Portland housing inventory drops to 8 year low putting sellers in control again
According to statistics from RMLS (Regional Multiple Listing Service), we saw housing inventories drop to an 8 year low in the Portland metro area. As of close of business in December 2014, there was just a 2.3 month supply of homes listed, way below the 4-6 month supply that produces a more balanced market favoring neither buyers nor sellers.
This dearth of inventory has buyers scrambling, and of course, will drive home values up yet again as multiple buyers will be bidding for the same few properties. The average sale price in the Portland metro area rose to $331,600, while the median sales price rose to $290,000. Just a year ago, the median sales price of homes sold was only $267,300.
The areas that saw the greatest value increases during the 4th quarter of 2014 included SE Portland, Milwaukie/Clackamas, Oregon City/Canby, and Hillsboro/Forest Grove neighborhoods. These statistics reflect that most of the hottest areas late last year were neighborhoods that have traditionally been somewhat under-priced. It’s important to note that NE Portland still remains one of the most coveted areas in the metro area, though pricing increases have slowed somewhat as compared to some of the more lower priced neighborhoods.
Buyers are out in huge numbers already this year, fueled by almost record setting low interest rates. And home flippers and investors seem to be re-appearing as well, though seem to be targeting fixer homes in higher priced neighborhoods.
According to United Van Lines, Oregon topped the list of states people were moving into, as opposed to out. According to a report released by CNN Money, the moving company found that 66% of all interstate moves in Oregon (128,000 in 2014), were from people moving into the state, rather than leaving it. This marks the second year in a row that Oregon topped the list.