Portland Condo Sales Report Q2/2009

Posted on 07/20/09 3:24 PM

Meriwether Condos, Portland, OR

Portland City Center Condo Sales Double Over Last Quarter.

Spurred by further price reductions, second quarter condo sales in Portland’s city center were up almost 100% from Q1. Roughly 180 condos sold in the Pearl District, South Waterfront and Downtown areas combined, up from just under a hundred in the first quarter. June was a particularly strong month ringing in a total of 75 condo sales, a far cry from the mere 17 units that sold in January. Second quarter sales were at about 2/3 of the volume recorded during the same period last year, which saw more than 250 condo transactions close in Portland’s city center.

With just over 80 transactions the Pearl District accounted for the bulk of the sales over the second quarter. The Edge Lofts took the top spot at 9 transactions, followed by the Elizabeth Lofts where seven units changed hands. Roughly a dozen condos sold at the South Waterfront, the majority at the John Ross. Approximately a third of all city center condo transactions were all-cash. Here’s a sample of some of the condo deals that went down in Portland’s city center over the second quarter:

-John Ross, 2-bed, 2200 SF, listed in early ‘09 for 799k sold for 659k

-Meriwether, true 1-bed, 890 SF on 13th floor sold for 307k

-McCormick Pier, 1-bed, sold at $187/SF for 140k

-Casey Condos, 2-bed, 1650 SF on 14th floor, most recently listed at 995k, sold all cash for 670k

-Strand, 2-bed, 1600 SF sold for 60k less than asking price at 449k

Condo Inventory Substantially Reduced

Much like in the first quarter of this year, the number of active city center condo listings continued to hover around 900 per month. Increased sales in Q2, however, reduced inventory (in months of supply) over Q1 by as much as 50% – bearing in mind that Portland’s “arctic blast” created somewhat of an anomaly as far as January’s sales numbers are concerned.

Nonetheless the overall trend towards lower levels of inventory is encouraging: inventory levels peaked in Feb/Mar at more than 20 months of supply, but fell off to the low teens, settling in at just under 12 months in June. City center condo inventory is now at levels seen a year ago and slightly above the Portland metro market as a whole. Historically inventory levels tend to swell somewhat during the summer months. Lower than normal interest rates and developer incentives may yet lead to a reversal of this trend. We’ll know more at the end of Q3!

Median Sale Prices Leveling Off

Median sale prices appear to be recovering from their 52-week low at the beginning of the year. Sale prices for city center condos climbed steadily over the first and second quarter, but dropped again in June, reflecting a substantial amount of entry-level condo sales rather than falling prices as a whole.

For the time being median sales prices remain in the low 300s. Roughly a third of all city center condo transactions closed below $250k. About thirty condos sold for more than 500k, clearly favoring those who paid all cash.