All the real estate numbers from RMLS Portland Market Action Report October 2016, plus our analysis.
The October 2016 RMLS Portland Metro Market Action Report is out, and seasonal cooling has set in.
Comparing October 2016 to October 2015, the Portland Metro real estate market cooled slightly with a decrease of -4.7 in closed sales. Inventory held steady at 2 months, home prices continued to rise, and homes sales slowed somewhat.
Southeast Portland was again the hottest area, with 309 closed sales in October. Other hot spots were West Portland (244 closed sales), Beaverton/Aloha (242 closed sales), Tigard/Wilsonville (241 closed sales) and Northeast Portland (212 closed sales).
October Market Highlights
Closed Sales (2,589) decreased 4.7% compared to October 2015 (2,717) and 8.3% compared to September 2016.
Pending Sales (2,841) decreased 5.2% compared to October 2015 (2,996) and 0.6% compared to September 2016 (2,857).
New Listings (2,929) decreased 4.4% compared to October 2015 (3,063) and 20.3% compared to September 2016 (3,673).
Inventory remained unchanged in October at 2.0 months.
Total Market Time increased in October by 6 days and is currently at 41 days.
Active Residential Listings in Portland Metro are currently at 5,169.
Average Home Price of homes sold through October 2016 ($393,900), compared to homes sold over the same period in 2015 ($353,400), increased 11.5%.
Median Home Price of homes sold through October 2016 ($345,000), compared to homes sold over the same period in 2015 ($305,000), increased 13.1%.
Let’s look at each of our three comparisons in more detail.
October-to-October in a Nutshell
October 2016 compared to October 2015:
- New Listings: -4.4%
- Pending Sales: -2%
- Closed Sales: -4.7%
- Average Sale Price: +8%
- Median Sale Price: +3%
- Total Market Time: -12.5%
October-to-September in a Nutshell
October 2016 compared to September 2015:
- New Listings: -20.3%
- Pending Sales: -3.2%
- Closed Sales: -8.3%
- Average Sale Price: +5%
- Median Sale Price: -0.1%
- Total Market Time: +1%
Year-to-Year in a Nutshell
Year-to-Date 2016 compared to Year-to-Date 2015:
- New Listings: +2%
- Pending Sales: -2%
- Closed Sales: +3%
- Average Sale Price: +9%
- Median Sale Price: 3%
- Total Market Time: -29.6%
October Overall in a Nutshell
New Listings Are Down & Down
New Listings decreased -4.4% compared to October 2015 and -20.3% compared to September 2016.
Pending Sales Are Down & Down
Pending Sales decreased -5.2% compared to October 2015 and -0.6% compared to September 2016.
Closed Sales Are Down & Down
Closed Sales decreased -4.7% compared to October 2015 and -8.3% compared to September 2016.
Home Prices Are Up & Down
Average Sale Price increased 12.8% compared to October 2015 and 3.5% compared to September 2016.
Median Sale Price increased 13.3% compared to October 2015 and decreased -0.1% compared to September 2016.
Total Market Time Is Up
Total Market Time increased in October to 41 days.
Total Inventory Is Down
Total Inventory remained unchanged in October 2016 at 2 months. (Six months of inventory is considered a balanced market, with fewer months of inventory indicating a seller’s market.)
Active Listings Are Down
Active Residential Listings decreased to 5,169 in October 2016, compared to 5,614 in September 2016.
Portland Metro Residential Highlights October 2016
Here’s a closer look at the October 2016 RMLS Portland Metro Market Action Report data:
Best Bets for 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 11.5% and 13.1% respectively compared to the same period in 2015.
Now is the time to buy, as prices are expected to continue the upward trend, with a 3.7% increase projected for 2017.
What we are experiencing as real estate brokers is that homes that are priced right are selling FASTER THAN FAST, often with multiple, and even cash, offers. While New Listings increased only slightly comparing year-to-year, Total Inventory is holding steady and Total Market Time is down significantly.
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 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 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.
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, 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.
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 Market Action Report September 2016
- 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’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
- 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
- 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
- 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
- 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.