The Portland Metro Residential Market Action report is a monthly review provided by the RMLS, a database where real estate agents post home listings for the region.
Historically in the winter months, inventory will rise because there are fewer buyers and therefore homes stay on the market longer. However, the February 2022 (and 2021) numbers have not followed this trend. Inventory is at 0.8 months (compared to just 1 month in 2021, and 1.9 months in 2020). Days on market (DOM) decreased to 35 days, but could still be considered inflated in part due to a small number of overpriced homes driving up the average. Homes that are priced right are selling at much faster rates than traditional/seasonal trends.
Three important topics from the report that I’d like to expand upon are inventory levels, median home selling price, and affordability. These metrics can help you decide the best time to buy, sell, or hold.
Inventory levels are a leading indicator of market strength. Inventory levels for February were reported at 0.8, meaning if no new homes came on the market, it would take 0.8 months until inventory sold out completely (at the current rate of sales). Inventory remained flat compared to January as we continue to see historically low inventory rates.
Median Home Selling Price
The median sales price for February 2022 was reported at $525,000, a 9.6% increase from February 2021. The Lake Oswego / West Linn area continues to report the highest median home selling price at $805,000.
Here’s what median home sale prices looked like across Portland proper:
West Portland: $579,500
North Portland: $512,500
NE Portland: $482,300
SE Portland: $460,000
Staying Focused on Affordability
With inventory levels remaining relatively flat over the past several months, the biggest variables facing prospective home buyers are home prices and interest rates. Expect median home prices to continue to slowly rise as price is heavily driven by demand. While still at historically low levels, interest rates are expected to rise slightly in the coming months (even weeks) which will directly affect overall affordability.
To get an idea of the impact interest rates have on mortgage payments, take a look at our affordability example in the image below comparing 2006 to 2021 (national stats). Keep in mind that interest rates are expected to rise over the coming months/year, which will affect affordability.
Interested in learning more about the Portland Metro real estate market? Contact me anytime via email (firstname.lastname@example.org) or call/text (503-545-5094). You can also stay in touch by following us on Instagram!