Portland Real Estate Absorption Rates
First, let's discuss "Absorption Rates." The absorption rate is, bascially, the rate that homes sell in an area. The lower the absorption rate, the faster homes are selling (Seller's market). The higher the rate, Buyer's market.
- Sellers Market: 1 to 5 months supply of homes
- Neutral Market: 5 to 6+ months supply of homes
- Buyers Market: More than 6 or 7 months' supply of homes
How Is Absorption Rate Calculated?
To calculate the absorption rate, take the number of homes that sold in a month for an area and divide it by the total number of homes for sale at the end of the month. As you can see from the above graph, the Portland Real Estate Market has several Areas. To calculate the absorption rate for each area, I took the ACTIVE LISTINGS at the end of December 2011 and divided that number by the number of SOLDS, also the end of December.
A Year in Review - Portland Real Estate Absorption Rates in December 2010 Compared to December 2011
If this chart doesn't blow you hair back . . . these are the numbers comparing December 2010 to December 2011 absorption rates. You can clearly see that the Portland Metro Real Estate Market is changing. When I tell Buyers to think about buying seriously now . . . I'm not making that up.
Portland Real Estate Market Areas
Area 141 - N Portland
Area 142 - NE Portland
Area 143 - SE Portland
Area 144 - Gresham / Troutdale
Area 145 - Milwaukie / Clackamas
Area 146 - Oregon City / Canby
Area 147 - Lake Oswego / West Linn
Area 148 - W Portland
Area 149 - NW Washington County
Area 150 - Beaverton / Aloha
Area 151 - Tigard / Wilsonville
Area 152- Hillsboro / Forest Grove
More Portland Real Estate Market Reports
EBA Portland ~~ 100% BUYER REPRESENTATION ~~ 100% of the Time
EBA Portland, LLC is an Exclusive Buyer Agency serving the Metro Portland real estate market since 1999. If you’re a Buyer in the Metro Portland area (including: Beaverton, Tigard, Hillsboro, Lake Oswego, Downtown Portland,) and contemplating a purchase, talk with a Buyer’s Agent . . . better yet, talk to an Exclusive Buyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers. An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.
| Carla Muss-Jacobs 503-810-7192 Carla@carlahomes.com |
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This is a great report for the Portland Metro area & as you say your market is going to heat up soon based on those months of inventory. The turn around from the 2010 is eye popping as you say. It's going to be a good market I think for Portland this year!
Very nice report. Amazing how the graphs can make the numbers come alive and so much easier to understand. Nice work.
Really great Carla! Thanks for showing me what I should be able to do! LOL...okay, really no laughing. This is cool.
Deb
Wow, that's an eye opener! You're not kidding. This is time for buyers to get off the fence and get serious. Great report and thanks for a really straight forward explanation of absorption rates. A number of names are popping into my head that I will share this with. Thanks.
Love your chart, Carla. Nice presentation.
Tatyana
Carla - Very details real estate market report for Portlando Metro, well done!
Looks like the average Real Estate Market in Portland OR is neutral. Love the way you broke it down. Also I love the buttons on your blog. What did you use? Please share.