Portland Condo Prices Stabilize Even As Sales Dip
PORTLAND CITY CENTER CONDO REPORT Q3/2010
Condo Sales Settle Down, Dip Below 12-Month Average
During the third quarter roughly 180 condos sold in Portland’s city center. Portland condo sales volume for the quarter was down by almost a third over the previous quarter, which had been marked by somewhat of a buying frenzy as the First Time Homebuyer Tax Credit drew to an end. With the exception of August, sales per month trended below the 12-month moving average.
Among Portland’s city center neighborhoods, the Pearl District recorded the highest number of sales (approx. 55). Sales were also strong in Downtown (40). However, the highest number of sales per condo development was achieved in a different neighborhood; more than 15 units sold at The John Ross in Portland’s South Waterfront district. An additional eight units closed for the quarter at neighboring Atwater Place condos. Strong performances were also put forward by the – largely distressed – Civic Condos (6) as well as new construction developments such as 937 and the Westerly. Life remains tough for the developer at the Encore condos, the last condo project to hit Portland’s Pearl District condo market; in Q3/2010 only one unit closed out of a remaining stack of more than 100 units (some have already been converted to rentals).
Roughly 12% of all Portland city center condo sales were bank-owned. On a positive note, the share of short sales continues to decrease, now only constituting 5% of all sales.
After Brief Reprise Inventory Resumes Ascent
Reflecting a lower pace of sales, inventory levels for city center condos in Portland have started to climb again, eclipsing the 12-month average for the quarter. At the current rate of sales, it would take about 13 months to sell out the existing inventory. These numbers are based on the total number of condos listed for sale in Portland. New construction inventory not listed for sale does not feature in this calculation. If it were included we’d probably be looking at somewhere around 20 months.
In the Pearl District condo re-sale inventory remains high at the Pinnacle (13 listings), Marshal Wells (10) and the Avenue (8). If you are looking for bank-owned condo inventory in Portland’s city center, your options are largely limited to sub-par developments such as the Quintet and select newer construction projects and conversions.
Pricing Appears To Be Stabilizing
In spite of a slower pace of sales, price points have continued their upward trajectory in the third quarter. The median sales price for a city center condo in Portland (based on a 12-month rolling average) is now above the 290k mark. Although prices for the quarter remained below where they were a year ago, the third quarter marked the second consecutive quarter of price appreciation and appears to be stabilizing for the time being.
Bear in mid this is the median price and as such reflects a large volume of sales in the entry-level segment at fringe locations such as the Cardinell View Lofts or the Broadway View Condos. Roughly 50 condos sold for more than half a million dollars in the third quarter of 2010. Penthouse #4 at the Metropolitan Condos took the top spot at $2.75 million, roughly 70k below the original list price.
Several new construction projects are approaching the final 10% of their inventory and are demonstrating a higher level of motivation to close out their remaining units.
Cover image courtesy of frozenchipmunk
