The real estate market is ever-changing, presenting both exciting opportunities and some challenges for buyers and sellers alike. Here’s where housing market updates become crucial. Packed with valuable insights, these updates paint a clear picture of the market’s current state.

Armed with this knowledge, you can make informed decisions aligned with your goals. Whether you’re in the market to find the perfect home to buy or sell your property for the best price, staying attuned to the latest trends empowers you to navigate the landscape confidently. So, let’s delve into the key trends and insights that shaped Portland's housing market in the first quarter of 2024.

Number of Homes Sold

In Q1 2024, Portland witnessed 3,178 homes sold, marking a 9.9% decrease compared to the previous quarter, Q4 2023. This seasonal slowdown is a common trend as the first quarter is typically less active than the fourth quarter.

Compared to Q1 2023, there was a 7.7% decrease in the number of homes sold. This drop can be attributed to various factors such as:

• Limited Inventory: The shortage of available homes for sale restricts overall market activity and potentially pushes some buyers to delay their purchases. In other words, when there are fewer homes available to buy, then fewer homes are bought.
• Seller’s Competitive Advantage: The demand for homes exceeds the supply, leading to increased competition among buyers, higher selling prices, and faster sales for sellers.

The number of homes sold in Q1 2024 dipped to the lowest since 2019, but the rate of decline is slowing.

Also, the number of new listings coming onto the market is starting to increase, showing people are finally getting off the fence about selling. Sale prices have been steady, though Days on Market are increasing. Inventory is still very low in most areas, so prices are expected to continue to climb.

Median Sales Price

The median sales price for Q1 2024 fell ever so slightly to $570,000, reflecting a less than 1% decrease compared to Q4 2023. Prices shot up between Q1 and Q2 last year and have been falling slowly since. Prices should start to climb again as people have become used to the higher interest rates, meaning activity is increasing in the market.

There was also a 3.6% increase compared to the first quarter of 2023, demonstrating the market is still in an upward pricing trend.

Homes in Portland sold for approximately the asking price on average in March 2024. We are seeing some competition for homes in the lower price ranges with multiple offers being received.

Due to the fact that we're still in a seller's market, sellers may find themselves in a favorable position, with the potential to capitalize on the current market conditions.

For buyers, navigating the market may present challenges due to higher home prices but you can view this increase as a potential investment opportunity, especially since property values are expected to continue to rise.

Median Days on Market

In Q1 2024, the median Days on Market for homes in Portland was 39 days, reflecting an increase of 11 days compared to the previous quarter. This uptick suggests a slightly slower pace in the housing market, with homes taking longer to sell during this period.

Seasonal factors likely influenced the rise of median DOM from Q4 2023 to Q1 2024. Additionally, increased competition among sellers or adjustments in pricing strategies may also impact the time it takes for homes to sell.

Compared to Q1 2023, there was a 7-day increase in the median Days on Market. This can be attributed to changes in buyer preferences, shifts in inventory levels, or variations in market demand.

While a longer median DOM may suggest a cooling market, it’s important to note that homes in Portland are still selling relatively quickly. This indicates continued demand from buyers and overall market resilience despite the slight increase in Days on Market.

Mortgage Rates

Mortgage rates experienced a notable decline towards the end of 2023, but mortgage rates exceeded 7% for the first time this year. As of April 18, the average 30-Yr FRM stood at 7.1%. While that’s a welcome drop from the 7.79% seen in October last year, it remains higher than the 6.09% rates observed in February 2023.

The current stability in mortgage rates has prompted potential home buyers to weigh their options carefully. Some are considering purchasing now before rates potentially rise further, while others are waiting in anticipation of future decreases. Recent data show a modest increase in purchase applications, but there’s uncertainty regarding how many buyers can afford homes if rates continue to climb.

Despite expectations from forecasters that rates will dip below 7% later in the year, stubborn inflation numbers have kept rates higher than anticipated for the time being. The recent Fed comments and stronger-than-anticipated economic numbers indicate we may only see one rate change this year, if any.

It’s important to note that while mortgage rates play a significant role in the housing market, they are not the sole determining factor. Other factors such as inventory levels, economic conditions, and buyer sentiment also shape the overall housing landscape.

Conclusion

As we move forward, monitoring changes in the key trends like number of homes sold, median Days on Market, median sales price, and mortgage rates provide valuable insights into the evolving dynamics of Portland's housing market.

Whether you’re a buyer looking for opportunities or a seller aiming to maximize your property’s value and exposure, understanding these trends can help you make informed decisions in today’s competitive real estate landscape. If you want to delve deeper into what’s happening out there, especially locally, don’t hesitate to reach out for an in-depth discussion.