Portland Home Sales Drop, Home Prices Rise

Oregon mortgage demand and home sales slowed in the Portland metro area in March, but just the same, median home prices continue to rise.

According to the Regional Multiple Listing Service, local home sales slowed by nearly 10 percent in March compared with the same month a year ago.

New listings were up nearly 24 percent.

There were 10,557 active listings at the end of March, or enough to satisfy demand for 3.8 months. Despite the relative lack of Oregon home loan demand this is the highest level for a March in two years.

Still, it’s lower than January and February, indicating that perhaps more Oregon mortgage applicants are returning to the market and will continue absorbing the excess inventory.

The average price of a home rose to $327,800, up 12.2 percent. For the condo market, the average sale price rose to $125,300, an increase of 4 percent.

The average time on market was 65 days, 20 days longer than the 45 days it took on average to sell a home in March 2006. Oregon mortgage rates remain near historic lows, lending hope to experts’ theories that the average days on market may soon begin to decline.

Southern Oregon home prices continued to fluctuate. The greatest price jump was recorded in Milwaukie/Clackamas, where prices were up 15.5 percent.

Other stellar performers were Southeast Portland (14.7 percent), Gresham/Troutdale (14.6 percent), Hillsboro/Forest Grove (14.5 percent), North Portland (13.9 percent), Lake Oswego/West Linn (13.1 percent), Oregon City/Canby (12.2 percent) and Northeast Portland (11.5 percent).

SOURCE: Portland Business Journal