Courtesy / Vitalius Real Estate Group
Elise Loschiavo
Updated: March 24, 2022
Portland condo market continues upward trajectory, new report shows
COURTESY / NEWHEIGHT GROUP
A rendering shows Verdante at Lincoln Park as seen from the intersection of Hampshire and Federal streets in Portland. The NewHeight Group project is part of a new of new projects responding to market demand.
By Staff
Portland condominiums continue to trend upward in value, while the median number of days they're staying on the market remain at an all-time low.
Those are some of the findings of a report released Tuesday from Portland-based Vitalius Real Estate Group.
The report, by broker Elise Loschiavo, provides an overview of Portland’s 2021 condo market and a 2022 condo market forecast.
In 2020, Portland’s condo market saw the price per square foot of existing condos rise 13% with lower-than-average sales volume, according to the report. The market saw another 13% gain in 2021.
Sales volume in 2021 was considerably higher, primarily due to a few large developments contributing 168 new units to the market, both on- and off-peninsula.
“It’s now very clear that Portland condos continue to be in great demand,” she wrote. “We’ve easily absorbed these new units into the market while existing condo values have steadily increased.”
Recently completed condo developments include Hammond House, 16 units in East Bayside; Hobson’s Landing, 91 units in Phase 1 at 383 Commercial St.; Verdante at Lincoln Park, 29 units at 99 Federal St. on the East End; and Stevens Square at Baxter Woods, 21 units in Phase 1 at Deering Center.
Prices across the four developments ranged from $360,000 to $3.675,000.
Other takeaways for 2021:
• Portland condominiums continued to be in great demand.
“We've easily absorbed nearly 200 brand new units into the market with little effect on existing condo values,” wrote Loschiavo.
• Existing condos saw a 13% bump in price per square foot.
• The median number of days on market were at an all-time low.
• Portland's 2021 property tax revaluation didn't affect condo owners — most saw little to no difference in their tax bills.
“The total citywide assessed value increased by 77% over the previous assessment, but was accompanied by a 44% reduction in the mill rate. “Condo owners on average saw fairly flat tax bills, with many condo owners reporting a reduction their property taxes,” she wrote.
2022 forecast
Going into early spring, Loschiavo said, inventory is still extremely low she expects condo prices will continue to bid well beyond their list prices.
“Buyers are racing to lock properties down ASAP amid increasing interest rates, a shaky stock market and rising inflation,” she said.
She noted that another 200 condos are under development, which is expected to offer a significant boost to available inventory.
“We don't expect this will impact the price of existing condos,” she added.
However, she continued, future new condo development announcements within Portland city limits “will be scarce as developers struggle to reconcile sky-high land and materials costs with an increasingly difficult path to Portland development approvals.”
She added, “Another yearly 10% to 15% gain in condo pricing would not be out of the question.”
To view the full report, click here.
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