The average cost of buying a house in Oregon has increased steadily over the last couple of years, largely due to rising home values. Mortgage rates have remained fairly stable over the last few months, but analysts expect those to begin creeping upward through 2017 and into 2018.
Here’s an updated look at the average cost to buy a house in Oregon, as of summer and fall of 2017.
Average Cost of Buying a House in Oregon, Updated
According to the real estate information website Zillow, the median home value for the state of Oregon rose to $309,400 in July 2017. That was an increase of 11.4% from the same time a year earlier.
That’s an above-average gain. In fact, Oregon and Washington State have been cited as having the highest year-over-year home price gains of any state in the country. So the average cost of buying a house in Oregon is significantly higher today than it was a year ago. And it could rise further.
The economists and analysts at Zillow expect home prices in Oregon to continue rising into 2018, but at a slower pace than the last year. Their 12-month projection between now and July 2018 calls for a 3.6% increase in house values statewide.
Mortgage Rates Fairly Stable, but Predicted to Rise
Mortgage rates, on the other hand, are actually lower now than they were at the start of the year. During the first week of January 2017, the average rate for a 30-year fixed mortgage loan was around 4.20%. Last week, Freddie Mac reported that the average rate for a 30-year loan was 4.03%. So we have seen some relative stability in terms of mortgage rates.
With that being said, economists at the Mortgage Bankers Association expect rates to rise gradually over the coming months. Their latest finance forecast predicted that the average rate for a 30-year fixed home loan would reach 4.4% by the fourth quarter of this year, and would approach 5% by the middle of 2018. This in turn would cause an increase in the average cost of buying a home in Oregon, at least for those buyers who use mortgage loans to finance their purchases.
Because the buyer’s closing costs are probably related to the sale price, they too could rise between now and next year. On average, home buyers in Oregon pay around 2% to 4% of the sale price in the form of closing costs. These are the various fees and charges that can accumulate during a typical real estate transaction. They include mortgage origination fees, credit reporting fees, government recording fees and more. You can learn more about closing costs here.
Average Mortgage Payment as of Summer 2017
We can get a sense of the average monthly mortgage payment in Oregon by using the current median home price mentioned earlier, along with average mortgage rates.
Using the statewide median home value of $309,400, and the average mortgage rate at the time of publication (4.03%), we end up with a monthly mortgage payment of around $1,481.
For the sake of simplicity, this calculation leaves out property taxes and other variables. But it gives you some idea as to the average monthly mortgage payment in Oregon, as of summer 2017.
The bottom line to all of this is that the average cost of buying a home in Oregon has increased over the last year, and is expected to continue along an upward trend in 2018 as well. Economists are predicting that home prices will rise more slowly over the next year than they have during the past couple of years. But they will almost certainly continue moving north to some degree, due to the current supply and demand situation across the state.
It makes a strong case for buying a home sooner rather than later. Those who postpone their purchases could encounter higher housing costs.
Disclaimer: This article uses data compiled from a variety of sources to give home buyers a sense of the average buying costs in Oregon. Figures were reported by third parties not associated with our company. They are deemed reliable but not guaranteed.