Market Still Hot in May
The real estate market began with a bang in 2019. In similar fashion to 2018 and the First Quarter of this year, things have stayed hot in Quarter 2. The good news for homeowners is prices are not appreciating in the same way they did in 2016. This is especially promising due to the current prominence of low mortgage rates. Overall, things are not on a downward trend as was once predicted for the majority of 2019.
Despite trends and forecasts predicting a slowdown by midyear, May was the brightest month of 2019. Detached single family homes are still performing the strongest, while condo markets are showing a slowed pace. This trend has been bringing down the combined average market slightly, but not by a significant amount.
As for specific statistics in May 2019, houses were on the market for an average of 31 days, with a median of 10 days. In May 2018, houses were on the market for an average of 29 days, with a median of 9 days. There was a grand total of 965 houses sold in May 2019, with the median selling price rounding out at $455,000.
Plunging Mortgage Rates
More homes went pending in May 2019 than May 2018, and although we can’t say for sure, a reason for this year’s increase in pending homes may be the descending mortgage rates. Ultimately, this has empowered buyers to buy while rates are low, which is something many have capitalized on.
June Follows Trend
Once June rolled around, we expected there to be a slowdown, as July and the majority of the summer is generally a slower time for Portland. However, with low mortgage rates and a solid job market, people in the Portland area continued to buy homes. Since everyone seems to be capitalizing on this pattern, the only challenge that remains in Portland is lack of inventory to support the high interest in buying.
In June 2019, houses were on the market for an average of 29 days and a median of 12 days. As for June 2018, houses were on the market for an average of 27 days and a median of 10 days. There was a grand total of 927 houses sold, with the median selling price hovering at $432,000.
We are all excited about the Portland housing market and how it has kept us on our toes this year. With stats not yet released for July, we anticipate a slowdown, as real estate is highly seasonal and less busy during the summer months. However, we fully expect the market to remain steady. It’s safe to say that while mortgage rates remain low, we’ll be keeping a close eye on the market as the fall season approaches.