By Karim Alaeddine, May 11, 2023
Find out what’s happening in the Portland real estate market for Mid-May 2023.
Hey I’m Karim Alaeddine, principal broker at living room realty here to tell you what you need to know about the market for Mid-May 2023.
While this update does have some tasty goodies buried in the data, let’s take a peek under the hood of the Portland market, look for trends and try our hat in prophecy… I mean forecasting.
Let’s Talk About Pricing
Pricing is going up! It’s been headed north since the very first day of the year.
Fun fact – the rolling average for median home sales price in Portland is only $50 lower than the absolute high water mark in the spring 2021, when inventory was non-existent and buyer competition was akin to the final leg of an Australian regatta. Like… super competitive. We are at that same average sales price again today.
Days On Market
Days on market – a measure of how quickly the current pool of buyers is burning through the current pool of listed homes. This metric has been dropping for 2 or 3 months… as it nearly always does in the spring.
To give some perspective, this data (measuring the rate of homes being sold) was last at this level in the spring of 2020. So for most of 2020, all of 2021 & all of 2022, the average days a home spent on market was lower than this week. At its absolute low point in June of 2022, the # of days on market were half of today.
If you’re visual like me, you might imagine a roller coaster going up and down each year (as inventory increases, then gets bought up.) 2023 is a softer, easier ride. Not so dramatic and the downhill fun part, when a lot of homes are getting sold, is less steep… more of a family-friendly ride this year.
That means homes are taking longer to sell… and we’re creeping into the spring season more slowly.
Price Reductions
Let’s look at an interesting data point about pricing, that sort of answers the questions;
“Should I wait?”
“Will I get buyers?”
“Are prices going to go up?”
“Are prices going to go down?”
A statistic that sheds light on these kinds of questions… the questions we ask when we have begun to think about a move, and are looking into the market crystal ball… is the rate of price reductions in listed homes. “How many listings took a price reduction?”
To frame the numbers for us, between March of 2020 and August of 2022, at any given time 20% to 40% of the homes on the market had price reductions, and this was in the middle of the hot AF market. In September 2022 that number was headed upward, as a direct result of rising interest rates and lower buyer activity, and it went as high as 55% meaning that more than 1/2 of homes on the market had taken price reductions.
Now for the May 2023 update: Currently, we’re in the 33% range (middle range of even the smokin’ market) and that stat is trending downhill.
Homes are selling, mostly without reductions. Price drops are – of course – used to stimulate buyer activity, but less downward pricing pressure is required to move property when buyers are interested in making a move. Lifestyle drives home purchases. Purchases drive market trends.
Buyer Competition
Lastly, competition is increasing amongst buyers. (We could do a whole hour on the ins and outs of niche sectors of the market that outpace the averages for metro area – within which competition is still super fierce.) Interest rates have leveled – with small dips and rises each week of course, but relatively stable. Pricing is actually quite strong meaning the sentiment amongst the market actors (mostly buyers) is that Portland is a good buy for long term housing & investment.
So… with sales strengthening and inventory as low as it is, current supply and demand levels show no sign of prices changing course.
In closing…
Spring is here.
Homes are selling.
Not as crazy as last year.
… Still Portland though.
Make A Move
Realtors are advocates who help buyers & sellers ask the very best questions, in order to guide clients through the market and into secure, positive transactions that align with their goals and dreams and we are honored.
If you’re looking to make a move, call us today.
We’d love to help you find your next Living Room.
Karim Alaeddine
Principal Broker in OR and Manager of Growth & Development
KARIM ALAEDDINE
Licensed Principal Broker
Real Estate Life Coach
karim@livingroomre.com
I grew up in Portland, working in my family’s restaurant (Abou Karim — Portland’s first Lebanese restaurant). Since 2006, I’ve sold old Portland manors and brilliant Belmont condos, modern memory makers and third generation family heirlooms, and have represented nervous and excited first time buyers, community builders, multi unit investors and others; always seeking to fulfill on my commitment to be of maximum service in the realm of real estate.
This real estate business is built on a background in home remodeling, historic home restoration, small business ownership and rental property investment. I am very grateful to do the work that I do.
Jessica LeDoux | Lead Buyer Agent | Broker Licensed in Oregon | jessica@livingroomre.com
Kim Parmon | Lead Listing Agent | Principal Broker Licensed in Oregon | kim@livingroomre.com
Andee Zeigler | Licensed Listing Team Operations Manager | andee@livingroomre.com
Jenessa VanZutphen | Buyer Operations Manager | Licensed in Oregon | jenessa@livingroomre.com
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- T: 503-309-2290
- karim@livingroomre.com
