Sluggish home sales persist throughout Portland
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The Portland metro area's housing availability crisis is continuing to slow down home sales, per new data from CoreLogic.
Why it matters: The region's spring homebuying season got off to a more sluggish start than usual — elevated mortgage rates are dampening appeal, and a sustained lack of affordable housing options put buying out of reach for many, real estate experts tell Axios.
The big picture: Pending sales of existing U.S. homes plunged in April to lows not seen since the pandemic shutdowns, Axios' Courtenay Brown reports.
State of play: As homeowners shy away from moving, some shoppers have sought more options or better deals among new construction — although new home sales only represent a relatively small part of the overall market.
What they're saying: When mortgage rates go over 7%, home buying in Portland flatlines, Rachel Freed, owner of Urban Nest Realty told Axios via email. "We also have low, low inventory which means there is very little to buy."
- "The buyers who have been hit the hardest are the first-time folks who are in the lower price ranges," she said, adding that she's seen more cash in the market lately, a tool used by some to avoid high rates.
By the numbers: New home sales in Portland metro are down 35% as of March compared to 2019, per CoreLogic's data — 340 to 221, respectively — while sales of existing homes dropped 13% during the same period.
The bottom line: "There is no real indication of widespread price drops or a substantial decline in interest rates," CoreLogic economist Thomas Malone wrote in the report, noting that strong rental demand could spur more investor home purchases.