RMLS’s Market Action confirms what we already know. The market is tight. Inventory is down to 1.8 months. The report continues:
To calculate sale price appreciation, prices for the twelve months that ended with March 2005 are compared to prices for the twelve months ending in March 2004. Using those time periods, the average
sale price appreciated 10.7% ($251,400 v. $227,200). Using the same date range to compare median
sale price we see a 10.8% appreciation rate ($209,900 v. $189,500).
These numbers are great for this market but we probably need to consider the high quanity of new construction that has been added to the existing condo pool. These new constructions are continually pushing the envelope in price per square foot. The obvious side effect is that it pulls the existing units up wit it.
Market Action is published towards the end of each month for the previous month by RMLS of Portland.