RE Market Update from the Oregonian

November 16, 2015 9:06 am

We are always looking for the inforation that best explains what is happening in our real estate market. Metro recently decided not to expand the Urban Growth Boundary. That leaves the supply of buildable land fixed for the short term future. We are expecting 400,000 new residents in Portland in the next 20 years. The available land inside the boundary includes a large amount in the Damascus area. This land has produced no new housing units, and is expected to not be developed in the next 20 years. The new growth will largely be apartments and small lot infill. The important question for the region is “Are we creating the housing product to fit the need, or are we creating housing products that fit the restrictions placed on the market?”

The buyers will decide who is correct. Oregon is not the most friendly destination for new business’s. Our tax policies are onerous, and the regulations can be a deal stopper. Overall, we are very bullish on the housing investments in the Portland region. As the anticipated new arrivals choose their housing, it is easy to see that Portland’s favorite neighbors will see price appreciation if no new supply of high quality large lot homes are created. It is a good time to purchase a lifetime home in a great neighborhood, and sit back and watch the value grow.   See the articles below, courtesy of the Oregonian,        John DeCosta, Keller Williams Portland Premiere

For the third month in a row, the Portland-area housing market posted the kinds of numbers not seen in a decade.

The 2,996 pending sales last month reflected the region’s strongest October since 2005, according to the latest numbers from the Regional Multiple Listing Service.

The current three-month streak – August and September also posted best-since-2005 totals for pending and closed sales, respectively – follows a July that saw an all-time record for closed sales and continues a year that has seen steeply climbing home values and extremely low vacancy rates.

There were 2,717 closed sales in October, the report shows, which is a 9.7 percent decrease from the previous month but still 9.2 percent ahead of October 2014.

Inventory decreased slightly from 1.9 months in September to 1.8 months – a significantly lower figure than the 2.8 months seen last October. The figure estimates the amount of time it would take for all current homes on the market to sell at the current pace.

Lennox Scott, chairman at John L. Scott Real Estate, predicted that the region will see a strong winter season, too. (Although winter is always slower than other times of the year.)

“The proof lies in the numbers. … Yes, home sales will be lower during the winter, but as evidenced by the steady increases over 2014, the market continues to be hot,” Scott said in a written statement. “The really big story is just ahead right after the first of the year. … Be prepared for another vigorous market next spring.”

The average sale price in October was $360,000, a 7.3 percent increase year-over-year. The median sale price was $309,000, according to the report, which is up 6.9 percent from the same time a year ago.

— Luke Hammill
[email protected]
503-294-4029
@lucashammill

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