Home Prices in Portland Rise Against Backdrop of Slow Sales

In the Portland, Oregon housing market, area home sales slowed in January, with more people trying to sell their homes and fewer trying to buy than in the year before.

Compared with January 2006, new listings were up nearly 20 percent, while closed sales fell more than 9 percent and pending sales by 2.2 percent, according to the January Market Action report from the Regional Multiple Listing Service, or RMLS.

New construction was off as well, with seven percent fewer properties listed as “proposed,”"under construction” or “new construction.” It makes sense: until Oregon mortgage activity picks up, why waste time and money on new building?

The slowdown hasn’t hurt sellers yet. The average home price rose to $322,000, an increase of 8.4 percent, and the median sale price rose to $275,000, an increase of 12 percent. The average and median prices for new construction both increased 16 percent.

According to RMLS, the inventory of 9,841 homes for sale would satisfy demand for approximately 6.2 percent, the highest level in recent years.

The inventory was 3.4 percent in January 2005 and 3.2 percent in 2006. The lower the number, the hotter the market. Rising inventories tend to benefit buyers or mortgage seekers because they can negotiate for lower prices.