Portland Market Action Report November 2016

All the real estate numbers from RMLS Portland Market Action Report November 2016, plus our analysis.

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

Closed Sales (2,434) increased a whopping 13.1% over November 2015. November 2016 was the strongest November for closed sales in Portland Metro since 2005, when 2,623 closed sales were recorded for the month. Yahoo!

Pending Sales (2,266) decreased 9.5% from November 2015 (2,504) and 20.2% from October 2016 (2,841). However, pending sales are still higher than November in years prior to 2015. So cautiously optimistic here as November is an historically low month for pending sales.

New Listings (2,080) decreased 3.2% compared to November 2015 (2,148) and 29.0% compared to October 2016 (2,929).

Inventory decreased slightly in November to 1.8 months.

Total Market Time gained a few days in November, landing at 45 days.

Active Residential Listings hit 4,354 across Portland Metro in November.

Prices continue to rise in the Portland metro area. Comparing 2016 to 2015 through November, the average sale price rose 11.7% from $353,400 to $394,800. In the same comparison, the median sale price rose 13.4% from $306,000 to $347,000.

Year-to-Date numbers are mixed in 2016 compared to 2015. New listings (39,590) are up 1.0%. Closed sales (29,985) are down 1.4%. Pending sales (31,586) are down 3.7%.

Hottest Real Estate Market for November was Southeast Portland, with 290 closed sales. Other hot spots for closed sales were Tigard/Wilsonville (229), Northeast Portland (220), Milwaukie/Clackamas (198), and Gresham/Troutdale (179).

November Market Highlights

Closed Sales (2,434) increased 13.1% compared to November 2015 and decreased 6.0% compared to October 2016.

Pending Sales (2,266) decreased 9.5% compared to November 2015 and 20.2% compared to October 2016 (2,841).

New Listings (2,080) decreased 3.2% compared to November 2015 (2,148) and 29.0% compared to October 2016 (2,929).

Total Inventory decreased slightly in November to 1.8 months.

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

Active Residential Listings decreased to 4,354, compared to October at 5,169.

Average Home Price through November increased to $394,800 (11.7%), compared to the same period in 2015 ($353,400).

Median Home Price of homes sold through November 2016 ($347,000), compared to homes sold over the same period in 2015 ($306,000), increased 13.4%.

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

November-to-November in a Nutshell

November 2016 compared to November 2015:

New Listings: -3.2%
Pending Sales: -9,5%
Closed Sales: +1%
Average Sale Price: +6%
Median Sale Price: +7%
Total Market Time: -13.8%

November-to-October in a Nutshell

November 2016 compared to October 2015:

New Listings: -29.0%
Pending Sales: -20.2%
Closed Sales: -6.0%
Average Sale Price: -2.2%
Median Sale Price: +0.5%
Total Market Time: +8%

Year-to-Year in a Nutshell

Year-to-Date 2016 compared to Year-to-Date 2015:

New Listings: +0%
Pending Sales: -7%
Closed Sales: -1.4%
Average Sale Price: +9%
Median Sale Price: +7%
Total Market Time: -24.6%

November Overall in a Nutshell

Closed Sales Are Up & Down

Closed Sales increased 13.1% compared to November 2015 and decreased 6.0% compared to October 2016.

Pending Sales Are Down & Down

Pending Sales decreased 9.5% compared to November 2015 and 20.2% compared to October 2016.

New Listings Are Down & Down

New Listings decreased 3.2% compared to November 2015 and 29.0% compared to October 2016.

Home Prices Are Up & Up

Average Home Price through November increased to $394,800 (11.7%), compared to the same period in 2015 ($353,400).

Median Home Price through November increased to $347,000 (13.4%), compared to the same period in 2015 ($306,000).

Total Market Time Is Up

Total Market Time increased in November to 45 days.

Total Inventory Is Down

Total Inventory decreased in November to 1.8 months.

Active Listings Are Down

Active Residential Listings decreased in November to 4,354.

Portland Metro Market Highlights November 2016

Here’s a closer look at the November 2016 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, 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. New Listings increased (1.0%) comparing year-to-year, Total Inventory decreased to 1.8 months and Total Market Time decreased 24.06%.

It’s a seller’s market. To get the home of your dreams, know what you want and be prepared to LEAP and COMPETE 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.

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.

SkyBlue Portland Market Action Reports

Portland Real Estate in the News

Newest Articles

The S&P Corelogic Case-Shiller National Index Extends New High as Home Price Gains Continue | S&P Dow Jones Indices
Portland Is Growing Like Never Before. What Should We Do Next? | Portland Monthly
Portland home-price growth slows, still tops 10% year-over-year | Front Porch
More people are arriving: Oregon remains a top relocation spot, study finds | Front Porch
Portland’s cost-burdened renters pushed out of city center | Front Porch
Housing crisis took center stage in 2016, will keep it in 2017 | Front Porch
Portland’s streak leading the nation in home-price increases is over | Front Porch

Oregon Live

Portland’s streak leading the nation in home-price increases is over | 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
New development rules would limit home sizes, encourage density | Front Porch
Portland has nation’s highest year-over-year home price increases | Front Porch
Portland home values continue to grow at nation’s fastest pace | Front Porch
Portland homes’ annual price increases lead nation – again | Front Porch
Portland homes have nation’s highest annual price increases for 3rd straight month | Front Porch
Portland-area average home sale price breaks $400,000 | Front Porch
Portland-area housing market remains ‘remarkably tight’ | Front Porch
Ultra-low inventory slows down Portland-area housing market | Front Porch

Portland Monthly

19 New Facts About Portland’s Totally Insane Real Estate Market | Portland Monthly
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

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
Want to sell your house without a Realtor? Read this first. | Market Watch

Fitch Ratings

Where Are U.S. Home Prices Overheating | Fitch Ratings
Why Changes in Mortgage Rates Matter For House Prices | Fitch Ratings

Oregon Office of Economic Analysis

Another Housing Bubble? | Oregon Office of Economic Analysis
Portland Housing Update. Are Things OK? | Oregon Office of Economic Analysis

Additional

Are We Headed for a Housing Slump in 2016? | Money
How Cash Sent the Portland Home Market Spinning | Investigate West