The Portland real estate market experienced an uptick for the first quarter of 2014. New Listings and Closed Sales are both up, while Total Market Time is down.
This indicates that the inventory of available homes is increasing right along with home sales. And that the time it takes to sell a home in the Portland area is decreasing—by a rather dramatic 18.6%, as it turns out. In fact, Inventory in Months for Q1 2014 was 3.7 months on average, which dropped to 3.1 months for March.. Bottom line: There’s not a lot of inventory, and it’s selling fast.
An indicator to watch though is Pending Sales. This indicator is down by 3.2%. We’ll have to wait for the April RMLS stats to see if this trend has legs or is just a blimp on the radar.
The Pending Sales indicator could be telling us that home sales for Q2 might slow as a result of rising home prices (along with rising interest rates). Both Average Sale Price and Median Sale Price jumped significantly in Q1. This calibrates to about a 10% increase in home prices in greater Portland.
Portland Real Estate Indicators Q1 2014
- New Listings: +1.9%
- Pending Sales: -3.2%
- Closed Sales: +2.2%
- Average Sale Price: +11.2%
- Median Sale Price: +9.9%
- Total Market Time: -18.6%
And here’s a more complete look at the RMLS data:
Q1 2014 indicators suggest that RIGHT NOW is a very good time to buy or sell a home in Portland.
Sellers can take advantage of the highest home prices in many years. And buyers can take advantage of home prices that will feel like bargains in a year or two. If prices continue to climb (and we predict they will), the dream of home ownership could slip away from many folks with median incomes, especially if we add rising interest rates to the equation.
Last year, interest rates broke a seven-year downward trend, soaring nearly a full percentage point over a few months during the summer. Today’s 30-year fixed rate mortgages are running at around 4.6 percent, and they’re expected to pass the 5-percent threshold by the end of 2014, according to the Mortgage Bankers Association. That may not seem like a significant jump, but every extra point on a mortgage decreases buying power by about 10 percent.
Add a 10% decrease in buying power to a 10% home price increase, and you can see what looms ahead. If you’re ready and able to buy a home now, it’s a great time.
Give us a call today. We know the Portland real estate market, and we’re are here to help!
- Calculated Risk: What’s Right with Housing?
- Movoto: State of the Market May 2014: Prices and Inventory Both Up
- RedFin Research: Fast Pace of Home Sales Indicates Spring Has Finally Arrived in Some Markets
- The Washington Post: Weaker Sales Slowed US Home Price Gains in March
- Yahoo! Finance: What Interest Rates Will Cost You in 2014