Low inventory and rising home prices are the norm in the Portland real estate market right now. Portland's median home price jumped $8900 in April from the month before an inventory continues to remain low.
However, properties available did jump 40% in April as opposed to March, which is good news for potential buyers. However, the increase in homes under contract and closed sales actually decreased compared to the supply of homes for sale. Inventory has been the lowest ever reported in his 30-year history of Portland's RMLS.
Prices increased again 1.9% from February to March 2021 with a median sale price ending in $488,000, and a $8900 increase in just a month. In March, the average sales price was $554,000. [Source]
With interest rates still at an all-time low at just 3.04% as of April 15, we are seeing those rates slightly increasing. In January, the rock-bottom rate was just 2.65%. March is typically the month that real estate transactions launch into the spring seasons and we saw a 51.5% spike in homes that received an accepted offer compared to February. Pending sales was also a 42.6% jump from 2020.
More and more people are looking for more space, a suburban area, and a way to work from home without having to be close to the city center and major office buildings. With the absorption rate at less than one month, right now it would take just about three weeks to completely sell all of the available real estate on the market. Most balance markets are considered at about a 6% absorption rate.
Many economists feel that most home shoppers, especially first-time buyers, will continue to relocate out of expensive urban areas and apartments into places that allow home office, easy entertainment options, and more outdoor space. This is making the inventory in the suburban markets extremely tight. While people aren't moving necessarily too far out into the country as they may need to go into the office at some point, they don't need to live within a minute or two of their work.
With rising mortgage rates, the economist feel that many will decide to buy their first homes within the next couple of months rather than wait until next year.
If you are interested in becoming a first-time homebuyer or just starting out doing some research about the Portland market, feel free to browse our website for all the latest and most up-to-date listings or contact us for a complete list of homes and real estate that meet your search criteria and price and what exactly you're looking for in your next home.
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