Residential real estate activity in the Portland metro area was down in the first quarter of 2023 across the board.
Closed sales fell to 5,177, down 34% from the same quarter last year. The average of median sale prices in 130 ZIP codes slipped to $534K, down 3% from Q1 2022. And the speed of sales slowed considerably with the average of median time on market rising to 26 days, a 283% increase from Q1 2022, according to data provided by the Regional Multiple Listing Service (RMLS).
Sales vs. mortgage rates
And activity might not improve soon as the U.S. Federal Reserve again raised the federal funds rate to 5.1%, its highest level in 16 years, in its effort to put the brakes on inflation. Mortgage rates have followed suit, more than doubling since early 2021 and prompting many potential homebuyers nationally and locally to put off buying a home.
A recent press release from the National Association of Realtors noted that existing U.S. home sales fell 24% in March, month-over-month, and 22% from a year prior.
“Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said NAR Chief Economist Lawrence Yun in the release. “Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It’s a unique housing market.”
Indeed, home inventory figures from RMLS for the Oregon side for the metro area showed the supply of homes for sale reached a two-year high of 2.7 months in January, but retreated back to 1.6-month supply in March as 26% fewer listings came on the market versus a year prior.
Fastest-cooling ZIP codes from Q1 2022 to Q1 2023
Last week, we took a look at the best-performing Portland ZIP codes for real estate. But now in the table below, we examine how ZIP codes ranked in terms of declining market metrics. ZIP codes were ranked on six factors:
- Homes sold change, Q1 2021 to Q1 2022
- Percentage homes sold change
- Median price change
- Percentage median price change
- Median days on market change
- Percentage median days on market change
Mapping sales in Q1
Below is another view of the data mapping where the number of sales changed the most in Q1 2023 compared to the same quarter last year. Hold your cursor over the ZIP codes and the legend bar to see more information.
Mapping median prices in Q1
We’ve also plotted the change in median sale prices in another map below, showing how prices have changed in individual ZIP codes across the region. The majority saw price declines, though they weren’t as dramatic as the decline in number of sales.
Mapping days on market in Q1
Finally, the third (and last) map below shows how time on the market broadly increased, often by triple digits, across the Portland metro area.
