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If you’re considering buying a home in Portland, Oregon some time soon, then 2021 may be your year. With low rates, 2021 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 slowed a couple of years ago, but they have been on the increase over the past year. And in 2021, prices are expected to rise even more.
Buyers who get in on the market sooner rather than later can take advantage of rapid home appreciation in their properties by taking advantage of the increase in home prices in Portland over the coming months.
That’s just one reason why 2021 could be a good time to buy a home in Portland. Early 2021, in particular, could be a great time to buy.
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 2021, which will give buyers more options.
Further, home-price growth is expected to ramp up 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 2021 a great year to buy in Portland. Here’s what you should know about these trends.
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 1% above listing price and going pending in about 12 days. Hot properties are selling for 4% above listing price and go pending in as little as 4 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 2021 could be a good year to buy a home in Portland.
In January 2021, Zillow reported that the median home value in Portland was $497,589. That is 8.5% higher than what the price was last January. Looking forward, the company predicts that the median price will rise by around 10.4% over the next 12 months (ending in January 2022).
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 2021.
As of the second week of January 2021, the 30-year fixed-rate mortgage rate is 2.65%. That’s a historic low and can make borrowing much more affordable, despite the rising home prices in Portland.
To recap: housing inventory is still tight, but mortgage rates are very low, making borrowing costs much lower. This is reason enough to make 2021 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.
Are you thinking about buying a home in Portland in 2021? 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!
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