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Portland Metro Real Estate: May 2022 Market Action Report Analysis

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, springtime means an uptick in inventory in the Portland real estate market paired with more buyers beginning, or restarting, their home search. Looking at the latest data, the May 2022 (and 2021) numbers have not followed this trend. 

Inventory is at 1.0 months (compared to just 0.7 months in 2021, and 2.3 months in 2020). Days on market (DOM) decreased to 18 days (14.2% decrease from April), 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 still selling at much faster rates than traditional/seasonal trends. 

Three important data points 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

Inventory levels are a leading indicator of market strength. Inventory levels for May were reported at 1.0, meaning if no new homes came on the market, it would take one month until inventory sold out completely (at the current rate of sales). Inventory is slightly up compared to last month (0.8) as we continue to see historically low inventory rates. 

Median Home Selling Price

The median sales price for May 2022 was reported at $575,000, a 11.7% increase from May 2021. The Lake Oswego / West Linn area continues to report the highest median home selling price at $880,000.

Here’s what median home sale prices looked like across Portland proper:

West Portland: $684,500

North Portland: $534,500

NE Portland: $575,000

SE Portland: $560,000

Our Takeaways

With inventory levels remaining extremely low and relatively flat over the past several months, the biggest variables prospective home buyers are faced with are home prices and interest rates. Expect median home prices to continue to slowly rise in the short term as price is heavily driven by demand. 

Interest rates are expected to continue to rise, making homes less affordable. The big question is – purchase now at relatively low interest rates but higher home prices, or wait for prices to slow (or even fall) but at predicted higher interest rates? 

We can’t predict the future, but our assumption is that rates will continue to rise and demand will begin to slow. Most of the demand slow down will be driven by homeowners who were previously on the fence with whether or not to sell starting to list their homes, thus increasing the supply. As demand falls and supply increases, we would expect to see home values plateau. 

Interested in learning more about the Portland Metro real estate market? Contact me anytime via email (michaelgreenpdx@gmail.com) or call/text (503-545-5094). You can also stay in touch by following us on  Instagram!

Michael Green & Tori Buck

The Green Buck Real Estate Team

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