Will 2018 be a good time to buy a house in Oregon? With only a couple of months left in the year, that’s what a lot of Oregonians are wondering right now. Here’s a current look at home prices, mortgage rates, the local economy, and other factors that can determine if it’s a good time to buy in Oregon.
Will 2018 Be a Good Time to Buy in Oregon?
When it comes to making a home-buying decision, there are both personal and market-related factors to consider. On the personal side, you have to consider your budget, your long-term plans, and your overall lifestyle.
On the market side, there are a variety of important considerations, such as home price trends, borrowing costs, economic factors and more. This article looks at the market-specific aspects to help answer the question: Will 2018 be a good time to buy a house in Oregon?
Home Prices Continue to Rise across the State
You probably already know that home prices have risen over the last couple of years. That’s been the big real estate news story for quite some time now. In fact, house values in Oregon have been outpacing just about every other state in the country (except for Washington) over the last couple of years.
According to Zillow, the median home value for the state of Oregon rose to $314,400 in October 2017. That was an increase of around 9.5% from the same month a year earlier.
The company’s economists expect additional price gains into 2018, though they’re predicting a bit of a slowdown. Their latest prediction (to date) is that the median home value for Oregon will rise by 3.7% between October 2017 and October 2018.
Mortgage Rates Hovering at Low Levels (for Now)
The average rate for a 30-year mortgage loan has been hovering below 4% since July 2017. According to the latest industry survey conducted by Freddie Mac, 30-year loan rates were averaging 3.88% during the week of October 19, 2017.
But the company’s long-range forecast suggests that mortgage rates could start creeping upward over the coming months. They anticipate that 30-year rates will end up averaging 4.0% for 2017, and will climb to an average of 4.4% in 2018. Other industry watchers have made similar predictions.
So from a market perspective, now could be a great time to buy a house in Oregon. In fact, with low mortgage rates and the threat of rising home prices, current conditions seem ideal for some Oregon residents. Postponing a purchase could mean that you’ll end up paying more for house.
Oregon Job Market and Economy Remain Strong
Job markets and housing markets go hand-in-hand. When local economies are strong and jobs are plentiful, it brings more home buyers into the market. This boosts housing demand and home values alike. That’s the current situation for the state of Oregon, which has long enjoyed a stable economy.
According to a September 2017 report from the Oregon Office of Economic Analysis: “While job growth here in Oregon has slowed since the full-throttle rates seen in 2014 and 2015, Oregon is still outpacing the nation overall.”
The report went on to state that IHS Economics projects the state’s economy to fare well, relative to the rest of the country, over the coming years.
Housing Inventory Will Likely Remain Tight in 2018
In many respects, 2018 could be a good time to buy a house in Oregon. But home buyers might find that they have limited options, when it comes to choosing a property. The housing inventory situation across the state can be summed up with a single word – tight.
This is partly why we have seen such a significant increase in home prices over the last couple of years. Strong demand and limited inventory have put upward pressure on house values across the state.
According to Josh Lehner, an economist at the Oregon Office of Economic Analysis, housing inventory is tight across the entire state. “Salem looks the same; Bend looks the same. We just haven’t built enough housing,” he said.
Based on all of these reports, one could argue that 2018 will be a good time to buy a house in Oregon. But buyers might want to consider making their purchases sooner rather than later. Mortgage rates are low and the economy is strong, but housing costs are expected to increase over the coming months.