2012 Condo Stats… and what to expect in 2013.
It could be said that the bottom of the market is finally here! I believe that 2013 will be a fantastic year in the real estate market and we will see prices slowly begin to climb…we already have a little! Before we talk more about 2013, lets review the previous year first. This discussion will include the condo and townhome markets priced $150,000 and higher and primarily the downtown condo markets with these zip codes: 97201, 97205, 97209, 97210 and 97239.
- 2012 ended the year with 681 condo and townhome sales, down 3.2 % from last years 704 sales.
- 2012 brought us only 3,078 new listings to the market, down 34% from the previous years new listings
- The average sales price was up 10% to $409,000
- The average price per square foot was up in 2012 to $333 pr/ft, up 8.8% from 2011’s $306 pr/ft.
- Average days on market has steadily dropped from last year. Current year average was 99 days. Today we are at about 85.
What is happening now!
The biggest issue right now is our current lack of inventory! We started last year at about 8.4 months of inventory. Today, we are sitting on about a 3.4 months supply. It has become a very good time to sell your condo! With that said, sellers must still price their home correctly. Many sellers still have the mentality that they want to sell their condo at ’06 prices… NOT going to happen! For buyers, condos that are priced correctly will begin to sell much more quickly. If you see something you like that has been on the market awhile, be patient and watch for price reductions. If your agent is a condo specialist and knows the pricing in the market, be ready to make an offer. Yes, we are starting to see multiple offers again in some parts of town.
If you are looking to buy a condo in the near future, your timing couldn’t be better. Prices will begin to rise ( we believe 4-5% a year in Portland, up from the national average of 3.1% that is expected) . Interest rates are still amazing at 3.5%. Economist believe that by the end of 2013 we will most likely be looking at 4.5% . What does this mean to you as a buyer. It could be the difference between being able to afford a 2 bedroom unit or a one. It could be the difference in your payment that could have gone to paying you monthly HOA fees!