If you’re considering buying a home in Portland, Oregon some time soon, then 2023 may be your year. With low rates, 2023 could be a great time to buy.
The real estate market in Portland, Oregon has changed a lot over the past couple of years. Home prices have decreased over the past year.
Buyers who get in on the market sooner rather than later can take advantage of lower home prices before thye could increase in the upcoming months of 2023.
Why 2023 Could Be a Good Time to Buy in Portland
Housing inventory continues to be tight in Portland. Right now, there is roughly a 2.5-month supply of homes in the city, which is much less than the 5- or 6-month supply that typically characterizes a balanced market. That said, experts believe that inventory may loosen somewhat in Portland in 2023, which will give buyers more options.
Further, home-price growth is expected to continue over the course of the year, so buyers should not wait to buy. Instead, they may want to consider getting into the market sooner rather than later to ride the wave of price appreciation.
These and other factors could make 2023 a great year to buy in Portland. Here’s what you should know about these trends.
1. Home buyers may have slightly more to choose from.
Back in late 2015 and early 2016, Portland’s real estate market had about a 1-month supply of homes for sale. By June 2018, inventory had increased to about a 2.2-month supply. And by January 2020, that number increased slightly to a 2.5-month supply.
While this is a positive trend, the housing inventory situation has not improved since. In fact, competition is still quite strong among buyers. RedFin describes the housing market in Portland as “somewhat competitive,” with the average home selling for 2% above listing price and going pending in about 13 days. Hot properties are selling for 5% above listing price and go pending in as little as 5 days.
But new home construction is expected to increase, which should help alleviate the inventory situation to some degree, though not enough to bring the market to a balanced level. According to economists, new home construction is up and forecasted to increase 10% to 15% in coming years.
To be clear, housing inventory in Portland is still well below what’s considered to be a “balanced” real estate market, which has 5- or 6-months supply of housing to meet demand. But the fact that supply may finally start to grow at some point is a positive sign for buyers. It should give them more options, while easing competition a bit. It’s another reason why 2023 could be a good year to buy a home in Portland.
2. Home-price appreciation may prompt buyers to get in the market sooner rather than later.
In May 2023, Zillow reported that the median home value in Portland was $543,308. That is -5.7% lower than what the price was last May. Looking forward, the company predicts that the median price will continue increasing over the next 12 months, though perhaps not as quickly.
3. Mortgage rates are still extremely low.
The historically low mortgage rates we are seeing these days is yet another reason why homebuyers may want to get into the housing market in 2023.
As of the second week of May 2023, the 30-year fixed-rate mortgage rate is 5.570%.
With Prices Rising, Buyers Shouldn’t Wait Too Long
To recap: housing inventory is still tight, but mortgage rates are decreasing, making borrowing costs much lower. This is reason enough to make 2023 a good year to buy a house or condo in Portland, Oregon.
Home prices are on the rise in Portland, and while they may be more expensive than they were last year, but buyers should not let that scare them from getting into the market. Instead, it would be wise to get in sooner rather than later to pay lower prices than they will next year. And at the same time, they can build home equity even faster.
Want to Apply For a Mortgage in Portland?
Are you thinking about buying a home in Portland in 2023? If so, now may be a great time to take the plunge! When you’re ready, Sammamish Mortgage can help you get the mortgage you need to make that big purchase. We are a family-owned mortgage firm that serves all of Washington, Oregon, Idaho, and Colorado and have been offering many mortgage programs to borrowers since 1992. Get in touch with Sammamish Mortgage today to apply for a mortgage or simply to have your questions answered!