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Portland Real Estate Market Feb 2024: Trends, Extremes, and Opportunities

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Navigating Portland’s Dynamic Market in 2024

It’s February which means it is time to look back on the previous month and analyze the real estate trends and market conditions. As we venture deeper into 2024, the Portland real estate market is showing signs of significant change. The last few months have seen a drop in interest rates, resulting in an increased influx of buyers. Although rates are higher than the lows of 2021, there’s an emerging acceptance of these figures as the new normal. Reflecting on 2023, a year marked by a downturn in real estate, it’s notable that the average home price still rose by 3.5%. With the recent increase in market activity, we’re anticipating an appreciation of over 5% in 2024, a projection in line with most economists’ expectations.

The Most and Least Expensive Homes Sold Last Month

The Portland real estate market is diverse, ranging from luxury to affordability. Last month’s sales highlight this range vividly.

An exemplar of luxury, the most expensive home sold last month in Portland was located in Dunthorpe. This stunning property, with 5 bedrooms and 4 bathrooms and 3 half bathrooms over 7450 square feet, sat on 1.1 Acres. This home sold for a remarkable $3,250,000 showcasing the strength of Portland’s high-end market.

Contrasting this luxury, the least expensive home sold offers a glimpse into the market’s affordability. Situated in NE Portland, this cottage with 1bedroom and 1 bathroom, and a total area of 640 sqft, sold for just $298,000. Despite its modesty, it was cute, move in ready and had a large yard, proving that the Portland market caters to a wide range of budgets.

For Sellers: Seizing the Moment

The onset of Portland’s spring market this February brings new opportunities for sellers. With inventory levels dipping and buyer interest spiking, well-priced homes in popular areas are again attracting multiple offers. Recent experiences, like my offer being $60K over yet fourth in line, hint at a competitive season ahead. Sellers contemplating the right time to list might find the current market conditions ideal, especially with the trend of multiple offers expected to continue until around June.

For Buyers: Strategies in a Competitive Market

Buyers should brace for a competitive landscape. Homes are quickly becoming sought-after, often drawing multiple offers. While the highest offer often wins, we have several strategies to make your offer stand out. Currently, interest rates are around 6.5%, but a further decrease expected in spring could intensify competition. For those seeking less competition, exploring homes that have been on the market longer or are in less popular areas might be advantageous. Remember, the best time to buy is when it feels right for you, but with prices likely to rise, acting sooner may be beneficial.

Tailored Advice and Guidance

Whether you’re looking to buy, sell, or simply explore your options in Portland’s real estate market, personalized advice is key. For strategies, market timing, affordability, or property valuation, feel free to reach out. Together, we can navigate the evolving landscape of Portland’s real estate market in 2024.

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Unveiling Real Estate Trends in Portland: June 2023

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The real estate market in Portland is dynamic. It’s influenced by various factors, including supply and demand, economic indicators, and shifting buyer preferences. We will dissect key statistics to offer insights into the current state of the Portland real estate market. Our analysis will encompass crucial areas, including new listings, inventory levels, closed sales, time properties spend on the market, and average and median sale prices. We will examine these data points to reveal emerging trends and provide expert predictions for the Portland real estate market. As a reminder, statistics always come out one month behind, so the current market is slightly different.

New Listings:

In May 2023, the Portland real estate market witnessed 3,240 new listings—a 15.9% decrease compared to May 2022. However, a resounding 22.1% surge was observed compared to the preceding month, April 2023. These statistics signify an upward fluctuation in the availability of homes for sale in the Portland area, indicative of both changing market conditions and shifting buyer behavior. Buyers are starting to get used to the high interest rates and are entering the market again.

Inventory in Months:

The inventory in months—an essential metric gauging housing supply relative to the current sales pace—presents a compelling narrative in the Portland real estate market. Throughout 2023, the Portland market has experienced wide fluctuations in inventory levels. In January, the Portland market had a robust 2.7 months of inventory, only to decrease to 1.6 months by March. With another rise in interest rates an upward trajectory returned, with inventory stabilizing at 1.9 months for both April and May. This signals that while the number of houses being listed has remained fairly steady through the year the changes in interest rates are directly affecting how many buyers are entering the market.

Closed Sales:

Closed sales, representing successfully concluded transactions, offer a tangible indicator of market performance in the Portland real estate market. May 2023 witnessed 2,008 closed sales in Portland, registering a 31.1% decline relative to May 2022. Yet, an astounding recovery of 17.6% was experienced when juxtaposed with April 2023. This again indicates that buyer demand is tied directly to interest rates and even the seasonal spring push can’t cause us to rebound back to 2021 and 2022 numbers.

