How Much Portland Real Estate Inventory is Out There?
Understanding Portland’s Real Estate Inventory: What It Means for Buyers and Sellers
With scenic outdoor wilderness and charming neighborhoods, it’s easy to see why Portland ranks in the top lists of places to live. If you’re thinking of buying or selling your home this summer, understanding what the Portland real estate inventory looks like and its future projections, will help with your decision-making process.
What is Real Estate Inventory?
Also called “active listings” or “homes for sale,” real estate inventory refers to the number of homes on the market. Any time a seller lists a property, it’s considered part of the real estate inventory. The level of inventory calculated is variable since it’s a balance statement rather than a cumulative measure. Changes in the market can happen quickly, which is why the numbers for real estate inventory are captured at the end of each month. And there’s a formula to figure it out: divide the number of homes on the market by the number of homes sold per month (on average) during the previous year. For example, if there are 56 active homes currently on the market and last year 236 homes sold in the same area (or 19.67 homes sold per month), that means there’s a 2.85 months supply of inventory – so just shy of 3 months.
What did Portland Real Estate Inventory look like this past Summer?
For buyers, more than 6 months of real estate inventory leads to lower prices and offers that are more likely to be accepted under the listed price. Since 2012, Portland real estate inventory has been rising steadily, especially this past July. Low housing inventory creates a competitive real estate market, but for Portland, real estate inventory is at 2.1 (just over 2 months), a 31.3% increase compared to last year.
As a seller, a balanced market is considered 6 months, so despite the increase in real estate inventory, it’s still a seller’s market. Less than 6 months of inventory favors sellers because there are less homes for a potential buyer to chose from. If you’re looking to sell your home, consider the inventory within your home’s general area. The fastest selling areas in the Portland Metro area for this past June were Beaverton (20 days) and Hillsboro (22 days). The slowest selling areas were West Portland (57 days) and Lake Oswego (52 days).
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