Low Inventory Puts Pressure on Sales
559 homes sold in Portland this January, which is 296 less than December. Home sales are at normal winter levels after a late December rally. Even with lower sales the market is still favoring Sellers and promises to keep inventory low, even before the Spring and Summer rush.
Wild cards: As prices rise, more buyers are priced out of the market which could slow the pace of sales. Interest rates remain low. Out of state investment continues to push prices and rents higher and keep inventory low.
I’m predicting around 600 closed sales in Portland (RMLS areas 141, 142, 143 & 148) in February.
Sales volume is a leading indicator for price. To help predict where the market is going I publish this sales volume trend report. The wisdom is that price follows volume so when you see a market trending higher in sales, prices will soon follow up and when sales volume is low, prices will stay flat or fall.