All the real estate numbers from RMLS Portland Market Action Report May 2016, plus our analysis.
The May 2016 RMLS Portland Metro Market Action Report is out, and the numbers are encouraging.
Comparing May 2016 to May 2015, the Portland Metro real estate market cooled slightly with a decrease of -1.6 in closed sales. Inventory is holding steady at 1.4 months, home prices continue to rise, and homes are selling fast.
Southeast Portland was again the hottest area, with 346 closed sales in May. Other hot areas were West Portland (311 closed sales), Beaverton/Aloha (284 closed sales), Milwaukie/Clackamas (240 closed sales) and Tigard/Wilsonville (236 closed sales).
May Market Highlights
Closed Sales (2,896) decreased 1.6% compared to May 2015 but increased 10.9% over April 2016.
Pending Sales (3,563) increased 0.5% compared to May 2015 (3,546) and 3.8% compared to April 2016.
New Listings (4,144) decreased 0.4% compared to May 2015 (4,161) but increased 1.5% compared to April 2016 (4,082).
Inventory remained unchanged in May at 1.4 months.
Total Market Time decreased in May by a few days and currently stands at 37 days.
Active Residential Listings in Portland Metro are currently at 4,003.
Average Home Price of homes sold through May 2016 ($383,000), compared to homes sold over the same period in 2015 ($342,300), increased 11.9%.
Median Home Price of homes sold through May 2016 ($334,200), compared to homes sold over the same period in 2015 ($295,000), increased 13.3%.
For the May-to-April comparison, all indicators are positive. For the May-to-May comparison, all indicators are positive except New Listings and Closed sales. For the Year-to-Year comparison, all indicators are positive except New Listings and Pending Sales.
Let’s take a look at each of our three comparisons in more detail.
May-to-May in a Nutshell
All indicators but two (New Listings and Closed Sales) are positive comparing May 2016 to May 2015.
May 2016 compared to May 2015:
- New Listings: -0.4%
- Pending Sales: 5%
- Closed Sales: -1.6%
- Average Sale Price: 1%
- Median Sale Price: 3%
- Total Market Time: -33.3%
May-to-April in a Nutshell
All indicators are positive comparing May 2016 to April 2016.
May 2016 compared to April 2015:
- New Listings: 5%
- Pending Sales: 8%
- Closed Sales: 9%
- Average Sale Price: 2%
- Median Sale Price: 3%
- Total Market Time: -14.0%
Year-to-Year in a Nutshell
Except for New Listings and Pending Sales, all other indicators are significantly improved comparing year-to-date 2016 to year-to-date 2015.
Year-to-Date 2016 compared to Year-to-Date 2015:
- New Listings: -1.8%
- Pending Sales: 6%
- Closed Sales: 3%
- Average Sale Price: 9%
- Median Sale Price: 3%
- Total Market Time: -29.6%
May Overall in a Nutshell
New Listings Are Up & Up
New Listings increased 1.5% compared to April 2016 and 0.4% compared to May 2015.
Pending Sales Are Up & Up
Pending Sales increased 3.8% compared to April 2016 and .5% compared to May 2015.
Closed Sales Are Up & Down
Closed Sales increased 10.9% compared to April 2016 and decreased -1.6% compared to May 2015.
Home Prices Are Up & Up
Average Sale Price increased 1.2% compared to April 2016 and 12.1% compared to May 2015.
Median Sale Price decreased 1.3% compared to April 2016 and 13.3% compared to May 2015.
Total Market Time Is Up
Total Market Time decreased in May to 37 days.
Total Inventory Is Unchanged
Total Inventory remained unchanged in May at 1.4 months. (Six months of inventory is considered a balanced market, with fewer months of inventory indicating a seller’s market.)
Active Listings Are Down
There are currently 4,003 Active Residential Listings in the Portland Metro area.
Portland Metro Residential Highlights May 2016
Here’s a closer look at the May 2016 RMLS Portland Metro Market Action Report data:
Best Bets for Buyers & Sellers
Buyers: Steady job growth combined with low but rising mortgage rates has created greater urgency to buy homes. The gains reflect a stronger economy but also the pressure to make a purchase before both home prices and cost of borrowing put homes out of reach for many buyers. The average and median sales price for Portland homes rose 12-13+% compared to December 2014. Now is definitely the time to buy, as prices are expected to continue the upward trend.Best Bets for Buyers & Sellers
Homes that are priced right are selling LIGHTENING FAST, often with multiple–and even cash or above appraisal–offers. Comparing year-to-year, New Listings, Total Inventory, and Total Market Time continue to decrease.
It’s a seller’s market for homes that are prepped, staged, well marketed, and well priced.. To get the home of your dreams, know what you want and be prepared to LEAP and COMPETE 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 buyer broker) to POUNCE when the home and the price are right.
To stay on top of new listings, 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 it’s a seller’s market, Average Sale Price and Median Sale Price are rising moderately month to month.. Plus, according to a recent analysis from Fitch Ratings, homes in the Portland market are already about 9 percent overvalued compared to levels Fitch considers sustainable.
Today’s savvy 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.
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.
Previous Portland Market Action Reports
- Portland Market Action Report January 2016
- Portland Market Action Report December 2015
- Portland Market Action Report November 2015
- Portland Market Action Report May 2015
- Portland Market Action Report April 2015
- Portland Market Action Report March 2015
- Portland Market Action Report February 2015
- Portland Market Action Report August 2014
- Portland Market Action Report July 2014
- Portland Market Snapshot June 2014
- Portland Market Snapshot April 2014
- Portland Market Snapshot Q1 2014
Portland Real Estate in the News
- Portland homes’ annual price increases lead nation – again | Front Porch
- Ultra-low inventory slows down Portland-area housing market | Front Porch
- Portland home values continue to grow at nation’s fastest pace | Front Porch
- New development rules would limit home sizes, encourage density | Front Porch
- Portland-area average home sale price breaks $400,000 | Front Porch
- Another record-setting month for Portland-area housing market | Front Porch
- Housing market cools slightly, but sales remain high and inventory low | Front Porch
- Portland has nation’s highest year-over-year home price increases | Front Porch
- Portland homes have nation’s highest annual price increases for 3rd straight month | Front Porch
- Portland-area housing market remains ‘remarkably tight’ | Front Porch
- Neighborhoods by the Numbers | Portland Monthly
- Portland Neighborhoods By The Numbers: Where to Buy in 2015 | Portland Monthly
- Where to Look for Real Estate Steals in the Portland Area | Portland Monthly
- Your Guide to Portland’s Crazy-Hot Real Estate Market | Portland Monthly
- 19 New Facts About Portland’s Totally Insane Real Estate Market | Portland Monthly
- Want to sell your house without a Realtor? Read this first. | Market Watch
- Does ‘staging’ a home lure buyers into paying more? | Market Watch
- How Long Can Portland, Ore., Homes Remain Relatively Affordable? | Market Watch
- Portland, Ore., Housing Market Is On a Record Roll | Market Watch
- Another Housing Bubble? | Oregon Office of Economic Analysis
- Portland Housing Update. Are Things OK? | Oregon Office of Economic Analysis
- Are We Headed for a Housing Slump in 2016? | Money
- How Cash Sent the Portland Home Market Spinning | Investigate West
Copyright 2016 James H. Bradley. All rights reserved.