PORTLAND, Ore. (KOIN) — Between the Federal Reserve decreasing interest rates at the onset of COVID-19 and Americans seeking new spaces to conduct their remote work in, the housing market boom caused by the pandemic was nearly inevitable.
Now, experts in the industry are seeing a decline in the housing market for the first time in a long time.
Economic data company FRED reported that in early 2020, the median home sale price in the U.S. was $329,000. For the past quarter of 2022, though, that same number was reported as $454,900. This, combined with heightened mortgage rates, has presented a challenge for families enduring the current cost of living.
Despite the increasing price of homes from 2020 to 2022, the year-over-year data shows a slowing market.
“In October 2022, home sales fell to 439,596 — a decline of nearly 30%,” Jonathan Jones with Construction Coverage said. “As total sales have declined, another important metric —the time homes sit on the market before selling — is on the rise. September was the first month since February 2021 where the median days on market for home listings exceeded 30 days. At the height of the market, the typical listing spent just 15 days on the market, but today the median listing will sit on the market for 35 days.”
According to technology and finance experts, the West Coast is experiencing this decline on a much larger scale. Thirteen of the 15 big cities that Construction Coverage says have had the largest drop in home sales in a year are in Oregon, Washington, Colorado, Utah, Nevada or Arizona.
The website used data from real estate brokerage Redfin to rank which large metros have had the most dramatic declines in home sales. Salt Lake City, Las Vegas and San Jose areas rounded out the top three, but Portland didn’t fall too far behind at No. 6.
Here is how the Rose City’s housing market has changed in the past year.
- Percentage change in home sales (YoY): -39.6%
- Percentage change in median days on market (YoY): +150.0%
- Total home sales per month (2022): 2,488
- Total home sales per month (2021): 4,117
- Median days on market (2022): 25
- Median days on market (2021): 10
Portland placed in between the Phoenix area at No. 5, and the Riverside area at No. 7.