Shelby King//December 26, 2014//
The Portland residential real estate market cooled a little in November, but activity is still higher than this time last year, according to the latest data from the Regional Multiple Listing Service.
The number of closed sales in November (1,937) was down 22.1 percent from October (2,487), but 6.4 percent higher than November 2013 (1,821).
Nick Krautter, a principal broker for Keller Williams Realty, predicts that record-low interest rates and low inventory will continue to drive median home prices up.
鈥淚nventory is holding steady despite the drop in sales in November,鈥 he said. 鈥淚t appears that the number of buyers and sellers is keeping inventory at their incredibly low numbers.鈥
Currently, the Portland-metro area has 6,131 active residential listings, according to RMLS. Continued high sales activity is squeezing average and median home prices; the average is up 7.2 percent to $333,200 from $310,800 a year ago.
鈥淧rices are close to the peak values last hit in 2007,鈥 Krautter said. 鈥淎s prices go up, more buyers are priced out of the market, which could slow the pace of sales.鈥
Overall sales activity in the Portland area is up from 2013, with 4.5 percent more new listings, 3.8 percent more pending sales and 2.1 percent more closed sales.
Though sales activity is up for the year, Krautter said the market has begun its seasonal dip for the fall and winter months. In November, 685 homes sold, compared to 837 in October.
RMLS reports that inventory in the Portland-metro area rose slightly in November to 3.2 months, from 2.8 months in October. Inventory is measured in months, with six months of inventory indicating a balanced market.
Krautter further analyzed inventory data by breaking it down into neighborhoods, finding that the Ladd’s/Hawthorne area of Southeast Portland is the hottest market with just 0.7 of a month worth of single-family home inventory. The Piedmont/Concordia, Mount Tabor and Rose City Park/Hollywood neighborhoods had 0.8 of a month worth of inventory. Most other neighborhoods were at about two months, though downtown Portland was at 4.7 months.
Average home prices increased in all area markets but one between November 2013 and November 2014, according to RMLS data.