Portland Metro Average Sales Price Up?

23 09 2010

“If so many houses are taking a hit on closing price, how come the Average Sales Price for Portland Homes is going up?”

 

Well, for starters, it is a big number thing.  Secondly, it is only very small increments of percentages we are talking about.

 In January we went down 3.7%, February down 3.3%, March we went up 2.6%, April up .06%, May down 2.3%, June up 5.2%, July 2.5% and August .08%.  That is a total of 1.14% year-to-date.  How it happens is simple numbers, if you take 30 sold $100,000 homes, the average price is $100,000 to start.  If 8 of them sold for a total of $18,000 more than $100,000 (one is up $1000, another $4000, etc.)—the average price increase is .6%.  Not even a full percentage.  If you take 10 gallons of milk priced at $3.00 each in your average grocery store, the average price is $3.00.  If, instead, two of those gallons were purchased at 7-11 for $3.25 a gallon, then the average sales price goes up 1.64%. 

Our market sold 156 homes above $1M last year and this year we are at 100 already with 28 pending.  This could be one big reason why the price is slightly higher.  Since $1M spread out over 13,185 closed sales is only $75.00 more for each house.  Add to it– 11 of those were over $2M and those numbers help make up for the deficiencies of the others.

THE GOOD NEWS is not that everyone’s house went up 1.14% so far this year (which is far from the truth); THE GOOD NEWS is that, as a whole– spread out over Portland’s 61,476 active, pending or sold homes to-date– the Portland Metro Area has not gone down in price for 2010 to date.  Well, at least, so far…. 

Onward!

Dustin Miller 

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