Condo and loft sales for the Portland area from The Pearl District down to South Waterfront continues to move along nicely. With 43 sales in the +$200,000 market we are pretty much staying steady with where we have been on the monthly totals the last few months. July could be very different though as we currently have 90 properties in a Pending status for this area of the condo and loft market.
Lower end condos outpaced the high end this month with no closings over the $1,000,000 mark. The low end of the market certainly looks as though we have hit bottom with newer listings in some areas getting multiple offers. Part of the reason for this seems to be the low inventory we are seeing which is somewhat unusual for this time of year. One possible reason for this low inventory seems to be that more people are renting out their condos instead of putting them on the market…somewhat of a catch 22 here. The rental market is hot and monthly rentals have gone up. Now with inventory low, sellers are able to push their price a little as choices for buyers are limited. Not a bad time for owners to sell with current inventory under 4 months!
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Portland Condo sales for November
Condo sales for the month of November dropped nearly 25% from the previous month in which there were 48 sales in the Downtown, Pearl District and South Waterfront areas. In the Portland condo market in these areas, with units priced above $200,000, there were 36 sales for November. Taking the #1 spot for Portland condo sales for the month was 937 Condominiums in the Pearl District with 5 sales. Following 937 with 3 sales was The Elizabeth Lofts with 3 sales, The Metropolitan with 2 sales and Atwater Place also with 2 sales.
An important trend to look at is the number of Portland condos and lofts that are selling at more than 5% off of their original listing price. This can happen typically, for one of two of the most common reasons: 1st , sellers believe their condo is worth more and won’t budge on their pricing…until they HAVE to. Often leading the sellers to chase the market down and eventually selling for less than they could have if the unit would have been priced correctly from the beginning. 2nd, in competitive situations with competing agents, some agents will “Buy” the listing! What this means is that the agent will tell the sellers their unit is worth more than what a competing agent may have stated the value at. The overpriced unit will then sit on the market with very few showings and then the agent, after forming a relationship with you, will then “encourage” you to lower the price! When this happens, many times the unit becomes “stale” and the price reductions just continue. This, unfortunately, is something that is done by only a few and is a huge disservice to our industry and most importantly, a huge disservice to you, the seller.
A prime example of what can happen with a listing can be witnessed this month with a unit at The Metropolitan that recently went pending. Originally priced at $899,000, this unit was priced over $100,000 more than a similar floor plan a few stories lower. Had it been priced more competitively with the lower unit, say $40,000 more than the lower unit, it very well could have gotten an offer closer to it’s list price. Now, after chasing the market down, it most recently went pending at $800,000 and will most likely close somewhere well below $800,000. ( Update*** This unit SOLD for $770,000… only $10,000 more than the unit 5 floors lower***) This will be between 11-14% off of the original list price.(14.3%)
If you plan on selling your condo in the near future, keep this in mind. A condo that is priced correctly will most often sell for more than if you try to over price it with the idea that you will drop the price if you don’t get interest. This strategy almost never works in your favor. In fact, a unit that is priced at the market will often deliver much better end results for the seller.
When pricing your unit, keep these thoughts in mind:
The market value of your condo IS NOT
- What you have in it
- What you need out of it
- What it was appraised for
The market value of your home IS
- Based on today’s market
- Based on today’s competition of units
- Based on today’s financing availability
- Based on today’s economic condition
As a seller, you control the price you ask and the condition of your unit. You do not control market conditions or your homes value!
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