All year we’ve been talking about the inventory getting lower and lower in Portland and the market getting stronger. Now to talk about prices going up is our real estate expert Nick Krautter from Keller Williams real estate and sellpdx.com.
Q. Lets start with how much the inventory has dropped this year and what it means for the market.
A. The inventory in January was 7 months which is still a buyers market. In June the inventory dropped to 3.9 months and that’s definitely a seller’s market. That a huge shift in 6 months. What that means to the market is that buying a home is more competitive and prices are going up.
Q. How much are prices going up?
A. When you look at the average sales price in June of 2011 vs. June of this year prices are up almost 9%! Looking at the first quarter of 2011 vs 2012 prices are up almost 3% and keep in mind it was still a buyers market in the first quarter.
Q. What is your prediction for the rest of the year?
A. Because interest rates are now at 3.5% home ownership is at an all time high affordability. Add to that affordability that new home building isn’t in full swing yet and I see prices continuing to rise this year and through next year. I think the close-in market will be back to peak values in 18 months if this trend holds.