There are several important factors you should consider before you refinance your mortgage this year, including current rates and your financial situation.
Summary: Home prices in Portland, Oregon rose very quickly from 2012 to 2017, but slowed down quite a bit since then. That said, prices in the city are expected to rise at a slow and steady pace for 2020. This article will outline where prices are today and where they are expected to go throughout the the remainder of the year.
The most recent data on the real estate market in Portland shows that prices in the city are picking up slightly after a rather slow year. This is a big change after a few years of rapid price increase sin Portland. From 2012 to 2018, prices in Portland increased over 81%. Since 2018, price growth slowed down a great deal. But prices are on a slow but steady incline this year.
Portland Home Prices Rising Steadily in 2020
From mid-2018 to today (January 2020), prices in Portland have stagnated and plateaued. While there have been some ups and downs in home prices in the city, they have stayed relatively the same over the past couple of years.
Today, the average price for a home in Portland sits at $454,600. According to Zillow, prices have only increased 0.6% over the past year. However, they are expected to go up by 2.3% over the next 12 months.
Inventory Still Tight in Portland
The number of properties for sale in Portland has been tight for a while, and it is expected that such will be the case going forward in 2020. New listings are dwindling in Portland, according to the local listing service RMLS.
Inventory in Portland currently sits at a mere 2.4 months, which is very low when it comes to meeting demand. To illustrate how low this number is, a balanced market is considered anything with 5- or 6-months worth of inventory. As you can see, 2.4 months’ supply is nowhere near that level.
Market Needs ‘More Balance Between Supply and Demand’
So what’s going on here? Why are home prices in Portland rising in 2020, and possibly next year? It’s a supply and demand story, as always. There is a high level of housing demand in Portland right now. Population growth, economic stability, and low mortgage rates have created a “perfect storm” for home-buying activity.
Inventory, however, is falling short. There simply aren’t enough homes for sale in the Portland metro area to satisfy buyer demand. This imbalance is putting upward pressure on house values.
The question is, when will Portland’s real estate market slow down? Will the cyclical “laws” of real estate bring a cooling period anytime soon? According to Tim Duy, an economics professor at the University of Oregon, the market won’t slow until inventory catches up to demand.
“There’s no fundamental law that says [the hot real estate market] has to end anytime soon,” Duy told The Oregonian, in June. “And it won’t end until we have more balance between supply and demand in the housing market.”
Ready to Apply For a Mortgage in Portland?
If you have questions about home loans in Portland, Sammamish Mortgage can help. We are a local mortgage company based out of Bellevue, Washington that serves the entire state, as well as Oregon, Idaho, and Colorado. Our mortgage financing experts can work with you to help you determine which one of our mortgage programs is best suited for you. Contact us today with any questions you have about mortgages in Portland, ID.