Brand Story - The continuing trend of low supply and high demand remains steadily high in Portland.
According to recently released market trend reports, the number of condominiums listed for sale in Northeast and Southeast Portland dropped by 20% from September 2020 to December 2020 and the number of units sold increased from 52 in September 2020 to 76 in November and 66 in December. Between September and December, the average sale price increased from $366,306 to $377,127.
In Downtown Portland, the number of condominiums listed plummeted from 230 units in July 2020 to around 72 in December 2020. Between September and December, the average sale price increased from around $399,908 to a height of over $505,277 in November, before falling back to a little over $400,000 in December.
Comparing the condominium market against the housing market in Northeast and Southeast Portland, the inventory of single-family homes was a little over 650 units in September and fell to around 300 units in December, despite the average sale price remaining steady around $450,000. This illustrates the continuing trend of low supply and high demand that has remained surprisingly steady throughout the COVID-19 global pandemic.
A recent article in the Willamette Week discussed Portland’s continued desirability as a place to live, despite the many factors impacting society. The article referenced an analysis conducted by United Van Lines, stating:
“Based on an analysis by United Van Lines of about 125 metropolitan areas, Portland ranked 18th as a moving destination in 2020. That's down from ninth in 2019, and just behind cities such as Charlotte and Phoenix, but still ahead of regional magnets such as Denver and Salt Lake City. Meanwhile, Oregon as a whole remained the third-most popular state to move to, trailing just South Carolina and Idaho.”
While certain national media outlets have concluded that Portland is in the midst of its death rattle, the data clearly shows that Portland still holds real appeal and has plenty of life left. Regarding these market trends, Seth Prickett of Mahonia Realty, said, “We continue to see a very strong sellers’ market for single family homes in Portland. Due to the disruption downtown in 2020 and the growing desire for yards and bigger living spaces with more people working from home, the condo market has been more volatile, creating some good deals for those looking to buy”.
It is unclear what the future holds, but we will continue to monitor the market and keep an eye on whichever trends may develop in 2021.
Mick Harris, Labor & Employment Attorney, Tonkon Torp LLP
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