March is a month of new growth. First the crocus, then the daffodils and lastly the tulips emerge from the ground along with the new homes coming on the market. This year it appears that the buyers are beating the animals at gobbling up the new growth on the market. Closed sales are up over 40% this month. We are not used to breaking new records in the housing market after the groundhog predicts an early spring. This market is like harvesting tomatoes in August for Portland!
Compared to Last Year
- Inventory down to 1.3 months from 1.9.
- Closed sales up 4.4%.
- Pending sales down 9.1%
- New listings down 5.2%.
- Average Sales Price up 14.2%
- Median Sales Price 15.5%
Compared to Last Month
- Inventory down to 1.3 months.
- Closed sales up 41.5%
- Pending sales up 10.4%
- New listings up 17.7%
- Average Sales Price up 5.5%
- Median Sales Price up 6.3%
The last time we had a jump this high in a single month was August 2005 of 5.4% for the Average Sales Price and 5.18% for the Median Sales Price. Which means this is the highest price increase month-to-month in Portland’s recorded history!
Sure enough, the figures for the average sales price and the median sales price are also the highest we have ever seen in both categories.
Is it a Bubble? Right now, all indicators are pointing more toward a slowing down to a normal balanced market rather than a burst of a bubble down the road. Incomes are barely keeping up and regulations have kept a tight rein on unsecured debt in the mortgage-backed securities market.
The Full Report: March Market Action 2016