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Is now a good time to buy a home in Portland, Oregon? It’s a question that many homebuyer hopefuls ask themselves, and for good reason. In this article, we’ll help you determine if 2021 is your year to jump into the housing market in Portland.
With a growing population and a bustling real estate market, the question about whether or not to buy a home in Portland this year is currently a hot topic among residents. So let’s look at some of the factors that will influence your decision to buy a home in Portland in 2021.
In many ways, now is a good time to buy a home in Portland, Oregon. This is true whether you’re a first-time or repeat buyer. But there are some things you need to know about the local real estate market before moving forward.
The first thing home buyers need to realize is that house prices in Portland are expected to rise over the next few months, as they already have been over the past year.
According to the real estate information company Zillow, the median home price in Portland, Oregon increased by 10.6% over the past 12 months. And the way things are going, home prices are expected to stay along a somewhat similar pace throughout the remainder of the year, though the ongoing health risis makes it difficult to predict with accuracy how much home prices will rise.
Related: The cost of buying in Portland
So, is it a good time to buy that house in Portland? From a market perspective, a case could be made for buying sooner rather than later. If Portland home prices do continue to rise, as predicted, those who delay their purchases until later in 2021 could encounter higher housing costs.
Home buyers in Portland should also know that the local real estate market is very competitive right now. This is largely due to a lack of inventory. In fact, Oregon has some of the lowest housing inventory in the entire country. Housing inventory is particularly tight in the “starter home” price range.
Portland home buyers need to enter the market with a realistic expectation of what they can get for the money, and a willingness to move swiftly when the right property comes along.
It’s also important to have your financing squared away before you enter the real estate market – as much as possible anyway. Cash buyers should have the money in the bank with statements to prove it. Portland home buyers who use mortgage loans (which is most buyers) would be wise to get pre-approved for a loan before house hunting. Expect the sellers to ask about your financing.
Here’s another signal that now may be a good time to buy a home in Portland. Mortgage rates recently sank to their lowest level of all time.
During the first week of April 2021, Freddie Mac reported that the average rate for a 30-year fixed mortgage loan fell to 3.18%. At the same time last year, the rate was 3.33%. Rates dipped well below 3% over the last few months, but have slowly been inching upward since.
So this might be a great time to buy a house in Portland, particularly for those buyers who need to use mortgage financing.
Mortgage rates are at yearly lows right now, but there is no telling how long they will stay there.
Are you actively searching for a home in Portland and need a mortgage? We can help you prepare for the competitive Portland real estate market by pre-approving you for a home loan. Sammamish Mortgage has been offering many mortgage programs to borrowers across Washington, Oregon, Idaho, and Colorado since 1992, and we’d love to help you too. Please contact our staff to get started, or with any mortgage-related questions you have.
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