The Context of This Report
This report looks at the residential Columbia Gorge housing market data within the last month. Because the Columbia Gorge can vary drastically in housing prices, this report is intended to illustrate the market as a whole.
This includes data points such as, the average number of homes for sale, days on market, sold to list price ratio, and absorption rate. For a detailed report on an area near you – please Contact me, Brett Stomps, for a custom report. Contact Brett.
Homes For Sale, Pended, Sold
April 2023 was a Neutral market! The number of for sale listings was up 28.7% from one year earlier and the same as the previous month. The number of sold listings decreased 37.8% year over year and decreased 1.8% month over month. The number of under contract listings was up 45.8% compared to previous month and down 18.1% compared to previous year.
The Months of Inventory based on Closed Sales was 3.1, up 105.9% from the previous year. The Average Sold Price per Square Footage was up 11.6% compared to previous month and down 2.9% compared to last year.
The Median Sold Price decreased by 7.3% from last month. The Average Sold Price also decreased by 2.1% from last month. Based on the 6 month trend, the Average Sold Price trend was “Neutral” and the Median Sold Price trend was “Neutral”.
The Average Days on Market showed a neutral trend, an increase of 65.8% compared to previous year. The ratio of Sold Price vs. Original List Price was 97%, a decrease of 1% compared to previous year.
Versus last year, the total number of properties available this month was higher by 39 units of 28.7%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory was the same as the previous month.
There was an increase of 45.8% in the pended properties in April, with 86 properties versus 59 last month. This month’s pended property sales were 18.1% lower than at this time last year.
April property sales were 56, down 37.8% from 90 in April of 2022 and 1.8% lower than the 57 sales last month.
Average Sold Price per Square Foot
The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The April 2023 Average Sold Price per Square Footage of $298 was up 11.6% from $267 last month and down 2.9% from $307 in April of last year.
Average Days on Market
The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for April 2023 was 63, down 1.6% from 64 days last month and up 65.8% from 38 days in April of last year.
The Sold/Original List Price Ratio
The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 97% was up 4.3% % from last month and down from 1% % in April of last year.
*Based on 6 month trend – Upward/Downward/Neutral
** Based on 6 month trend – Rising/Falling/Remains Steady
Average For Sale, Sold, & Median Sold
The Average For Sale Price
The Average For Sale Price in April was $744,000, up 5.7% from $704,000 in April of 2022 and up 0.3% from $742,000 last month.
The Average Sold Price
The Average Sold Price in April was $506,000, down 9% from $556,000 in April of 2022 and down 2.1% from $517,000 last month.
The Median Sold Price
The Median Sold Price in April was $422,000, down 6.2% from $450,000 in April of 2022 and down 7.3% from $455,000 last month.
Months of Inventory
A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers.
- Buyer’s market: more than 6 months of inventory
- Seller’s market: less than 3 months of inventory
- Neutral market: 3 – 6 months of inventory
Inventory based on Pended Sales
The April 2023 Months of Inventory based on Pended Sales of 2 was increased by 54% compared to last year and down 33.7% compared to last month. April 2023 was Seller’s market
Inventory based on Closed Sales
The April 2023 Months of Inventory based on Closed Sales of 3.1 was increased by 105.9% compared to last year and the same compared to last month. April 2023 was Neutral market.
Absorption Rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed each month.
- Buyer’s market: 16.67% and below
- Seller’s market: 33.33% and above
- Neutral market: 16.67% – 33.33%
Absorption Rate on Pended Sales
The April 2023 Absorption Rate based on Pended Sales of 49.1was decreased by 36.4% compared to last year and up 45.7% compared to last month.
Absorption Rate on Closed Sales
The April 2023 Absorption Rate based on Closed Sales of 32 was decreased by 51.7% compared to last year and down 1.8% compared to last month.
Here is some quick advice for those looking to Buy a Home in The Columbia Gorge or Sell a Home in the Columbia Gorge. Come back next month for more actionable tips.
If you are looking to buy this spring, keep an eye on interest rates. If rates continue to decline as predicted, then be ready for housing prices to go up. That being said, the federal government is trying to avoid housing inflation like we saw in 2020, 2021, and parts of 2022. With some of the banking collapses we saw, investors are turning their attention to mortgage backed securities, which will aid in the downward pressure rates.
Just understand that the housing supply is still very low, and there are a surplus of buyers waiting for the right moment to offer a home. If that is you – become friends with your Mortgage Lender so you can keep an eye on your estimated monthly costs. Don’t focus on the price of the home, focus on the monthly payment you can afford.
If you are looking to sell this spring, keep an eye on inventory in your area and interest rates. Now that we’re in spring, more homes are going to come onto the market. This may or may not be your competition.
There are many sellers who also need to buy. Often times, that means selling your home first before buying a new place. This creates a contingency for the purchase of your new home. I say to watch out for this because of rates drop, buyers who are unencumbered by the sale of their home will not have a sale contingency. They will often be more competitive.
The solution is to watch the level of inventory in the market you want to purchase. If more homes are on the market in your desired area, you have a better chance at writing a contingent offer and making the move. The longer the home has been on the market, the easier this becomes.
Otherwise – interest rates likely do not concern you too much because you have ideally built up some equity into your current home which you will roll over into your next purchase.