metro Market Action Report is out, and results are mixed.

The Portland Market Action Report January 2017 is out, and the numbers are once again mixed. The good news is that new listings rose a whopping 55.7% over December 2016. The bad news (for buyers) is that home prices rose 12%-13% over the course of 2016. And that trend is likely to continue through 2017.

Year-to-Date numbers comparing 2017 to 2016 are all down. New Listings (2,212) are down 12.2%. Closed Sales (1,847) are down 0.6%. Pending Sales (1,990) are down 11.3%.

Hottest Real Estate Market was once again Southeast Portland, with 220 Closed Sales. Other hot spots for closed sales were West Portland (197), Northeast Portland (180), Beaverton/Aloha (157), Milwaukie/Clackamas (149), and Tigard/Wilsonville (148).

January Market Highlights

Closed Sales (1,847) decreased 0.6% compared to January 2016 and 29.5% compared to December 2016 (2,621).

Pending Sales (1,990) decreased 11.3% compared to January 2016 and 13.3% compared to December 2016 (1,757).

New Listings (2,212) decreased 12.2% compared to January 2016 (2,519) and 55.7% compared to December 2016 (1,451).

Total Inventory increased slightly in January to 1.7 months.

Market Time increased to 45 days, compared to October at 41 days.

Active Listings decreased to 3,214, compared to December 2016 at 3,511.

Average Sale Price through January increased to $398,400 (12%), compared to the same period in 2016 ($355,600).

Median Sale Price of homes sold through January ($350,000), compared to homes sold over the same period in 2016 ($309,900), increased 12.9%.

Let’s look at each of our three comparisons in more detail.

January-to-January in a Nutshell

January 2017 compared to January 2016:

New Listings: -12.2%
Pending Sales: -3%
Closed Sales: -0.6%
Average Sale Price: 3%
Median Sale Price: 9%
Total Market Time: 2%

January-to-December in a Nutshell

January 2017 compared to December 2016:

New Listings: 7%
Pending Sales: -13.3%
Closed Sales: 5%
Average Sale Price: 2.7%
Median Sale Price: 0%
Total Market Time: 18.4%

Year-to-Year in a Nutshell

Year-to-Date 2017 compared to Year-to-Date 2016:

New Listings: -12.2%
Pending Sales: -3%
Closed Sales: -0.6%
Average Sale Price: 15.3%
Median Sale Price: 12.9%
Total Market Time: 2%

January Overall in a Nutshell

Closed Sales Are Down & Up

Closed Sales decreased 0.6% compared to January 2016 and increased 29.5% compared to December 2016.

Pending Sales Are Down & Up

Pending Sales decreased 12.2% compared to January 2016 and increased 13.3% compared to December 2016.

New Listings Are Down & Way Down

New Listings decreased 12.2% compared to January 2016 and 55.7% compared to December 2016.

Home Prices Are Up & Up

Average Home Price through January 2017 increased to $398,400 (12%), compared to the same period through January 2016 ($355,600).

Median Home Price through January 2017 increased to $350,000 (12.9%), compared to the same period through January 2016 ($309,900).

Total Market Time Is Up

Total Market Time increased in January to 45 days.

Total Inventory Is Down

Total Inventory decreased in January to 1.8 months.

Active Listings Are Down

Active Residential Listings decreased in January to 4,354.

Portland Metro Residential Highlights January 2017

Here’s a closer look at the January 2017 RMLS Portland Metro Market Action Report data:

Best Bets for Buyers

Steady job growth combined with still historically low but rising mortgage rates is creating greater urgency to buy homes. The gains reflect a stronger economy but also the pressure to make a purchase before both prices and cost of borrowing put homes out of reach for many buyers. The average and median sales price for Portland homes rose 11.6% and 11.7% respectively compared to the same period in 2015.

Now’s the time to buy, as prices are expected to continue the upward trend (12%-13% for 2016), with a 3.7% increase projected for 2017.

Homes that are priced right are selling FAST, often with multiple, above asking price, and even cash, offers.

It’s a seller’s market. To get the home of your dreams, know what you want and be prepared to LEAP and COMPETE with the help of your buyer’s agent when you find that perfect home.

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 price are right.

To stay on top of new listings, set up a Market Alert (or have us set one up for you), itemizing your home search criteria. You’ll be notified as soon as a new listing with your criteria hits the market.

Best Bets for Sellers

Even though it’s still a seller’s market, Average Sale Price and Median Sale Price are expected to increase more slowly in 2017. Additionally, per a recent analysis from Fitch Ratings, homes in the Portland market are already about 9 percent overvalued compared to levels Fitch considers sustainable.

Buyers are cautious, demand good value, and cross-shop homes rigorously to get the most for their money. In addition, appraisers are determined to avoid another housing bubble. It’s the bank that sets the appraised value of your home.

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 month it’s on the market. PERIOD.

If you price too high, brokers and buyers will move on to more realistic offerings. If you price just right, you may get multiple offers, even above your asking price.