Elise Loschiavo's Portland Condo Report is here! The report is packed with insightful and in-depth information that includes Portland condo inventory, the pace of the marketplace, what’s selling, new development, and forecasts where condo sales are headed in the coming year. Below is brief overview. Click HERE to view the full report.
2023 Portland Condo Sales Market Review
- Citywide condo values went up again in 2023. A majority of the sales were second home sales, new construction, divorces and estate sales.
- The number of condos sold stayed relatively flat but the price for existing condos rose 9% and new construction units were up 33% per square foot. The average downtown price per square foot jumped 19%, likely due to large new developments completing construction during that time. Off-peninsula condos saw a more modest 6% increase.
- Conventional 30-year mortgage rates fluctuated throughout the year between 6.5-8% settling around 6.8% in early 2024. Constrained inventory defined the market, as owners holding mortgages from when rates were at historic lows are still reluctant to list properties and lose "plum" interest rates.
- There are plenty of buyers paying cash. Nearly 60% of all condo sales over $500,000 went to cash buyers, presumably enjoying the fruits of a booming stock market.
2023 Condo Development Review
- Of the 99 new condos that were completed in 2023, only 60 have sold. These units were located at Daymark (75 Chestnut Street) and 218 Washington Ave. Neither one of these projects are still with the real estate brokerages that originally marketed the projects. Location may be an issue as many of the remaining units reflect waterfront pricing in challenging locations.
- Stevens Square, an over-55 community, is now complete and sold out. They have begun presales for Phase 3, and two more phases are planned in the next decade. The remaining projects that are mid-construction have sold at a brisk pace, with only a handful of units remaining.
- Dougherty Woods will be the first income-restricted condo project built in several years - expected to begin pre-sales this Fall.
2023 Development & Municipal Review
- The price of new construction condos rose 33% year over year on a square foot basis, shifting buyer focus to existing buildings, especially for smaller units. Very few new condo projects appear to be in the works due to ongoing city planning challenges and resident opposition to new construction in their neighborhoods.
- Portland residents have been warned they could face a 9.5% property tax increase due to state and federal funding cuts, a $10 million school budget deficit and the increasing costs of municipal and social services.
- The Portland city council recently voted to allow up to 4 units on any residential lot in the city and eliminated parking requirements.
2024 Outlook: Predictions for the Portland Condo Market
- Values will be steady for existing condo sales, and new construction condo pricing will continue to rise. Low inventory will again fuel multiple offers on units that present well, do not have deferred maintenance and are priced competitively. Demand will stay high at the upper end of the market.
- Out of state buyers will continue to flock to Portland.
- The outlook for mortgage rates is optimistic and most experts believe that rates will drop further going into 2025. However, a large portion of condos will continue to be purchased by cash buyers.
