According to the analysts at Realtor.com®, Portland, Oregon will be one of the ten hottest housing markets in the country in 2017.
In November of 2016, Realtor.com published their 2017 National Housing Forecast. Among other things, the report predicted home prices and sales trends for the 100 largest metropolitan areas in the United States.
By their estimation, the Portland real estate market will be one of the strongest in 2017. They expect both home sales and prices to rise by more than 5% next year.
Portland One of the Hottest Housing Markets in 2017
In the 2017 National Housing Forecast, Portland was forecast to be among the top 10 U.S. metros for home sales and price growth in 2017.
Of course, this should come as no surprise to anyone who has been following the Portland housing market in the news lately. The city generated a lot of headlines during 2016, mostly due to stiff competition and rapidly rising home values. It’s only natural to see it on a list like this one.
According to the real estate data company Zillow, home prices in the Portland housing market rose by around 15% during 2016. When this article was published, at the end of December 2016, the median home price in the city had risen to $405,700.
Sellers Are Seeing Big Profits
A recent report from RealtyTrac showed that homeowners in Portland have been selling their homes for well above the original purchase price, on average. In fact, the city led the nation in terms of purchase-to-sales-price increase.
According to the report:
“Among 118 metropolitan statistical areas with at least 1,000 single family and condo sales in the third quarter, those with the highest average home price gain since purchase for home sellers in Q3 2016 were San Jose (68 percent); San Francisco (67 percent); Portland (51 percent); Seattle (51 percent); and Los Angeles (49 percent).”
RealtyTrac also reported that Portland home prices reached an all-time peak during the third quarter of 2016. This will be a recurring event over the coming months, since home values are still rising across the metro area. The bottom line is that prices within the Portland real estate market are higher now than ever before.
Strong Job Market Brings Buyers into the Market
The hottest real estate markets of 2016 — and those that are predicted to keep sizzling in 2017 — have several things in common. Strong local economies and job markets are two of the common threads.
According to the U.S. Bureau of Labor Statistics, the unemployment rate in Portland, Oregon fell to 4.7% in October 2016. Current estimates put it below 4.5%. That’s a major improvement from the 11.4% unemployment rate seen during the recession.
Portland has a strong tech industry, in particular, and this attracts young and upwardly mobile workers from elsewhere in the state and country. According to a recent article in Forbes, Portland is one of the nation’s top-10 tech employment centers. It’s up there with the likes of San Jose, Seattle, San Francisco and Denver.
This is partly why the Portland housing market is predicted to be one of the hottest in the nation in 2017. Jobs fuel population growth and enable people to purchase homes.
Prices Slowing in 2017, Despite “Hotness” Factor
The Portland real estate market will probably be just as lively in 2017 as it was in 2016, due to strong demand and limited inventory. But economists are forecasting smaller price gains over the coming months. And this might be a good thing.
As we reported last week, several economists and housing analysts have predicted that home-price appreciation in Portland will slow down in 2017. From an economic standpoint, this is good news because it suggests a return to normalcy. Or at least a step toward normalcy.