The driving force behind Portland’s Pearl District condo sales is lack of inventory, creating a seller’s market. The inventory in months shows how long it would take to sell the remaining inventory. Pearl District’s inventory of condos would take a little less than two months to sell. The big story is how fast this market is. With only two months of condo inventory available for sale many condos sell within a few days. The last time inventory was this low was over a decade ago. Five to six months of real estate inventory is neutral. A neutral market does not favor sellers or buyers. Less than five months is a seller’s market, over six months of inventory favors buyers.
The RMLS (Regional Multiple Listing Service) reports the actual number of Pearl District Condo sales increased two percent over March, 2014. The average sold price of a condo in the Pearl District for March was $445,757, a seven percent decline over the same month last year. I know this is a surprise, it surprised me. The reason for this decline is the increase of condominiums in the price range of $200,000 to $400,000 with fewer over $400,000 on the market. Comparing the average price per square feet of $435 to the same month in 2014 shows a $2.00 per square foot decline in 2015.
Of the 28 Pearl District condos sales four units sold in zero days. Meaning the condo had a written offer before going into to the system. Buyers are waiting for condos to come on the market and act when word gets out of a listing. Twelve listings sold in less than 10 days, and five more sold in less than 20 days. The average days on the market for March 2015 was eight days. The same month one year ago the average days on the market was 68 days. Seventy-seven days on the market was the average for February 2015. This is the driving force behind Pearl District condo sales real estate market now.
The percentage of all-cash condo buyers is another reflection of how fast the market is. Forty-three percent of Pearl District condo sales were all-cash in March, 2015. This is a 60 percent increase over March 2014.
A fast market means buyers must be ready to act when they find the property they envision themselves living in. When you walk into the Pearl District condo that says “home” to you, be ready to write an offer with approval letter from your lender. Waiting means you will not have the option of taking that condo off the market, so other buyers will not view it, as you investigate the Home Owners Association records and have a physical inspection of the condo. Remember, you have two weeks to make your final decision on going ahead and buying or withdrawing.
Portland Condo Loft Search provides expert real estate services to Portland’s Pearl District condo buyers and sellers. Contact Lynda Jeffers today for more information on Portland real estate and for professional assistance navigating this sometimes complex home market.