Cooling House Prices in Portland Area: Median Selling Price Drops $ 15,000 in One Month
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Falling home prices and an increase in the number of properties listed for sale in the fall are giving buyers better choices within their budget in the Portland area and across the country.
Experts see this seasonal cooling as a welcome trend after an unforeseen and scorching residential real estate market during the coronavirus pandemic.
âHomes are still selling fast and prices haven’t gone down, but it’s not as extreme a sellers’ market as we’ve seen in the spring and summer,â Jeff Tucker, senior economist at the online real estate market company. Zillow, said in a press release. “Buyers today will have a little more time to pick the right home and a few more listings to choose from.”
In the Portland area, the median sale price of homes and condos in September was $ 510,000, down $ 15,000, or 2.9%, from $ 525,000 in August, according to the latest Regional Multiple Listing Service (RMLS) report.
Sellers are still in a strong position, but asking prices are falling for homes that remain on the market. The share of registrations in the Portland subway with a price drop was 16.5% in September, down from 14.6% in August, Zillow said.
This is the first time the median selling price in the Portland area has fallen since December 2020, according to the RMLS.
Before falling, the monthly appreciation of home values ââon the Portland subway jumped $ 15,000, from $ 500,000 in April to $ 515,000 in May, from $ 6,000 to $ 521,000 in June. , from $ 1,000 to $ 522,000 in July and from $ 3,000 to $ 525,000 in August, according to the RMLS.
âAugust was probably the peak of the year based on statistics from the past,â the broker said Dustin Miller of Windermere Realty Trust in Lake Oswego.
Miller said sellers could face an uncertain economy over the next 12 months as well as the negative effect of inflation in the market and rising interest rates.
The average interest rate on 30-year fixed-rate mortgages has increased to 3.09% this week, according to the Federal Home Loan Mortgage Corporation, known as Freddie Mac.
Another scourge for buyers: Inventory in the Portland subway is 34.3% below pre-pandemic levels in September 2019, according to Zillow’s latest market report.
The number of homes for sale, measured in months, has increased since it bottomed with 0.7 months of inventory in May, the lowest level in RMLS’s 30-year history.
September’s 1.1 months of unsold home inventory is still too low to help buyers. If sales continue at the same rate, it would take about five weeks to sell all the homes and condos available on the market.
The residential real estate market is considered balanced between buyers and sellers when there are enough residential properties for sale that it takes four to six months to sell them.
Strong housing demand is signaled by the number of deals closed, or closed sales, for 2021, which have been as high or higher every month as in the past four years, except in September, according to the RMLS.
A slight drop in prices in September is a relief for home buyers, who over the past 12 months have faced a median selling price of 15.4% from the previous 12 months, according to the RMLS report.
The median selling price is the midpoint at which half of the properties sell for a higher price and the other half for a lower price.
Nationally, Zillow economists Expect 13.6% growth in home values ââthrough September 2022.
The company says that 12-month forecast is supported by a slower recovery in inventory and increased activity in mortgage sales and applications.
Zillow predicts that existing home sales will increase by 7% from an already strong 2020.
New announcements: The 3,760 homes in the Portland metropolitan area introduced to the market in September marked a 1.7% increase from 3,698 new listings in August, according to the latest RMLS report.
New listings last month in the Portland area were 15.2% more than homes listed in September 2020.
Pending sales: In the Portland area, the 3,170 homes for sale that received an accepted offer in September were down 10.3% from the previous month but up 0.6% from September 2020, according to the report. .
Closed sales: In September, 3,167 residential properties in the metropolitan area were sold – down 1.6% from the 3,219 that closed in August and down 2.6% from the 3,251 closures in September 2020, according to the report.
Days on the market: According to the RMLS, the average length of time for a Portland-area residential property on the market before receiving an acceptable offer in September was 24 days, compared to 23 days in August and 20 days in July.
As of September 2020, the average time to market was 38 days.
– Janet Eastman | 503-294-4072
[email protected] | @janeteastman
Learn more about the Portland and Oregon real estate market:
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⢠Modern floating house in Portland with glass brick wall for sale at high water mark of $ 1,825,000
⢠Steamboat Inn, famous for fly fishing on the Umpqua River, is on sale for $ 3,750,000
⢠The owner of the farm “Bison and Brides” buys a famous castle on the highway: 5 million dollars spent in Ashland in 9 months
⢠Off-market home sales are rare, but Arlington Heights Portland mansion in 1918 secretly sells for $ 2.5 million
⢠Portland Fixers Top At $ 1.8 Million: Are These Homes A Good Deal?
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