Despite the downward trend during the fall season, December was a productive finish to the year for the Portland housing market. One contributing factor was an increase in interest rates. December is typically the slowest month for real estate, but rates spiked, leading many to rush and buy to lock in the rate before prices got too high. Below is a breakdown from the fourth quarter of 2018 and some insight into 2019.
Days on Market
Compared to the third quarter of 2018, homes stayed on the market twice as long, for a median of 32 days. This is longer than the median of 17 days during the third quarter. However, it’s always advised to purchase a home if it’s within your budget so someone else doesn’t snag it. Overall, December 2018 was very similar to December 2017, but with higher median sold values.
Number of Homes Sold
562 homes were sold in North Portland last quarter, which is down slightly from quarter 3 of 2018, and also down from the third quarter of 2017.
Price
The median sold price for homes in North Portland was $415,000 during the fourth quarter, which is exactly on par with the second quarter of 2018. This number is an increase from the fourth quarter of 2017, when the median sold price was $390,000. We definitely welcome this change.
Price Changes
Speaking of price changes, curious about how prices have changed in Portland over the past few years? This heat map shows you exactly what’s changed for the entire city.
You can see that there have been increases for some parts of the city, but there have also been decreases in a few. By the way, these one- and five-year numbers are all down from last year.
Here’s a closer look at North Portland’s neighborhoods. The first number is the one-year median price change, and the second number is the five-year median price change.
Arbor Lodge (5%, 56%)
Bridgeton (5%, 29%)
East Columbia (-5%, 46%)
Hayden Island (1%, 27%)
Kenton (9%, 71%)
Overlook (-6%, 50%)
Piedmont (10%, 71%)
St. Johns (11%, 73%)
University (9%, 54%)
Want to See More?
If you want to see quick housing market stats for every zip code in our area, check this out! Pretty cool.
What the Future Holds
While much of 2018 was booming for the housing market, things still look promising for buyers in the Portland area as we head into 2019. Home prices remain resilient as well, which can be attributed to a lack of inventories in the market. Many experts have forecasted a slow period for 2019, with rates being completely cut by 2020. However, no need to be discouraged, because there may also be no downturn at all. The market simply isn’t predicted to be as strong as it was in 2018.
While 2019 might not necessarily be a buyers’ market, it will be closer than previous years, especially since the last recession. Overall despite the slowdown, prices are still rising. Most likely, things are just headed towards a more normal market. Historically speaking, springtime is the hottest time to buy in the Portland market, so as always, we recommend buying while you can!
If you need any help buying or selling a home, give us a call! We’d love to help you navigate Portland’s market. Visit www.farrellrealty.com or give us a call at (503)-283-1900.