The end of summer stats are in! Below is a link to the Portland Metro Market Action Report for real estate activity in August 2015. Wow. Portland real estate was on fire for the last few months. We finished the month with under 2 months of inventory. Prices were up by almost 7%.  Now in mid September, I am seeing what I call a ‘flattening’ of the market which means to me that I am seeing fewer multiple offers increasing the sales price, appraisals taking less than 5 weeks, buyers have more than eight hours to view a property and make their best offer.

Closed sales in August increased by 18% over August 2014 and the median sales price increased by 7% over the same period of time in 2014.  What neighborhoods saw the greatest change? You will see that North Portland has been discovered and Northeast Portland remained extremely strong.  Read the report here: Portland Metro Market Report.

Sellers:  Jump into the market now if you have not already done it. If you price your property correctly, you should see it sell quickly. You are enjoying another strong seller market right now. BUT, we are expecting interest rates to increase this fall, and there is an election coming next year, each event of which will dent your market strength.

Buyers: Interest rates are going to increase. FHA loans are adding more requirements which are decreasing your ability to borrow as much (and in the Portland Metro Market, this can be treacherous).

Investors: I would recommend “watch”.  The Portland Metro Market is building lots of new rental housing to meet the strong demand of relocation residents. Smaller investors in the 1 to 4 property arena should do well in appreciation; keep a wise eye out to outer boundary areas like Cully in Northeast and Foster in Southeast.