Summary: Are you thinking about buying a home in Portland, Oregon during the second half of 2020? Or maybe early in 2021? This article will help fill buyers in on approaching the house huntin process strategically to maximize the chances of a successful transaction.
If buying a home in Portland, OR is on your agenda this year, then there are a few things you should know about the current housing market. Here are three things every home buyer should know when house hunting in Portland.
Three Things to Know When House Hunting in Portland
Home price appreciation has slowed down considerably over the last couple of years, and inventory has improved. But there’s still a shortage of inventory relative to the numbers of active buyers in the market, which can make the house hunting experience in Portland, Oregon pretty competitive.
1. Home price appreciation has slowed down over the last couple of years.
Two or three years ago, the Portland housing market was frequently in the news due to a rapid rise in home prices. It was one of the fastest appreciating real estate markets in the country. Back then, the median home value in the city rose by double digits in a single year.
But things have cooled down quite a bit since then.
According to Zillow, the median home value in Portland reached $425,000 during the summer of 2018. Since then, price appreciation has slowed somewhat, but prices still increased. As of this writing (May 2020), the median home price in Portland is $467,600 according to Zillow’s economic team.
2. The inventory situation is still tight.
There is more housing inventory on the market today than there was a couple of years ago. But the supply situation is still tight in the Portland area, and that’s something you should know when house hunting in 2020.
As of May 2020, the Portland housing market had about a 2-month supply of homes for sale. That’s a theoretical measurement used mainly for tracking purposes. What house hunters need to know is that the inventory level within Portland’s housing market is still well below what is considered normal.
Here’s the take-home message for home buyers: When house hunting in Portland, it’s important to start early and be patient. It might take a while to find the right house.
3. Homes are selling relatively quickly.
Despite the slowdown in home price appreciation mentioned above, Portland, Oregon is still a very active real estate market.
In May, homes listed for sale spent a median of 14 days on the market before going under contract. This indicates that there is still strong demand from home buyers in the Portland area.
While the current housing market isn’t necessarily hot, it is still competitive due to the relative shortage of inventory. So home buyers will want to be ready to move quickly with a strong offer, when the right house comes along.
So those are three of the most important things you should know when house hunting in Portland in 2020. The real estate market has settled down a bit, with slower price growth than what we saw a couple of years ago. But there is still a lot of competition, mainly due to a lack of for-sale inventory.
Have Questions About Mortgages in Portland?
If you’re ready to apply for a mortgage in Portland, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as Oregon, Colorado, and Idaho. We have been offering mortgage products to borrowers since 1992. Please contact us if you have mortgage-related questions.