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April 15, 2022

Bidding wars, tight inventory defined Portland's home sales market in March

red house Courtesy / Benchmark Real Estate Portland’s hot residential real estate market was recently illustrated when Benchmark Real Estate listed 86 Ballpark Drive in Portland for $649,000, had over a dozen showings and multiple offers on day one, wrapping up with a $780,000 cash offer.
By Laurie Schreiber

March statistics show Portland's residential real estate market remains tight, with inventory plummeting and prices rising slightly over levels a year ago, according to the latest report from Benchmark Real Estate.

For the first quarter of 2022, compared to Q1 2021, there was a similar drop in inventory with a slight decrease in overall prices from last year.

"While a cursory look at the overall stats might make it seem like the market is simply down, digging into the data and breaking it out into the different market segments paints a more accurate picture,” Benchmark Real Estate owner Tom Landry said in a news release.

He noted that a few high or low sales can drastically skew the numbers.

Landry said inventory is at an all-time low. Overall March sales were down 49% over March 2021. 

“In March, we usually see more listings hit the market than we did,” he said. And while more listings are coming in April, they're fewer than in past years. 

Still, Landry said an influx in listings could be on the horizon. 

“Outside pressures like interest rate hikes, a looming recession and talk of a real estate bubble could shift the near-term market up or down,” he said.

Many would-be sellers appear to be thinking about selling early this year, renting while inventory is low, and then jumping in if higher rates dampen demand and sales prices drop, he said.

Single-families

In an analysis of Portland’s market broken out by segment for March and Q1, Landry said the numbers in the single-family segment reflect limited inventory and strong buyer demand. 

“March showed a healthy increase in median sales price of 5% over last year and an 18% increase in price per square foot, showing that buyers are willing to pay more than they did in 2021,” he said. “But, despite the robust seller’s market and an early start to spring, many are reluctant to sell. Why? They likely have lower interest rates on their current home than they’d get on their next home, and they see how tight and competitive the market is for buyers.”

Based on statistics prepared by Benchmark Real Estate using data from Maine Listings, a comparison of March 2021 versus March 2022 showed that the median sale price for single-families rose 5%, from $452,000 to $476,500, while listings decreased 7%, from 54 to 50. Median days on market decreased 17%, from six to five.

tan house
Courtesy / Benchmark Real Estate
Benchmark Real Estate this week listed 24 Carlyle Road in Portland for $499,000 and within 36 hours had 44 showings and received and signed a cash offer — with no inspection or contingencies — for nearly $650,000.

For the rolling quarter from January through March, the median sale price dropped 3% and median days on market fell 17%, although the number of listings rose by 2%.

Condominiums

Drawing solid conclusions about the condo segment is difficult, he said.

“Like single families, sales volume and listings are down over 2021,” he said. “However, a March increase in median sale price of 6% and 9% price per square foot increase over the quarter are clear indicators that the condo sector is healthy and improving over 2021.”

A comparison of March 2021 to March 2022 showed the median sale price rose 6%, from $512,500 to $540,800, while listings decreased 21%, from 34 to 27, and median days on market shrank a whopping 89%, from 44 to five.

For the rolling quarter, the median sale price dropped 3%, listings dropped 35% an median days on market was down 80%.

Multifamily market

Portland’s multifamily market continues to lag 2021 results. Number of sales were down in March and across the quarter over this time last year. 

“While the quarterly median sales prices and price per unit are up, listings are lingering 125% longer on the market than last year,” he said. “These numbers show the continued impact of rent control with smaller units selling for more and more quickly than buildings with five or more units.”

Unlike singles and condos, the median sale price shrank 5%, from $667,500 to $633,000, and the number of listings rose 57%, from 14 to 22, when comparing March 2021 with March 2022. But median days on market continued its downward trend, shrinking 25% in this segment, from eight days to six.

For the rolling quarter, the median sale price grew 9% while the median days on market increased 125%. The number of listings shrank 10%.

Overall comparison

A comparison of March 2022 versus March 2021 showed the median sale price — as an overall total across single-family, multifamily, condo and land — rose 1%, from $514,500 to $519,000, while the number of sales dropped 49%, from 126 to 64 and the number of listings sank 4%, from 104 to 100.

The strength of demand was further illustrated by the number of days on market, which dropped 71%, from 17 to five.

A comparison of rolling quarters, from January through March, showed shrinkage among all metrics.

Highs and lows

The highest-priced March 2022 sales in Portland were:

  • Single-family — 0 House Island for $5.35 million
  • Multifamily — 231-227 Western Prom for $4.85 million
  • Condo — 383 Commercial Street, Unit 301 for $3.15 million.

The lowest-priced March 2022 sales were:

  • Single-family — 492 Capisic St. for $230,000
  • Multifamily — 9 C St. for $450,000
  • Condo — 90 Glenridge Drive, Unit 90, for $275,000.

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