Downtown Portland Condo Report – August 2007

While I get many requests to update the Portland metro area condo market activity, my hunch is that most readers are looking most specifically at the downtown core market. With the huge investments in the Pearl District, South Waterfront, and even in established downtown areas (NW, Park Blocks, etc.), it’s no wonder. Without further ado, here’s a peek.


View Larger Map

Confining the search to the area shown above, 676 active condos were listed in Portland multiple listing service as of August 29. The average condo in downtown Portland will run you $558,000 and give you 1,168 sq. ft. of living space. Figure on spending on average about $478 per square foot.

Here’s a breakdown of active condo listings, by bedrooms:

Active Listings

 
Units
Avg.
List Price
Avg.
sq. ft
Avg. $ per
sq. ft.
Studio
82
$237,643
594
$400
1 bed
285
$370,036
857
$432
2 bed
277
$788,756
1,565
$504
3+ bed
32
$1,056,699
1,966
$542
TOTAL / AVG
676
$558,057
1,168
$478

The sale price versus original list price came out to less than a 1% difference since most units were new construction.

The high-end inventory (>$1 million) is robust, with 64 units averaging $1,579,000 list price and 2,335 sq. ft. in size. This equates to a whopping $676 per square foot and $101 million in available inventory.

So, what is selling? Well, the average condo sale in the past 3 months was $389,208 with 954 sq. ft. — clearly a run on smaller units with nearly $87 million in closed sales on 1-bedroom units alone in the last three months.

Sold Listings (3 months)

 
Units
Avg.
Sale Price
Avg.
sq. ft
Avg. $ per
sq. ft.
Studio
30
$261,492
642
$407
1 bed
277
$316,148
810
$390
2 bed
105
$587,982
1,368
$424
3+ bed
5
$1,028,760
2,108
$488
TOTAL / AVG
417
$389,208
954
$408

I had high hopes when checking on PENDING sales because 427 properties are idling in escrow. However, most of the pending sales were for units to be released upon completion in projects like the Civic, Casey, Cambridge, and Atwater.

Today’s most expensive condo in downtown Portland? A 3-bedroom, 3,100 sq. ft. penthouse unit on the 27th floor of the new Benson Tower, featuring a 360-degree view of the city, listed at $3.5 million. [I can arrange a showing for anyone pre-qualified :) ] Please note, the HOA fees are $1,200 per month.

So, it appears that the Portland downtown condo market is moving units reasonably well, considering the housing tempest blowing in the national media. The effects of tightened credit and mortgage meltdowns won’t be seen for awhile in this segment. Developers, I’m certain, are hopeful that the market can absorb these lingering high-profile project units–plus some new conversions that have come available–before the next wave of construction commences. The risky segment would appear to be in the larger, 2-bedroom units that are commanding a nearly $800,000 investment.

Like sellers of single-family homes in the Portland area, condo owners will need to factor longer sale times (or think ‘rental’) for their units while existing inventory sells off (at 140 units per month). I suspect speculative investors are sitting back for now.

If you have questions about specific projects, neighborhoods, units, or otherwise, leave a comment below or drop me an email. to ron “at” ronares.com.

[tags] Portland, Oregon, downtown, condo, condominiums, housing, development, Pearl District, South Waterfront, market, activity, real estate [/tags]

Source: RMLS, August 29, 2007. Data includes condos only, no townhomes or rowhouses. Note, some inventory may not show here if it’s being sold by owner or through the developer’s sales organization.

August 29, 2007 · Filed Under Communities, Market Activity

Comments

3 Responses to “Downtown Portland Condo Report – August 2007”

  1. chris on August 29th, 2007 1:19 pm

    Nice piece. The most northwestern part of your boundry extends past Riverscape into industrial areas. Are there projects extending past riverscape area you are aware of?

  2. Ron Ares on August 29th, 2007 1:37 pm

    Chris,

    I did not intend to imply the industrial wasteland area to the north in my rough map has any housing. I had to use a Thomas Guide grid for the RMLS data and it included that area, which I took too literally on my map.

  3. Ron Ares on September 19th, 2007 6:37 am

    Update to this story. You can count the Wyatt as the latest casualty of the soft condo market as they scrapped their condo plans and will develop as a luxury apartment. The developer had only sold 53 units (out of 244) in pre-sale.

Leave a Reply




CAPTCHA Image
*