And the winner of the 'largest inventory issue' is the Portland Westside between $400k - $650k. At 0.8 months of inventory available, it has become a complicated market to navigate for everyone involved. As hard as it is to believe, it is still possible to overprice a home even in the most severe of seller's markets and that's what has claimed many a good home. Anything on the market for over a couple of weeks gets subjected to the 'something must be wrong' tag. Buyers have to contend with a lineup of competitors all playing chicken with their over offer pricing. This has led to increased appraisal issues and sometimes outrageous demands by sellers looking to take advantage of leverage. That's the not-so-good news. The good news is that with patience and professional guidance, great homes can be won. Negotiating with intent, planning and attention to every detail matters when it comes to this competitive of a market place.
While listings and sales are up, appreciation in this segment for SW Portland has stalled at a Portland Metro low of 1.8%. Not what you would expect from a significant seller's market, but being first into the housing rush means that you cool off first as well. Hillsboro continues it's torrid pace with significant new construction availability and numerous move-up buyers. Sellers can expect heavy activity, but a somewhat more selective buyer group that steers towards not wanting any deferred maintenance or updating. Buyers have more to choose from than last year and with patience can find their perfect home, but be aware that in areas like Hillsboro and Beaverton the top 5% can get as much as similar homes in SW and NW.
Luxury homes on the Portland Westside have done incredibly well over the last 12 months with record highs for July and August in Portland. The real growth in this market has been western NW Washington Co, Hillsboro and SE of Hillsboro into wine country. This push into more rural areas to find luxury homes has not let up and looks to continue into the future. Sellers should have professional pricing analysis done as pricing can be tricky with current trends (many times to their benefit) and should also have a regional and national marketing plan when selling as a strong portion of out of state purchases in the $1M+ range occur on the Portland Westside. Buyers have the luxury of urban, suburban and rural in this price point with a lot of choices. Careful consideration for needs, budget and style can find some amazing options.
The close-in SW Portland $1.5M and up market has continued to gain momentum with outer NW Wash Co and Hillsboro also providing a significant increase in available homes. Modern floor plans and design have taken precedence over larger square footage homes with outdoor amenities also adding value. Sellers should price carefully as the 11.6 months of inventory do show a stronger buyer's market than in the past. Buyers will have plenty to choose from, but should be ready with a purchase strategy as the top 5% of homes do still go quickly in this luxury segment.
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