When To Buy a Home In Portland: Guide By Sammamish Mortgage

When To Buy a Home In Portland: Guide By Sammamish Mortgage
Sammamish Mortgage
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Is now a good time to buy a home in Portland, Oregon?

With a growing population and a bustling real estate market, this is currently a hot topic among residents. Let’s look at some of the factors that would influence your decision to buy a home in Portland throughout 2021.

Home Price Trends

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 have risen steadily in recent years. According to the real estate information company Zillow, home prices have increased over the last 12 month period. Zillow forecasts that the Portland market will see another increase during the upcoming 12 month period as well.

According to Zillow, the median home value in Portland, Oregon sits at $544,136 in July 2021. That was an increase of 15.6% from a year earlier.

This period of increases was actually foreseen by Zillow’s analysts in the past. Zillow predicted that the market would heat up. In previous years, Portland’s market had shown rapid gains as well.

The market tends to be cyclical, and so current trends can be seen as an expected dip. The market will likely rebound in the near future.

From a market perspective, a case could be made for buying sooner rather than later. Zillow characterizes the Portland market as a “seller’s market” at the moment, but this won’t last forever. If you’re interested in buying a home in Portland, you should consider getting into the market before prices really start to take off.

The Real Estate Market Is Competitive, With Limited Inventory

Home buyers in Portland should also know that the local real estate market is still very competitive right now.

Housing inventory is particularly tight in the “starter home” price range.

According to Recent Data:

According to an analysis from Freddie Mac, Oregon has the biggest shortage of housing of any state in the country, and housing inventory is tight in the Portland metro area, too. At the same time, the population is steadily growing.

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.

Mortgage Rates Fall to an All-Time Low

Here’s another signal that now may be a good time to buy a home in Portland: Mortgage rates are currently at their lowest.

During the week of July 26, 2021, Freddie Mac reported that the average rate for a 30-year fixed mortgage loan fell to 2.78%. That’s close to an all-time low. At the same time last year, the average rate for a 30-year home loan was 3.01%. 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. Experts anticipate that rates will remain under the 3% mark throughout 2021, but only time will tell what will truly happen. Considering how low rates are right now, it may be a great time to buy a home in Portland.

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Portland Real Estate Prediction 2021: Increase in Home Prices

Here’s a Portland real estate market prediction for 2021 that’s almost sure to come true: Low housing inventory will continue to fuel competition between buyers, and the market will experience a modest increase in median home values.

The latest readings of the Portland, Oregon real estate market suggest that tight inventory will continue to be a factor through throughout the rest of 2021. We should expect to see an increase in median home values. Here are the latest predictions for the Portland real estate market through as of mid-2021.

Portland Market Continues to Be Competitive

In July 2021, the real estate research firm Zillow reported that the median sales price for homes in Portland is $544,136.

Home values across the metro area have climbed steadily over the last few years, largely due to an imbalance between real estate supply and demand.

The Portland area attracts residents from elsewhere in the country, but there aren’t enough homes to go around. This has caused home prices to steadily increase in recent years. New predictions suggest modest increases in the next 12 months, but this follows impressive gains in previous years. Zillow characterizes the Portland market as hot at the moment. The current market is competitive, so buyers should still expect a fair level of competition considering present levels of supply and demand.

As a result of these trends, home buyers should be well prepared, with their financing lined up ahead of time. It’s also important to be realistic with regard to your wish lists and expectations. Being flexible and open-minded goes a long way in a hot real estate market like Portland.

Homes Are Selling At A Fast Pace

Homes are currently selling at a fast pace within the Portland metro-area housing market. According to Redfin, Portland properties listed for sale in July 2021 spent a median of 6 days on the market before going under contract.

This statistic illustrates the high level of demand and limited inventory in the area.

Also according to Redfin “hot homes” in the Portland real estate market can sell particularly fast. Hot homes tend to go pending in about 4 days. When such homes do go pending, they tend to sell for above list price (around 2% higher, on average). This is more compelling evidence that the Portland market is still robust and will likely remain competitive well into the future.

Predictions for Portland Real Estate Market Through 2021

Housing analysts at Zillow recently offered a 12-month prediction for the Portland real estate market, extending into July of 2022.

The company predicted that the median home value in Portland would continue increasing over the next 12 months. House values increased by 15.6% over the previous 12 months, by their estimation. This prediction is consistent with general real estate trends, and suggests a rapid appreciation.

Disclaimer: This section includes projections and predictions for the Portland, Oregon real estate market through mid-2022. Such outlooks were provided by third parties not associated with our company. We have compiled them here as an educational service to our readers.

