Portland’s real estate market continues to see upward momentum with a 37% increase in pending home sales this past month. This rapid increase is not unusual for the time of year and a good indicator of the year to come.
Click here and read my summary below for an update on Portland Home Values.
Portland Home Values
The new year appears to be kicking-off where 2013 ended. Home sales have been on the rise through the first quarter, and the inventory of homes for sale remains low at just 3.1 months. This inventory is slightly lower than last year, and substantially below the past 8 years. Continued demand combined with very few homes for sale should maintain an upward pressure on home prices. The average cost of a home in the Portland Metro Area is currently $322,700, up 11.2% from the first quarter of 2013.
The graph below displays the average and median sale prices of Portland Area Homes between 2005 and today. During this period, the average price of a home rose 32% from a market bottom in 2011.
How are things selling in your neighborhood?
Portland’s close-in neighborhoods in N, NE and SE continue to sell quickly. Home prices in SE Portland have risen an average of 17.7% in the past twelve months. North Portland was a close runner-up at 15.2%. NE Portland rose 11.7% this past year, and has sustained their home values better than any Portland area over the past 8 years.
SW Portland including Beaverton, Aloha and Hillsboro are also selling quickly. These cities had a larger share of distressed bank-owned and short-sale properties selling at lower prices. Home prices in Beaverton and Aloha rose almost 16% over the past year.
Area’s outside of Portland including Gresham, Troutdale, Oregon City and Milwaukie have seen prices increases of 13%-16%.
Residential Distressed Properties (foreclosures and short-sales) - The number of foreclosures and short-sales in the Portland Metro Area has steadily dropped over the past two years and represented 11% of homes sold in the first quarter of 2014. The percentage of homeowners who are underwater on their mortgage is significantly lower in Portland than the rest of the nation. Approximately 17% of homeowners nationally are holding a mortgage significantly bigger than the market value of their property. According to RealtyTrac, Portland’s market is much healthier with only 9% of homeowners underwater.
Mortgage interest rates are averaging about 4.5%.
The days are getting longer and brighter. Hope you’re outside enjoying the sun today!
Please call me when it’s time to buy or sell a home. I’ll work hard for you.
Darin Provost, Broker
Vintage Real Estate