The June 2014 RMLS Portland Metro Market Action Report just hit, and there’s cause for celebration. Closed sales hit 2,617, a 4.2% increase over June 2013. This was the strongest June for closed sales in the region since 2007 when closed sales hit 2,731. Hive fives all around!
But while we’re all for measured optimism, the local market is in fact holding steady—not going wild. Year-to-date closed home sales for 2014 are only modestly ahead of 2013 at a 4.2% increase.
And while new listings (20,248) are up 4.4% compared to the first half of 2013, pending sales (14,705) and closed sales (12,518) are down 0.9% and 0.1% for the same time period.
June in a Nutshell
Buyers continue to pounce on available homes at a record pace. Total market time fell again in June to 59 days, even while inventory rose 4.2%. And although more sellers jumped into the housing market hoping to take advantage of high demand, both average and median sales prices held steady from May to June. This indicates that even though demand is high, buyers are not yet bidding up the market.
June 2014 compared to June 2013:
- New Listings: 8.7% (4,078 compared to 3,751)
- Pending Sales: 5.7% (2,965 compared to 2,804)
- Closed Sales: 4.2% (2,617 compared to 2,511)
- Average Sale Price: 6.7% ($334,800 compared to $313,900)
- Median Sale Price: 6.6% ($290,000 compared to $272,000)
- Total Market Time: -16.7% (59 days compared to 70 days)
First Half 2014 in a Nutshell
So far this year, 2014 is on a roll compared to 2013. On the PLUS side: Time on the market is down 17.9%. Home prices are up 8.7%. New listings are up 4.4%.
On the MINUS side: Pending sales are down 0.9%. Closed sales are down 0.1%. Will this upward trend continue? Will home prices continue to rise?
Will new inventory levels slow that rise? Will buyer demand soften as median incomes and median home prices continue to diverge? These are the million dollar questions. Let us know what you think in the comments below.
First Half 2014 compared to First Half June 2013: ·
- New Listings: 4.4%
- Pending Sales: -0.9%
- Closed Sales: -0.1%
- Average Sale Price: 8.7%
- Median Sale Price: 8.7%
- Total Market Time: -17.9%
Closed Sales Are Up & Up
June was a solid month for closed sales in Portland Metro, with increases of 4.2% over June 2013 and 5.4% over May 2014.
Pending Sales Are Up & Down
June pending sales rose 5.7% compared to June 2013 but fell .8% compared to May 2014.
New Listings Are Up & Down
June new listings rose 8.7% compared to June 2013 but fell 2.7% compared to May 2014.
Home Prices Are Up
For the first half of 2014, the average Portland Metro home price was $325,900. This is an increase of 8.7% compared to the first half of 2013 when the average home price was $302,700. For the first half of 2014, the median Portland Metro home price was $280,000. This is an increase of 8.7% compared to the first half of 2013 when the median home price was $257,500.
Inventory Is Stable
Inventory remains stable for the third consecutive month at 2.8 months.
Total Market Time Is Down
Total market time continued its downward trend to 59 days, compared to 67 days in May.
Active Listings Are Up
There are currently 7,250 active residential listings in the Portland metro area, compared to 6,858 in May.
Here’s a closer look at the June 2014 RMLS Portland Metro Market Action Report data:
Best Bets for Buyers & Sellers
Buyers: You snooze, you lose. Tour the market, know what you want in a home, get preapproved for a loan, and prepare (along with your broker) to pounce when the home and the price is right. Your best bet is to set up a Market Alert, itemizing your home search criteria. You will be notified as soon as a new listing with your criteria hits the market. If the home is priced to sell, it may get multiple offers. If you really want the home, make the best offer you can. Also, ask your broker what they think about giving the seller a very short window in which to accept or reject your offer—say 2 hours. This puts the heat on. The seller can always counter with an extended time, if they wish.
Sellers: Don’t be greedy. The market is hot, but it’s not THAT hot. And inventory levels are rising. Along with your broker, do your research and a competitive market analysis. Be realistic about your competition and price your home accordingly.
Don’t be tempted with the old “test-the-waters” strategy. Your best chance to sell your home is in the first two weeks it’s on the market. If you price too high, buyers will overlook your property. If you price just right, you may get multiple offers, even above your asking price.
Repair, clean, declutter, and stage your home, paying particular attention to curb appeal. Get professional photos and a virtual tour video. Hire a tech-savvy, marketing-savvy listing team that has an engaging, popular blog and associated social media accounts.
Give us a call today. We know the Portland real estate market, we’re top-notch listeners, negotiators, problem solvers, and marketing pros–and we’re are here for YOU!
Tell Me More
- Calculated Risk: What’s Right with Housing?
- HouseHunt: Oregon Real Estate Market Conditions & Trends
- Movoto: State of the Market May 2014: Prices and Inventory Both Up
- OPB: Portland Real Estate Loses A Little Steam, But Prices Still Rising
- Oregon Live: Buying a House in Portland in 2014: What to Expect in Real Estate
- Oregon Live: Millennials Aging Into Major Players in Real Estate Market
- Portland Business Journal: House Hunting in Portland? You’re hosed. Pretty much
- RedFin Research: Fast Pace of Home Sales Indicates Spring Has Finally Arrived in Some Markets
- The Washington Post: Real Estate Matters | Hot Seller’s Market Brings Solicitations to Homeowners
- The Washington Post: Weaker Sales Slowed US Home Price Gains in March ·
- Yahoo! Finance: What Interest Rates Will Cost You in 2014