Portland, OR Metro Area Housing Market Analysis - August 2024
The Portland, OR metro area housing market in August 2024 presents a stable yet evolving landscape. Key indicators show a mix of stability in pricing and shifts in market dynamics, reflecting broader economic trends and local factors.
Stable Pricing Metrics
The Median Sales Price for homes in the Portland metro area remains unchanged year-over-year (YoY) at $560,000. Similarly, the Median List Price holds steady at $565,000, indicating a balanced market where sellers and buyers are in relative agreement on property values. The median Price Per Square Foot has seen a slight increase of 0.5% YoY, now at $304.81, while the Median List Price per square foot has risen by 2.0% YoY to $313.19. These modest increases suggest a stable pricing environment with slight upward pressure on per-square-foot valuations.
Sales and Inventory Dynamics
Home sales have experienced a decline, with 2,661 Homes Sold in August 2024, marking a 6.5% decrease YoY. Pending Sales also show a downward trend, with a 3.5% drop YoY to 2,710. New Listings have decreased by 6.0% YoY, totaling 2,973. Despite these declines, inventory levels have risen significantly by 10.9% YoY, reaching 6,512 homes. This increase in inventory, coupled with a 30.0% rise in Months of Supply to 2.40 months, indicates a shift towards a more buyer-friendly market.
Market Activity and Seller Behavior
The Median Days on Market have increased by 7.0% YoY to 25 days, suggesting that homes are taking slightly longer to sell. The average sale to list ratio has decreased marginally by 0.6% YoY to 99.3%, indicating that homes are selling very close to their list prices. The percentage of Homes Sold above list price has dropped by 5.0% YoY to 29.0%, reflecting a cooling in competitive bidding scenarios.
Price Adjustments and Market Exit
Price Drops have become more common, with 41.9% of listings experiencing a reduction, up 5.6% YoY. This trend suggests that sellers are adjusting their expectations to align with market realities. Additionally, the percentage of homes going off the market within two weeks has decreased by 8.4% YoY to 34.5%, indicating a slower pace of transactions and possibly more cautious buyer behavior.
Conclusion
Overall, the Portland, OR metro area housing market in August 2024 is characterized by stable pricing but shifting market dynamics. While prices remain steady, the increase in inventory and Months of Supply, along with longer days on market and more frequent Price Drops, suggest a market that is gradually tilting in favor of buyers. Sellers may need to adjust their strategies to navigate this evolving landscape effectively.
