2014 Condo review!
As we settle into 2015, let’s take a look back at 2014. For the state of Oregon, prices were up about 7% for the year. In the condo market, in the main downtown, Pearl and South Waterfront areas, the number of sales were down to 755 sales compared to 2013’s 978 condo and town home sales.
In the Pearl district, a new building began to take shape ( see: Overpriced Cosmopolitan ) and is the first new project, other than apartments, to take place in a long time. The biggest surprise of 2014 in my mind has to be the interest rates. If you can recall, last year all of the experts were calling for much higher interest rates for the coming year with most predicting 5% to 5.5% by the end of the year. The facts…. Rates on the 30 yr closed at 3.875% for the year end. As you may have heard me in the past when I mentioned that you could replace all of the economist with all the weatherman in the world , nobody would ever know! Well “they” were way off this last year! The next chart shows you the projected appreciation for the next several years. As you can see, they were off a little in their 2014 appreciation projections!
While condo sales were down for 2014, luxury condos priced $1,000,000 and higher were up for the year with a 25% increase in the number of sales over 2013. While the number of sales for 2015 is expected to be higher, the appreciation is predicted to slow to the normal 3 to 5% range. Which building had the most sales in 2014? Well this was an easy one…Waterfront Pearl led all buildings with sales as they continued to convert the building back to ownership condos from rentals. Encore came in second as that building finally sold out it’s new construction project.
What should we expect from 2015? Stay tuned and check back here often to be updated in the Portland condo market!
If you have plans to buy or sell a condo in 2015, remember it pays to work with a condo specialist! Call Brad Golik and let him assist you with all of your condo needs!
Certified Condominium Specialist