Pacific Northwest Real Estate Outlook

While things are moving at a more common pace than we saw through the pandemic, we are still in a strong housing market with prices expected to continue to rise about 5% per year.

Cost of buying now compared to May of 2022

Cost of buying now compared to May of 2022

For the Portland metro area: comparing the first eleven months of 2022 to the same period in 2021, new listings (35,093) decreased 9.7%, pending sales (25,721) decreased 23.5%, and closed sales (26,473) decreased 18.5%.

Comparing 2022 to 2021 through November, the average sale price has increased 7.4% from $571,100 to $613,300. In the same comparison, the median sale price has increased 8.1% from $508,900 to $550,000.

In Washington: Northwest MLS figures show both pending and closed sales fell sharply from a year ago, but median prices system-wide edged up slightly (0.88%), from $570,000 to $575,000. Pending sales (mutually accepted offers) across the 26 counties in the report were down 40% (dropping from 8,571 a year ago to 5,106) while closed sales fell 42% (declining from 8,976 to 5,194). NWMLS figures show brokers closed an average of 173 sales per day across all counties.

The volume of closed sales, at 5,194, was the lowest level since February (5,147) and January (5,085). Compared to January’s median price of $555,000, last month’s buyers paid 3.6% more ($575,000).

Data from the multiple listing service shows 15.84% of November’s sales topped $1 million, while a year ago 13.96% of sales were at that level.

If you’re concerned about mortgage rates, speak with your lender about a 3-2-1 buydown. If the rate is 7% now, your rate the first year would be 4%, 2nd year 5%, 3rd year 6% and for the remainder of the term it goes back to the normal rate.

According to the Mortgage Broker Association, rates are projected to be at 5.4% by the end of 2023 and 4.50% the end of 2024, so chances are you can refinance out of higher rates.

Buying now is likely to net you more equity in 2024 than waiting on the market.

*Info from RMLS and NWMLS