I’ve been reporting on the latest shift in our Portland real estate markets going from a high inventory of Portland houses to sell to a very low inventory of houses since last fall when it became apparent there was a positive shift occurring.
We started seeing the inventory drop in March 2011 when inventory fell from 10.9 months in February 2011 to 7.1 months in March 2011. The number of our Portland houses for sale has been steadily dropping ever since then to 4.7 months in April 2012.
Portland Real Estate Balanced Sellers Or Buyers Markets
The other day I posted the latest RMLS™ Market Action Report for April 2012. We are at our lowest number of Portland homes for sale since the last 5 years.
One of my buyers recently said “it’s going crazy”. I had just showed her a new listing and we literally walked out the front door on our way to the car when I received an email from the listing agent saying there was already an offer on that house. That has been happening regularly with other clients as well.
We are facing bidding wars. Of course, not in every real estate market, but there is a lot of pent-up demand, the buyers are getting, in some cases, interest rates below 3%, and they are ready to buy. But, with few houses on the market, buyers are needing to act quickly and some of those buyers don’t want to get in bidding wars so some are still holding back.
Buyer, Seller Or Balanced Real Estate Markets In Portland April 2012
A market above 7 months of inventory is considered a market favoring buyers. Between 5-6 months of inventory is considered a balanced real estate market and prices begin to stabilize. Under 5 months of Portland houses to sell is considered favoring sellers and prices begin to increase.
What’s Happening In The Portland Real Estate Market?
Currently every single Portland real estate market is either a balanced or sellers’ real estate market. There are no Portland metro real estate markets that are favoring buyers.
BALANCED REAL ESTATE MARKETS (between 5-6 months of inventory or under 7 months favoring both buyers and sellers)
- Oregon City/Canby – 5.7 months of inventory
- Lake Oswego/West Linn = 5.4 months of inventory
- Tigard/Wilsonville = 5 months of inventory
SELLERS’ REAL ESTATE MARKETS (under 5 months of inventory and favoring sellers)
- North Portland = 4.3 months of inventory
- NE Portland = 3.5 months of inventory
- SE Portland = 3.2 months of inventory
- Gresham/Troutdale = 4.7 months of inventory
- Milwaukie/Clackamas = 4.6 months of inventory
- West Portland = 4.8 months of inventory
- NW Washington County = 2.7 months of inventory
- Beaverton/Aloha = 4.0 months of inventory
- Hillsboro/Forest Grove = 4.8 months of inventory
How to Use The Above Information
If you are planning on purchasing a home, and you see the area you want to buy a Portland home is a sellers’ market, you most likely won’t want to “low ball” your offer. In fact, you should be prepared for not only multiple offers being made on the property but more than likely a bidding war as well.
If you are a seller, now’s the time to consider whether you want to move on with your life, sell your home and purchase another home at a really good price with a great interest rate.
Prices aren’t where they were in 2007 and may never be again. In fact, the average price for a Portland home has decreased by -4.9% comparing the previous 12 months.
Interesting in selling your home? Let my 37 years of experience and education go to work for you. I’d love to be your REALTOR®!
ALL ABOUT…..Portland.Oregon Real Estate. © Copyright 2008-2013. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.