Market Conditions Ending May 31, 2013

The Portland, Oregon real estate market is on fire lately (not literally). The inventory dropped again to 2.5 months. This means at the current rate of sale it would take 2.5 months to clear off the current homes (including proposed and under construction) from the market. This is extremely low historically. The last time the inventory dropped this low was in May of 2006 or 7 years ago. This drop in inventory, coupled with a slight increase in all time low interest rates leads to very high demand and rapid appreciation of homes. The average sales price percent change increased to 9.8%. The average sales price percent change measures the rolling averages over the last 12 months and compares it to the rolling averages over the previous 12 months ($289,500 versus $263,800). All the statistical categories are up significantly. New listings are up 17.3%, pending sales are up 18.1%, closed sales are up 27.8%, averages sales price from last May is up 12.6%, median sales price from last May is up 14.9% and the total marketing time has dropped to 85 days or -25.5%.