Time on Market:

The inventory level in the Portland real estate market underscores a prevailing seller’s market, where demand outstrips supply, leading to intensified competition among buyers. However, the total market time is much higher than what is expected for a sellers market. The average days a home took to sell still decreased substantially this past month to an average of just 40 days in Portland. When compared to what we are seeing on the ground day to day, this number seems high. Many homes that are priced well and presented well are selling in a week or less. So while we know demand is there, as a seller having a real estate professional is more important than ever.

market time, portland real estate May 2023
Year-to-Date Summary:

When comparing the first five months of 2023 with the same period in 2022, a slowdown in market activity emerges. New listings registered a notable decline of 23.5%. This also caused pending sales and closed sales to drop by 29.0% and 34.0%, respectively. When we consider these numbers next to the end of year numbers from 2022 we see a different story. May of 2022 was when the market notably shifted towards the downward trend. This continued into the summer before leveling out in the fall. Since the fall of 2022 we have seen a slow but steady climb in pricing, inventory and buyer demand which all point to a recovering real estate market.

Average and Median Sale Prices:

Analyzing the average and median sale prices in the Portland real estate market offers invaluable insights into the market’s overall price trajectory. Through May 2023, the average sale price in Portland decreased by 4.5%, from $615,600 to $588,200. Similarly, the median sale price had a comparable decrease of 4.4%, dropping from $549,000 to $525,000. If we compare these numbers to last month as opposed to last May we actually see an increase of 2.1% for the average and 3.8% for the median. This again points to a recovering and growing real estate market.

Average sales Price May 2023
Conclusion:

Through an analysis of the real estate statistics, we have witnessed undeniable fluctuations in new listings, pending and closed sales, inventory levels, and average and median sale prices in the Portland real estate market. While market activity has slowed compared to the previous year, month-over-month data reflects a resilient rebound. If you are thinking of selling, personal timing matters more than anything. With home prices climbing you don’t have to have a fear of missing the top. If you are on the fence about buying, the longer you wait, the more expensive things will continue to get. Interest rates do play a huge part into what the monthly payment will be, but we don’t expect them to suddenly drop. Hopefully this information is helpful as you consider whether now is the right time to jump into the real estate market or not. If you are thinking of buying and want to know what you might qualify for, We have all our favorite lenders listed HERE. And if you are ready to start looking at homes, you can do that HERE. Wondering what your home is worth? FInd out HERE

Why selling your first home in Portland could be the right move

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Hey there, Portland homeowners! Are you ready to move up to a bigger and better home? Then you’re in the right place! Selling your first home can be intimidating, but don’t worry. We’ve got you covered!

With low inventory and high demand in Portland’s housing market, now could be the perfect time to sell your current home and move up to a more spacious, comfortable home. We know that making any move can be a little nerve-wracking. That’s why it’s important to work with a real estate agent who understands your needs and can guide you through the process. So, what are some of the things you need to consider when going to a “move up” home in Portland?

Step 1

First, you need to understand the current state of Portland’s housing market. In recent years, the market has been experiencing low inventory and high demand, which has resulted in rising home prices. That has slowed down with recent interest rate hikes, but the market is still competitive and prices are trending upwards. This can be a great opportunity for homeowners who are looking to sell their first home. By selling in a seller’s market, you may be able to get a higher price for your current home, which can help you afford a more expensive “move up” home.

Step 2

Second, you’ll need to decide if staying in Portland is the right move. The city has many wonderful things to offer like the best food carts in the country, stunning parks and trails, and proximity to amazing outdoor attractions like Mt. Hood and The Coast. Even still, we acknowledge that Portland isn’t right for everyone. If you do want to move out of the city, or out of the state, do a deep dive on the places you are considering to see what will best suit your lifestyle. If you need a connection out of state, we are happy to connect you with someone that can educate you on neighborhoods and current market trends.

Step 3

Lastly, you’ll need to think about what you want in your next home. We suggest making a list of the things you love about your home, and the things that you want to change. Then we will use that list as a baseline to find your next home. You want to dig a little deeper than the first time around with this list. Think about neighborhood amenities and any expected lifestyle changes when coming up with your wants list.

If you’re ready to take the next step and start exploring your options, we’re here to help. Visit HERE for an instant home valuation to see if moving might be worth it for you. You can also contact us for a free consultation if you’d like a more accurate representation, you can find our Calendar HERE. If you still aren’t sure, give us a call and we’ll be happy to answer any questions you may have.

Don’t wait to make your move. Let us help you sell so you can find the perfect “move up” home.

Why should you move to Oregon?

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Are you thinking of moving to the Beautiful state of Oregon? We put together this quick video which highlights just a couple reasons why we think you will love it here.

