Are you thinking about buying a home in Oregon? On the fence about whether you should buy in 2017 or 2018? Here’s something to consider. Home buying costs in Oregon are expected to continue rising through 2017 and into 2018, according to recent forecasts. So waiting until next year might cost you.
Oregon Home Buying Costs Rising Into 2018?
Home prices in Oregon have risen sharply over the last couple of years. According to the real estate information company Zillow, the state’s median house value increased by nearly 12% from April 2016 to April 2017. That’s well above the national average of 7.3% for the same 12-month period.
And while it appears that house price appreciation might be slowing, analysts expect Oregon home buying costs to continue rising through 2017 and into 2018 — to some degree. This means buyers who postpone their purchases until later this year or next will likely encounter higher costs.
One notable forecast: the housing analysts at Zillow recently predicted that house values in Oregon would rise somewhere between 2% and 3% over the next 12 months. Issued in May, this long-range forecast extends into the spring of 2018.
Related: Average closing costs for buyers
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 rising home buying costs we are seeing in Oregon.
Mortgage Rates Expected to Rise Gradually
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.
At the end of May 2017, when this article was published, the average rate for a 30-year fixed mortgage loan had dropped to 3.95%. That’s based on Freddie Mac’s weekly survey. At the start of this year, that average was at 4.20%. So rates actually declined during the first five months of 2017.
But some experts anticipate a gradual rise in mortgage rates through the end of the year. The Mortgage Bankers Association, for example, recently predicted that 30-year loan rates would average 4.6% by the fourth quarter of 2017. This is another trend to watch, as it relates to Oregon home buying costs in 2017 and 2018.
The bottom line to all of this is that housing costs across the state will likely continue to rise for the foreseeable future. Home prices appear to be rising more slowly than they did over the last couple of years — but they’re still trending north. And we could see higher mortgage rates over the coming months as well.