To kick off the new year, January’s average home sale price for the Portland Metropolitan area stood at $506,554. This is an 8.7% increase compared to December 2016 and a 17.9% increase compared to the same time last year.
Nationally, the average sale price reflected the increase we saw locally. For comparison, December’s national average was $384,000 (up from November’s average of $365,200), which remains over $100,000 less than what we are seeing in our markets. January’s national averages are not yet out, as the Hasson Company collects its own data to provide you with the most current and relevant market data each month.
There were 1,595 new listings in the Portland Metro area this January, representing a 60.8% increase from December’s 992 listings. Homes sold, however, slowed and is down 32.3%, but the percentage of homes pending is up 13.5%. Some of the slowdown in homes sold could be attributed to a growing trend researchers observed in 2016 – the rising rate of deal failures. Portland ranked 6th out of the ten metro areas with the highest percentage of failed deals last year. Trulia housing data analyst, Felipe Chacón, noted that the slowdown could be attributed to the combination of low inventory and high prices, making it difficult for some first-time homebuyers to commit, thus leading to deal failures. While this isn’t necessarily the reason for the decrease in homes sold, as our inventory grew in January, it will be interesting to see if that changes. The unusually snowy weather locally in January could also affect the trends in the coming months.
Comparing our local market to January of last year, we’re seeing less new listings (down 12.5%), slightly less homes sold (down 2.2%), and a decrease in homes pending (down 8.7%).
Home inventory increased slightly to 1.9 months (up from 1.3 in December), which is not surprising with the decrease in homes being sold this month. Our local markets are still less than the national average of 5.8 months in December.
The Tigard and Wilsonville area had the most new listings in January, but Southeast Portland continues to be the frontrunner in most homes sold.