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
