The Portland Metro Residential Market Action report is a monthly review provided by the RMLS, a database where real estate agents are required to post home listings for the region.
Historically in the winter months, inventory will rise because there are fewer buyers and homes stay on the market longer. However, the January 2022 (and 2021) numbers have not followed this trend. Inventory is at 0.8 months (compared to just 1 month in 2021, and 2.2 months in 2020). And while days on market (DOM) has increased to 38 days, this is partially 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 January 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). While slightly up from December’s inventory (0.6) it is still in-line with the historically low inventory rates we’ve seen over the past year.
Median Home Selling Price
The median sales price for January 2022 was reported at $512,000, an 11.3% increase from January 2021. The Lake Oswego and West Linn area continue to report the highest median home selling price at $776,000.
Here’s what median home sale prices looked like across Portland proper:
West Portland: $623,500
North Portland: $474,900
NE Portland: $484,000
SE Portland: $440,000
If you’re thinking of buying, don’t be put off by lower inventory and higher sales prices. With interest rates still at historic lows, homes remain affordable. Take a look at our affordability example in the image below comparing 2006 to 2021. Keep in mind that interest rates are expected to rise over the coming months/year, which will affect affordability.
“According to a formula from the National Association of REALTORS®, buying a house in the Portland metro area is affordable for a family earning the median income. A family earning the median income ($96,909 in 2021, per HUD) can afford 116% of a monthly mortgage payment on a median priced home ($511,000 in December). The formula assumes that the buyer has a 20% down payment and a 30-year fixed rate of 3.1% (per Freddie Mac).” RMLS 2022
Reach out if you’re interested in learning more about the Portland Metro real estate market. I can be reached anytime via email (email@example.com) or call/text (503-545-5094). You can also stay in touch by following us on Instagram!