Portland Rental Market Gets Tight

While the homes sales market is stuck in a low gear, the Portland rental market has been in overdrive, with rents rising and vacancies shrinking.

A recent article in Portland’s local daily newspaper highlights the increased demand for apartment rentals, as well as the rising rent rolls. According to local property managers, average rents in the Portland area have risen 8% in the past year. The average 2-bedroom, 1-bath apartment in the Portland metro area runs $743 a month, although there is a wide range of pricing from area to area (see chart below).

While most property managers plan on an 8% vacancy rate (average 1 month per year), recent vacancies are below 4% (even lower in the city core). And because new apartment development slowed during the recent housing downturn, new inventory will be slim until developers find the wherewithal to build again — meaning rents aren’t going down anytime soon.

Are these reasons to consider a purchase instead? Not if your job situation is tenuous, or you’re new to the area, or the responsibilities of owning aren’t your thing. But at some point, the trade-offs may be worth a second look.

Portland Apartment Rental Market

Data source: Metro Multifamily Housing Association, via The Oregonian Business section. Full coverage at Oregonlive.com.

October 22, 2011 · Filed Under First-Time Buyers, Livability, Market Activity

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Portland Real Estate Activity & Statistics – September 2011

Portland’s real estate market continues to show steady…um….steadiness in September 2011 results.

Home sales slowed in September–a normal, seasonal pattern to be sure, however the level was nearly 200 units higher than in September 2010. Year-to-date, 2011′s total homes sales are slightly ahead of the pace set in 2010.

Inventory levels continue to stymie buyers as available listings are at the lowest levels since March 2007, when homes lasted all of 10 nanoseconds on the market. The 10,666 listings available at the end of September would last 6.7 months at the current pace of sales. New listings for the month (2,501) are down 30% compared to September 2010.

The median sale price across the market has been steadily creeping upward since its low in February, recovering to late 2010 levels. And although the median sale price has perked up, the average sale price tailed off slightly, suggesting that properties in the higher price ranges suffered some declines during the month.

Records show a decline in the percentage of homes sold in a distress situation. The early part of the year saw 35 to 40% of total homes sold in a short sale or bank-owned foreclosure, but that rate has steadily fallen now below 30%, giving credence to the rumors that banks may be holding back some inventory.

Market Summary

September 2011 Prev. Month -
August 2011		 Last Year -
September 2010
Median Sale Price $230,800 $225,000 $240,000
Average Sale Price $268,200 $271,800 $279,900
Closed Sales 1,586 1,805 1,399
Pending Sales 1,861 2,187 1,584
New Listings 2,501 2,879 3,549
Active Listings 10,666 11,276 14,714
Distress Sales 26% 27% 32%
Total Market Time * 131 134 days 131 days
Inventory (in months) 6.7 6.2 10.5

Below is activity by market area. Please note that median and average sale prices are year-to-date. The appreciation numbers are a 12-month average compared to the previous 12-month average. Total market time is the number of days between the date it went on the market and when it received an acceptable offer.

Market Report by Area

Area YTD Avg.
Sale Price		 YTD Median
Sale Price		 12-Mo. Change Total Mkt
Time*
Lake Oswego / West Linn $431,200 $372,000 -3.7% 166
West Portland & Downtown $392,100 $330,000 -2.2% 151
NW Washington County $362,000 $322,500 -1.3% 91
Tigard / Tualatin / Sherwood / Wilsonville $277,600 $256,000 -7.2% 174
Northeast Portland $267,800 $229,000 -5.5% 99
Milwaukie / Clackamas $238,100 $219,000 -10.9% 116
Oregon City / Canby $232,000 $210,000 -11.5% 123
North Portland $221,400 $209,500 -4.5% 133
Southeast Portland $214,400 $182,000 -8.1% 98
Beaverton / Aloha $212,200 $194,000 -13.0% 106
Hillsboro / Forest Grove $208,300 $191,000 -8.8% 143
Yamhill County $199,400 $174,800 -6.0% 159
Gresham / Troutdale $195,100 $178,000 -8.1% 157
Columbia County $160,800 $149,500 -13.0% 201

October 17, 2011 · Filed Under Market Activity

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