PORTLAND, Ore. (KOIN) – Portland, along with other major cities around the country, saw a significant decrease in home prices from where they peaked in 2022 to the end of the year.
The Mortgage Monitor December 2022 report from Black Knight, a data and analytics company, said 14 of the 50 largest markets in the U.S. saw home prices decline by 6% or more from their 2022 peaks to December 2022, on a seasonally adjusted basis.
Some cities saw declines of more than 10%.
Portland’s price slide wasn’t that steep, but it is among those 14 markets.
According to Black Knight’s data, Portland’s home price index fell 9.2% from its 2022 peak to December, or a 6.1% decrease when it’s seasonally adjusted.
The Regional Multiple Listing Service’s Market Action Report for January 2023 for the Portland Metro area showed home prices are continuing to drop. In January, the median home sale price dropped to $489,500, the first time the median sale price has fallen below $500,000 since March 2021.
Price declines seem to be the trend among all large markets in the Western U.S. Every major market in the West saw prices pull back by 6% or more through December on a seasonally adjusted basis, Black Knight reported.
In the Midwest and Eastern U.S., prices have plateaued for the most part and some areas are starting to see declines.
Black Knight says only four of the top 50 markets have continued to see prices rise on a seasonally adjusted basis: Kansas City, Indianapolis, Virginia Beach and Louisville.
Although home prices are sliding, other factors like higher interest rates are causing listed homes to remain on the market for longer. According to Zillow’s January 2023 Housing Market Report, the median time homes in the U.S. spent on the market in January was 31 days, slower than it’s been the last two years but faster than before the pandemic.
In the Portland metro area, the total market time increased in January to 65 days, according to the RMLS report.
Portland’s median home sale value remains substantially higher than the national home price, which Zillow said was $329,542.
The real estate website said falling mortgage rates in the new year gave buyers new incentive to return to the market, but sellers have still been hesitant to list their properties.
Zillow said the drop in sellers came after buyers were scared away from making purchases in the summer of 2022 when home prices peaked and mortgage rates were higher than they’d been in years.
It’s still unclear whether sellers will return in 2023, Zillow said. In the first two weeks of February, mortgage rates climbed again, proving that a downward trajectory for rates can’t be counted upon this year.