End of Year Report: Metro New Construction Median Sale Price Per Square Foot in Portland, OR (2023)

End of Year Report: Metro New Construction Median Sale Price Per Square Foot in Portland, OR (2023)

Title: Unveiling Trends and Predictions: Portland’s New Construction Real Estate Market

Executive Summary:

The year 2023 has witnessed dynamic shifts in Portland’s new construction real estate market. Analyzing the monthly median sale price per square foot data provided by Zillow from January to November, we observed fluctuating trends indicative of market volatility. This report aims to dissect the data, deduce trends, highlight highs and lows, and provide insights into whether 2023 was favorable for buying or selling new homes in Portland. Additionally, predictions for the market in 2024 will be explored based on observed patterns.

Analysis and Insights:

Monthly Median Sale Price Per Square Foot:

Below is the rounded-off data for the monthly median sale price per square foot in US$ for newly built houses in Portland, OR from January to November 2023:

Trends and Relationships:

• Overall Increasing Trend: The data reveals an overall increasing trend in median sale price per square foot from January to March, followed by a slight decline in April and May. Subsequently, there is another upward trend until October, with a noticeable decrease in November.
• Highs and Lows: The highest median sale price per square foot was observed in October (US$316.25), while the lowest was recorded in January (US$289.36).

Monthly Percentage Changes:

Calculating the monthly percentage changes:

Annual and Quarterly Averages:

• Annual Average: The annual average median sale price per square foot for 2023 is US$303.85.
• Quarterly Averages:
  • Q1: US$296.39
  • Q2: US$301.15
  • Q3: US$306.19
  • Q4: US$305.40

Closing and Ending Figures:

• The closing figure for November 2023 is US$300.03.
• The ending figure for December 2023 (not included in the provided data) is projected to maintain a similar trend, considering the decreasing percentage change observed in November.

Conclusion and Recommendations:

Based on the analyzed data, 2023 presented both opportunities and challenges in Portland’s new construction real estate market. The increasing trend in median sale price per square foot signifies growing demand and market activity, particularly in the second and third quarters. However, the fluctuating nature of the market, especially evident in the significant percentage changes month-to-month, indicates volatility that buyers and sellers need to navigate carefully.

For buyers, the market might have been more favorable earlier in the year, with lower prices observed in January and February. Meanwhile, sellers might have found the market more lucrative towards the end of the year, especially during the peak in October.

Looking ahead to 2024, it’s crucial for investors, buyers, and sellers to monitor market indicators closely. Factors such as economic stability, interest rates, and housing supply will continue to influence market dynamics. While predictions can never be entirely certain, maintaining flexibility and adaptability in response to market fluctuations will be key for success in the upcoming year.

In conclusion, 2023 has been a year of ups and downs in Portland’s new construction real estate market, presenting both challenges and opportunities for investors.