Significant Price Reductions Spur Sales
Most Desperate Sellers Slash Prices By 20%
Low interest rates as well as federal and local incentives have helped reduce residential inventory over the last quarter, bringing inventory down to about 11 months – roughly the same level we were at about a year ago. Seller concessions have also contributed towards increasing buyer activity. Three of Portland’s high-profile condo developments announced further price reductions last week, others will likely follow suit in the weeks ahead. Similarly the majority of Desperate Sellers have backed off initial price points by more than 20%.
Price cuts have been particularly steep in Happy Valley, where more than than 45 Desperate Sellers have reduced prices by more than 20%, several by as much as 35 per cent. A similar trend is unfolding among Desperate Sellers in Portland’s South Waterfront – roughly a dozen condos at the John Ross and Meriwether are now priced at levels last seen in 2004.
High Vacancy Rates Keep Pressure On Sellers
Vacant listings in the Portland metro area continue to dominate the overall supply. Of the roughly 2,000 homes that sold in Multnomah county in the second quarter approx. 1,200 were vacant. As a result, the number of properties included in the Database, which only tracks vacant listings has increased steadily over the last three months. The Database now includes almost 300 properties.
