Condo Sales Up, Inventory And Pricing Down
Homebuyers Credit & Auctions Drive Condo Sales Volume To Record Highs
The number of condos that sold in Portland’s city center increased dramatically during the second quarter, as buyers scrambled to meet the deadline for the federal government’s tax credit. Roughly 270 condos sold in the downtown, NW, Pearl District and South Waterfront neighborhoods, essentially doubling the volume for the previous quarter. Sales came in substantially higher than the twelve month average in April, May and June.
Sales volume was also significantly impacted by a number of auctions, notably at the John Ross. Some 45 units were auctioned off at this South Waterfront development in April, and subsequently closed before the quarter end. Sales were also high at neighboring Atwater Place, where a record 16 units closed during the second quarter. Other notables include the Meriwther (9 closings), McCormick Pier (8) and the Harrison (8).
Downtown Re-Sale Condo Inventory Back To Normal Levels
Inventory levels, which had begun to climb at the outset of the year retreated to below 10 months. Would-be sellers wary of a double dip appear to be holding off at this point, thus keeping inventory at levels not seen since Portland’s housing market bubble burst in late 2007. Bear in mind, these numbers largely reflect re-sale inventory. Several new construction projects still have 40-50% vacancies (e.g. Atwater, John Ross).
In the Pearl District condo re-sale inventory remains high at the Bridgeport (13 listings), Marshal Wells (11) and the Elizabeth (9). Roughly 25 downtown Portland condos for sale are now bank-owned, and more than 65 units are listed as short-sales. The latter has been on the rise at several Pearl District condo developments such as the Pinnacle and the Elizabeth.
Condo Pricing Continues Downward Trend
Portland’s downtown condo prices had ticked upward at the beginning of the year, but appear to be continuing on a downward trajectory as we head into the third quarter. Median price points (twelve-month rolling average) in Q2/2010 remained around 270k, about where they were in the last quarter of 2009 and roughly 12% below where they were a year ago.
Once again, the John Ross Auction contributed to lower overall price points as a result of a number of sales in the 160k range. Other entry level contributors include the Empress Condos (starting at $55,000) as well as Hamilton Arms and Cardinell View Lofts. Entry-level does not necessarily mean small; the majority of condos that sold during the second quarter were larger than 1,000 SQFT, but only 7% of all sales were in the +2,000 SQFT category. Banks unloaded 36 downtown condos during the second quarter, equaling roughly 12% of all sales that occurred during this time, significantly less than during the first quarter.