Buying a Home in Portland Now Versus Waiting Until 2022

A lot of home buyers in the Portland metro area are already looking ahead to later in 2021 and into 2022. And many of them have the same question: Does it make sense to buy a house in Portland right now, or would I be better off waiting until 2022?

Answering this kind of question requires equal parts soul-searching and market research. To help you with the market aspects, we’ve compiled some recent stats and trends. The following information will help you weigh the pros and cons of buying a home in Portland now, versus waiting until 2022.

Population Growth and Tight Inventory Increasing Housing Demand

The Portland metro area has been drawing in new people from all over the nation, especially those in higher-priced centers like California. People are looking for more affordable housing while still taking advantage of the perks that come with big-city living. And Portland is a great option for many.

According to the US Census Bureau, the population of Portland has grown by almost 12% from 2010 to 2018, which is almost double the 6% national growth rate over the same time period.

That, coupled with the ongoing squeeze in housing inventory, has driven up demand, which will undoubtedly increase housing prices in Portland over the next few months and into 2022.

Unfortunately, no one can predict future home-price trends with complete accuracy. But with the current supply and demand situation in the Portland real estate market, it seems likely that house values will continue to increase through 2021, and the market will remain relatively competitive. Whether you buy now or late will depend on your needs.

An Increase Ahead ?

Housing analysts and economists are predicting an increase for the Portland real estate market over the next year or so. The general consensus is that home values in the area will start to pick up.

There is still a high level of demand and competition within the Portland real estate market.

Home prices in the area have risen much faster than wages and incomes, and this kind of trend is generally unsustainable over the long term. The real estate market “self corrected” in the form of a small decline in prices over the past year, but that trend seems to be reversing.

Housing Inventory Remains Tight

There is still something of an inventory shortage in the area, and this will affect those buying a home in Portland in 2021.

The city is attracting new residents from all over the country, particularly those who are fleeing the exorbitant home prices in California. The resulting population growth has boosted demand for housing, putting upward pressure on house values.

Housing Inventory Remains Tight

There is still something of an inventory shortage in the area, and this will affect those buying a home in Portland in 2021.

The city is attracting new residents from all over the country, particularly those who are fleeing the exorbitant home prices in California. The resulting population growth has boosted demand for housing, putting upward pressure on house values.

Will Mortgage Rates Rise in 2021?

Mortgage rates are another big consideration for those who are considering buying a home in Portland in 2021. The question on everyone’s mind is, will mortgage rates rise between now and 2022?

Interest rates are even harder to predict than home prices. But that doesn’t stop people from trying.

Each month, the Mortgage Bankers Association (MBA) publishes a finance forecast that includes a variety of economic indicators. According to their latest forecast, the industry group expects the average rate for a 30-year mortgage loan to remain low over the coming months. They predicted that rates will average around 3% throughout 2021. As of July 2021, 30-year mortgage rates were hovering around 2.78%.

Here’s the bottom line to all of this: Nobody can predict future mortgage rates or home prices with total accuracy. But current market conditions suggest that housing costs in Portland, Oregon will likely remain low over the coming months. So a case could be made for buying a home now versus 2022 — at least where costs are concerned. Home buying costs in Oregon are expected to continue rising through 2021 if home prices increase. So waiting until next year might cost you.

Outlook

Is Now the Best Time to Buy?

Anyone who is “on the fence” about buying a home in Oregon should pay close attention to these real estate trends. Obviously, you should never buy a house until you’re fully ready to do so. Homeownership should align with your long-term plans, your lifestyle, and your financial goals.

With that being said, a strong case could be made for buying sooner rather than later, due to the competitive market and the high rental costs we are seeing in Oregon. Ultimately your decision will be based on your specific needs.

A Word About Mortgage Rates

Most home buyers in Oregon use mortgage loans to help finance their purchases.

So mortgage interest rates are another important consideration. They’re a component of your home buying costs.

Rates are incredibly low right now, so buying today can help you lock in a low rate, which can help save you tens of thousands of dollars – or more – over the life of your loan. If you wait too long and rates rise, it will cost you.

The bottom line to all of this is that housing costs across the state will likely continue to rise for the foreseeable future.

Slightly declining, but they are considerably higher than where they were several years ago. And housing costs for renters may be high enough to increase demand in the buying market in the future.

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Ready to Apply For a Home loan?

Do you have questions about home loans or refinancing? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire Colorado state, including Boulder, and its many amazing neighborhoods like Whittier, Mapleton Hill, Foothills, and Longmont. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.