Oregon, known as the “Beaver State”, is one of the most beautiful places in the United States. It’s located in the Pacific Northwest and is filled with stunning scenery, a rich culture, and diverse communities. If you’re thinking about moving, here are some reasons why Oregon should be at the top of your list.

First of all, Oregon has a vibrant urban scene. Portland, the largest city in the state, is known for its lively downtown, trendy neighborhoods, and quirky culture. From craft beer to farm-to-table cuisine, Portland is a foodie’s paradise. And if you’re into biking or walking, Portland is one of the most bike-friendly cities in the country, with over 350 miles of bike lanes.

outside the city

But Oregon isn’t just about the city life. The state also boasts over 360 miles of beautiful coastline, with stunning beaches, rugged cliffs, and picturesque lighthouses. Whether you’re into surfing, kayaking, or just lounging on the beach, Oregon has something for everyone.

If you’re an outdoor enthusiast, you’ll find plenty to love in Oregon. The state is home to Crater Lake National Park, one of the most breathtaking natural wonders in the world. The lake, which was formed by a collapsed volcano, is the deepest in the United States and is surrounded by beautiful forests and mountains.

If you’re a wine lover, you’ll be happy to know that Oregon has a thriving wine industry. The state is known for its Pinot Noir, and the Willamette Valley is home to over 500 wineries. Whether you’re a connoisseur or just enjoy a good glass of wine, you’ll find something to love in the Oregon wine country.

Finally, if you’re a fan of the arts, Oregon has plenty to offer. The state is home to the Oregon Shakespeare Festival, one of the most prestigious theater festivals in the country. And if you’re more into music, the state is known for its thriving indie music scene, with countless venues and festivals throughout the year.

in conclusion

From the bustling city life to the peaceful wilderness, we truly have it all. With its beautiful scenery, vibrant culture, and endless opportunities for adventure, there’s never been a better time to make the move to the Beaver State.

Do we have you convinced? You can search for homes HERE. Or learn more about Jessica HERE. We look forward to connecting soon.

Be Ready to Buy

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You need to be ready to buy when the market shifts. 

We still have an inventory crisis, and that will keep the market from crashing.  Pricing will continue going down as long as the interest rates continue to climb. As soon as inflation is back under control, they will drop the rates again.  When they do, you want to be ready to buy so you can enjoy the climb and build wealth.  

What do you need to do to be a ready to buy? Here are the 4 things I would focus on to best position yourself for a future purchase. 

Save your money.

You’ll need a downpayment and the more money you can put down, the better the house will be. Set aside a percentage of every paycheck, somewhere you can’t touch it, and let it build up as much as you can. If the bulk of your money is tied up in investments, I’d pull it and hold the cash so the stock market isn’t deciding how large of a downpayment you have. Of course talk with your financial advisor about this strategy, but stocks are also predicted to continue declining.  

Pay down your debts.

Your debt to income ratio is a huge part of being able to buy a house. Start with paying off your smaller debts and then wrap those payments into the larger debts. This will put yourself in as strong a position as possible.  

Work on your credit score.

This will improve naturally as you pay your debts down. You also want to make sure you stay up to date on all your payments and remove any past delinquencies that may still be showing up.  Free credit report sites can give you a quick overview, but for a better look I’d head over to one of the actual reporting agencies.  

Hone what you want to buy.

Once interest rates come back down, there will be a frenzy again because we don’t have any inventory.  Knowing exactly what you want to buy will put you in the best position to immediately jump on it when it comes on the market.  

This market is different than anything we have ever seen before, and as such we are all learning something new everyday.  If it were my money, I’d be buying homes as soon as the interest rates hit 5.5%. If you want to talk about a buying strategy, or what this could mean for you, please reach out!

Want to meet with us? You can schedule with us HERE

April Market Update

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Its time again to look back at the numbers and see how healthy the real estate market is. With all the news about being in a bubble and an incoming crash, it is more important than ever to really look at past and present statistics. Let’s dive in to the numbers for April 2022!

Since November we have been seeing the inventory hover right around .8 months. This means if no one else listed their home, everything would be sold in less than a month. This is still true for April, but the number is climbing. When we have the stats out for May I expect the number to be closer to .9 or even 1. We have really been feeling the extra inventory and are so grateful for it.

The average sales price is up 13.4% compared to April of last year and a whopping 4% from just last month. The former is not surprising as we have been seeing double digit appreciation for the last couple years. The 4% increase from last month is astonishing, but not unbelievable. As soon as we saw the rates increase, we noticed people throwing out crazy offer numbers so they could lock their rate in. We noticed multiple homes that closed in this timeframe sold for around 30% over what they were listed for.

