New Construction Sales Trending Higher in Total Sales Volume in Portland Real Estate Market

We’ve been seeing an increase in the percent of new construction sales as they pertain to total closed volume in the Portland market, however this appears to be more of a situation where new construction sales are remaining flat and resale (existing home sales) are declining, as you can see from the charts below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As you can see, closed sales (first graph) have dropped and the new construction sales as a percent of total sales (second graph) is increasing, yet the total number of new construction sales (last graph) is remaining roughly the same. The only explanation? Existing home sale closings are slipping in February.

Now, this should be taken with a grain of salt however, as I’ve mention many times previously closed sales numbers often lag a few days behind as there are many Realtors that do not change the status of one of their listings to “closed” and specify the date it actually closed until days (sometimes a week or more) after the home actually closed. So it will reflect closed on the correct date, but often not until a few days later.

To counter-act this I typically look a few days back every day for closed sales to pick up the ones that lagged behind and this data on recent closed sales is within that lag time.

I’m betting this is not just an anomaly strictly related to lagging closed sales numbers though as it’s fairly normal to see “normal” sellers (existing home sales) slump this time of year; yet new construction continues on (sellers pull their homes during the cold winter months, builders do not).

Translation to existing home sellers in this market right now: Builders are selling homes right now, you could be selling yours now too.

In case you’re wondering about Bank Owned and Short Sales as they pertain to this data, closed REO’s are remaining flat and closed short sales have only decreased slightly in the same time frame (and well within the lag time frame).

Scott McDonald, Portland Realtor

Everything. Portland. Real Estate. Blog.

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