Portland City Center Condo Prices Down 10% So Far This Year
Median price points for condos sold in Portland’s city center continued to drop in the third quarter of this year. The 12-month rolling average for September came in just above the 300k mark, down from 316k three months earlier and 335k at the beginning of ‘09. Median asking prices are starting to catch up with this trend, dropping below the 350k mark for the first time in more than 2 years.
Accelerated marketing programs, such as the Atwater Autcion and prominent price cuts ( e.g. Block90) contributed towards the overall downward pricing trend. Similarly substantial list/closing spreads such as -189k (Westerly #309) or -92k (Meriwether # 1802) did not exactly help sellers overall. On a dollar per square foot basis the following picture emerged in the third quarter of this year (based on select projects with at least 3 comparable sales in the last quarter): John Ross – $308/SF, Edge Lofts – $300/SF, Westerly – $390/SF, Jefferson – $345/SF and 937 – $440/SF. Note: Averaging technique provides only a ballpark number, since it does not provide any details on finishes/views etc.
Roughly a fifth of all transactions were north of the 500k mark with only a handful of condos closing in the million dollar range such as Elizabeth Lofts #1502, a 3443 SF unit that finally sold for $1,97 million as well as the penthouse suite at the Casey (#1502) that went for $2.9 million. At the opposite end of the spectrum buyers in the sub 250k category had a choice of more than 50 units ranging from McCormick Pier at $142k (734 SF) to the Civic at $220 for a similarly sized unit.
Number Of Transactions Remains Flat
The third quarter typically marks the peak of the year as far as sales are concerned. However, in Q3/2009 the number of transactions remained essentially the same over the previous quarter, climbing by a mere 18 sales overall. Transactions also did not show much of a change over the same period last year with roughly 200 condos selling in the Pearl District, Downtown, South Waterfront and Northwest in Q3/2009. New construction sales accounted for about half of all transactions during this period, up markedly from previous quarters, an indication that developers are increasingly having to respond to the pressure in the capital markets and beyond. With 11 closings for the quarter, the top spot went to South Waterfront’s John Ross followed by 937 (8) and McCormick Pier (7) – both located in the Pearl.
Bank-owned condos in Portland’s city center constituted about 10% of all sales, roughly in line with previous quarters. The number of short sales declined to a mere dozen for the quarter.
Condo Inventory Stuck At 20 Months
Reflecting the busier period of the year, inventory (in months) has climbed steadily since January, settling in at about 20 months (12-month rolling average). By contrast, the Portland metro area as a whole is down to about 9 months. Vacancy rates are also higher than elsewhere in the city. Beyond the new construction units that sold in the last quarter an additional 25-30% was vacant at the time of the sale.
Nonetheless quality developments in good locations remain desirable and if priced appropriately don’t last much more than 30 days on the market, such as these:
- Civic #617, 730 SF, sold at 214k
- Park Place #304, 1255 SF, 2-bed, sold at 425k
- Eliot #710, 916 SF, sold for 312k
- Bridgeport #415, 840 SF, sold for 326k
- Henry # 1115, the smallest unit (736 SF), sold for 359k
What’s in store for Q4? Inventory is likely to shrink as several sellers pull their listings off for the holiday season. A substantial number of buyers will likely disappear as well. More than any other time of the year, sellers will be delighted to see your offer.
Posted by agent503 
Sales Pick Up As John Ross Drops Prices Below $300/SF
Posted by agent503 
Posted by agent503 
Foreclosures Increasingly A Problem For The Wealthy
Prefer something more contemporary? How about this 4-bedroom new construction home in Hillsdale with expansive views of Southwest Portland, the river and beyond.
Needless to say, the Lake Oswego area is one of the main contributors to the luxury inventory (in distress). Here’s a 5-bedroom home in Lake Grove that started out at $1.5M. Would you buy it at half price? As of last month, that’s what the bank is now offering it at.
Situated on SE 45 & Stark, this new development consists of three townhome-style condos, that were well received by notable design critics, but have nonetheless struggled to sell.
Urban Sky Development has done a number of single-family home projects in Portland, but is a newcomer to the condo market – let alone the high end. Prices start at 500k, so far only one out of eight units has changed hands.
Reminiscent of some of Frank Lloyd Wright’s work, this 4-unit project was developed by a NE Portland developer hoping to attract the eco-sensitive, artistic minded and well-heeled crowd.
Just a couple of blocks in from MLK, this 5-unit townhome style, green development is at a point – according to the listing agent- where it “must sell”. Homes start in the high 300s for a 4-bedrm, 4-level, 2000 SF carftsman.
Another one-hit-wonder that has been on the market for a whopping 2-years. There are still half a dozen homes left at this St. Johns condo project. Price points start at 169k. Some units are down as much as 50k. Still, there’s plenty of room for creative negotiations.
This mid-century-inspired condo project in North Portland is the development team’s entry-level response to the greener than thou movement sweeping across town (and the nation for that matter).
Homes valued at $500,000 and over Buyers who pay full price for a unit at or over $500,000 will receive $10,000 toward closing costs or upgrades, and a Nissan Cube.
Don’t have $500,000 to spend? No worries, you’ll still be rewarded for paying full price. This lovely Buddy Scooter and $5,000 toward closing costs, prepaids or upgrades are yours.
