In September the softening of our real estate market finally caught up to Northeast Portland, where months of supply swelled to almost 10 months.  The simple rule of thumb to label a real estate market a “sellers market” if there is less than 6 months of inventory, a “balanced market” if there is about 6 month, and a “buyers market”if there is more than 6 months of inventory.  September closed volume and under-contract volume are both off significantly, resulting in the inventory build.  To compare September pricing, sold volume, under-contract volume, new listing volume, total inventory, and days-on-market trends for NE Portland check out our September Market Analysis for Northeast Portland.

Pricing moves have been less dramatic in NE Portland than volume and inventory changes, although pricing adjustments typically lag underlying shifts in supply and demand.   First time home-buyers are just now beginning to see prices that are more attractive than they’ve been so far this year.  Through the summer months, the lower priced, smaller homes have tended to hold steady.  Notice in the chart below that the largest price declines have been for properties with two or less bedrooms.

Interestingly, housing inventory in Northeast Portland is actually lower for homes priced from $250,000 to $400,000 than for homes priced below $250K.  To examine the inventory by price, check out our NE Portland Housing Inventory by Price Report.

The condo market in NE Portland softened dramatically in September, and months of supply shot up from 10 to 18 months.  This was not a function of new supply, but instead the product of a September sales rate that approximately half of the summer sales rate.   With an 18 months of supply currently on the market, we’re expecting to see further downward pressure on condo prices, and expect December might be a good time to be a condo buyer.  If you’re interested in Northeast Condos, check out our September Market Analysis for Northeast Portland Condos.  Detached single family homes have not softened as dramatically as the condo market; closed sales in September were actually higher than in August.   However, pending volume in September was soft, leading to a moderate increase in inventory supply for the month.  To see more, check out our September Market Analysis for Northeast Portland Detached Homes.

We have noticed some compelling deals over the past few weeks, and have been in a number of these prospects to make sure they look as compelling in person as they do on line.  If you have noticed any deals you think look great, feel free to post a comment.  If you want our recommendations, you’ll have to call.

Related posts:

1. September is Deal Month in SE Portland
2. Northeast Portland Real Estate Market Update November 2008
3. November 2008 Portland Real Estate Market Update
4. Portland City Limits Real Estate Market Report May 2008
5. Northeast Portland Real Estate Market Report - May 2008

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