PORTLAND REAL ESTATE MARKET - MAY 2024

Embracing the warmer weather, we’re excited to share insights from the May 2024 residential real estate market update, which shows promising trends and opportunities for both buyers and sellers. In May 2024, there were 3,508 new listings, marking an 8.3% increase from May 2023 and a 12.4% rise from April 2024, providing buyers with more options. Pending sales dipped 0.7% from May 2023 but increased 2.2% from April 2024. Closed sales rose to 2,140, a 6.6% increase from last year and 13.6% from April 2024, showing successful deal closures despite minor fluctuations.

Inventory slightly decreased to 2.3 months, indicating a balanced market, while market time increased to 86 days from 83 in April, giving buyers more decision time. Comparing the first five months of 2024 to 2023, new listings are up 6.8, pending sales are down 0.7%, and closed sales are up 0.4%.

Interest rates have recently dropped a bit and are hovering around 7% easing the burden of higher rates slightly. The Fed is now predicting just one interest rate drop in 2024, as opposed to the three drops previously forecasted for this year. Economic indicators remain fairly strong indicating not much will change in the coming months. Many buyers are choosing to move forward rather than wait out rate drops that continue to get pushed out.

Average sale prices rose 2.2% to $601,200, and median prices increased 1.9% to $535,000 year to date, indicating healthy demand. Properties in the $400K-$500K range remain popular, making up 20.4% of closed sales in May 2024.

The data points to a positive outlook for buyers and sellers. Increased listings provide more choices for buyers while rising sales and stable prices benefit sellers.