Summary

Now that everyone has settled into the newly increased rate hikes things are back to “Portland normal”. We are still seeing the really cute homes fly off the shelf for about 100k over asking price. Many people are still waiving some or all of their contingencies, and homes are getting multiple offers. The biggest difference is we are mostly seeing 2-3 offers instead of 20.

We expect this trend to continue as things settle a bit. We don’t expect to see any big drops or dips. Despite what major news outlets may be saying, the market correcting itself is a good things and will benefit everyone involved!

If you want specifics about what the changing market means for your home sale or purchase, we would be happy to chat with you! If you want to chat with a lender about your purchasing power, you can see who we trust here

Love it or List it?

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I’m sure you’ve seen Love it or List it- where a family has totally outgrown their space but one of the partners just doesn’t want to leave, so they decide to renovate. 

And if the renovations aren’t fixing the issue, then, and only then, do they move…

While reality TV is fun to watch, the reality of living in a construction zone while shopping for a new house, isn’t.

That’s why I recommend doing one or the other. Let’s break it down.

A lot of times, people get frustrated with their space. They’ve had another baby, fallen out of love with their condo, or started dreaming of retiring in a smaller space near the beach. 

Whatever the reason, it’s very important to first identify WHY you are considering a move, and then go from there. 

Here’s five things to think about…

#1 Can it be fixed easily? 

If you want an updated kitchen, swapping out fixtures, painting cabinets, and buying new appliances is a pretty easy fix. But if you want a bigger kitchen, you’re going to have to move.

#2 Can you deal with contractors?

Hiring an interior designer or general contractor to manage your project will help, but renovations require you to work with multiple companies and contractors on a daily basis. And you’ll be totally dependent on their timeline, expertise, and quality of work. If you don’t want people coming in and out of your home for weeks on end, it may be time to move into a turn key home.

#3 Can you live with the mess? 

Renovations can be dusty and dirty and shrink an already hard-to-navigate environment. Tools will be everywhere, equipment will be everywhere, and people will be everywhere. Is a renovation going to get in the way of school, work, or travel? If so, something turnkey may be more appealing.

#4 Can you tolerate a move? 

You may dread the thought of having to pack up your entire home while paying a moving company thousands of dollars to pick up your heirloom armoire and try and make it through the front door. If this sounds unbearable to you, it may be cause to stay.

#5 Do you love your location? 

If the view, zoning, corner lot, or amazing neighbors are the reason why you moved to your current house to begin with, then moving may not be the answer. In this case, it would be better to renovate the inside of the home to match the amazing benefits of the outside of the home. 

No matter whether you decide to love it or list it, it’s important to have a good Realtor to help you understand how renovations will affect your home value and help you decide if you’re better off packing up or staying put. That’s where I can help.

If you’re thinking about making a move (or know someone who is), Please reach out! No pressure, no sales tactics, just helpful advice and the guidance you need!

And finally, if you’re not thinking about making a move just yet, feel free to save this page for future reference, so you can come back to it! 

If you want to get to know either of us better you can go to our pages Jessica or Tekela

Year End Market Update

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The year end numbers are out for the Portland market for 2021. The year was absolutely insane in many ways, so lets dive into the numbers!

year end review
Appreciation

Firstly, if you bought a house more than a year ago, you averaged a 15.8% appreciation. To put that into perspective a $500,000 house is now worth, on average, $580,000. Some areas are even seeing much higher numbers. For example, Oregon City and Troutdale both saw an average appreciation of over 19%. The rural areas around Mt. Hood are up over 30%. If Covid has taught us anything, it’s that people wanted more space. So rural areas had really aggressive bidding wars and some serious price jumps.

Average Home Price

The average home price in the Portland metro is now at $582,000. I know many people are waiting on the market to drop and this simply isn’t going to happen. It will cool down, especially as climbing interest rates push people out of the market, but prices will continue to climb and affordability will continue to be an issue. We predict that 2022 will be just as competitive as 2021 was. We are still seeing houses get bid up to 100k over list price in many instances, and almost everything is still getting multiple offers. If you are on the fence, now would be a good time to get off of it.

Average Days on Market

The average days on market dropped yet again to the lowest numbers on record. We had just over 2 weeks of inventory for the month of December. This isn’t surprising because it’s December, there are a lot of holidays, and not many people want to move during this time. We have seen a lot of houses coming on the market in the last couple weeks and that number will start to tick back up.

We hope these numbers help you to get a pulse on what is going on in and around Portland! If you want specific numbers for your neighborhood, let us know and we will happily send them over. If you need anything else real estate related, feel free to submit the form below and we will get right back to you!

Ready to jump in but want to know more about us? You can read about Jessica or Tekela! Also, if you need a lender, you can find some that we love HERE