We discussed a few months ago that North Portland, not Southeast Portland, is the quadrant that most represents the averages of the overall greater Portland area. Northeast Portland, however, seems to still be the best investment opportunity within the city. The neighborhoods and communities within the reach of the Northeast Portland Real Estate market have gone from being an ignored aspect by homebuyers to being a selling point. The Northeast Portland market remains one of the more affordable quadrants while giving some of the best amenities in the city (let’s not forget about the Rose Garden). If Northeast Portland isn’t on your list for home searches then it certainly should be.
Northeast Portland remains an affordable market due mostly to the condos being sold there. The average Northeast Portland condo for sale goes for around $201k. There are a few unvalued gems in the Northeast Portland market, however, they are few and far between. The ever growing gap between the price of the average condo and the price of the average house (this is due to housing appreciation) makes it more difficult to own a house in Northeast Portland but not to own a home. According to our Northeast Portland Real Estate agents the average Northeast Portland house is priced at $362k which is nearly $160k over the average price of a home in Portland.
While the main culprit to the growing price division is housing appreciation, the competition within each market can have a profound effect on the price as well. There are currently 45 active listings and 16 pending listings (36% pending ratio) for condos that account for 2.8 months of inventory. For houses there are 533 active listings and 263 pending listings (49% pending ratio) accounts for 2 months of inventory. The shortage of inventory (standard “happy” market should be at 6-7 months of inventory) and the increase in popularity has led to a rise in the housing prices that home value appreciation alone cannot explain.
The competition within the market would be nothing without a high demand for such properties. The average Northeast Portland house spends 77 days on the market and has a list-to-sale ratio of 100% while the average Northeast Portland condo spends 79 days on the market with a list-to-sale ratio of 99%. Neither market is in need of any help as far as demand goes, but the shortage of inventory is certainly making it more difficult for new homebuyers to afford houses. However, such demand has led to the sale of 112 condos and 1,366 houses over the last six months. Perhaps affordability has little to do with the equation.
The growing gap between condos and houses is not a new concept. Most markets around the Portland area are experiencing the same phenomena. What sets Northeast Portland apart is its rich history and truly great community environment. Once a place of shame the Northeast Portland quadrant has become the new “it” place. If you enjoy all of the things that make Portland great then you need to look no further than Northeast Portland.