Summary: Buyers who plan to purchase a home in Portland in 2020 should start planning early and have plenty of patience. While home prices are somewhat stagnant right now, it can take some time to find a property that meets all of your needs.
For a long time, we’ve been hearing how the major housing markets in the Pacific Northwest have been on fire with fierce competition and limited supply.
For the most part, that’s still true. But the real estate market in Portland, Oregon is currently undergoing some changes. Home-price growth has slowed considerably over the last year or so.
Portland Housing Market Cools Down in 2019 and Early 2020
Portland’s housing market has experienced double-digit annual price growth in recent years. Home values rose 11.4% in 2016 alone, according to a report from the real estate data company Clear Capital.
This above-average growth was largely the result of a skewed supply and demand situation. Plenty of people were looking for homes, but supply was very limited. Thus, home prices rose rapidly and outpaced the national average in a good way.
While there is still an imbalance between supply and demand, the Portland housing market appears to have cooled be cooling down a bit in terms of home-price appreciation. According to the real estate information company Zillow, the median home value for Portland, Oregon decreased by around 0.1% (reported in February 2020). That’s a big difference from how quickly prices rose between 2012 to 2018.
So clearly we are witnessing some changes in Portland’s housing market. Evidently, a lopsided supply and demand picture can only boost prices so far before they begin to slow.
The Affordability Factor
Affordability has a lot to do with this. Over the last couple of years, a rising chorus of local officials and housing advocates have pointed to an affordable housing crisis in Portland, Oregon. Portland’s Metro Council even considered a bond measure for the 2018 general election to dedicate funds for the creation and preservation of up to 2,000 affordable homes in the Portland area.
So perhaps this is a situation where the unwillingness or inability of home buyers to pay ever-rising prices is, in fact, slowing home value appreciation.
Whatever the case, it’s clear that home prices in the Portland, Oregon housing market have slowed considerably over the last few months. And that’s a good thing, from a sustainability standpoint.
Competition Remains High Among Home Buyers
Home sales in Portland rebounded in the summer of 2018 to their highest level in almost two years, according to the listing service Regional Multiple Listing Service (RMLS). The median sale price as of July 2019 reached $457,000.
However, home prices remained stagnant since then, even retreating slightly over the past year, with prices teetering around that mark since. According to Zillow, Portland’s housing market is rather cool right now and prices are not expected to go anywhere over the next 12 months, especially considering the current health crisis that’s going on.
That said, there’s still a lot of competition among buyers. Anyone planning to buy a home in Portland during 2020, or even 2021, should start early and have plenty of patience. In a tight housing market, it can take some time to find a property that checks most of your boxes. Plus, with mortgage rates as low as they are right now, buyers can take advantage of more affordability.
Want to Apply For a Mortgage in Portland?
Are you looking to buy a home in Portland in 2020 or beyond? Do you need a mortgage to finance your purchase? We can help. Sammamish Mortgage has been working with borrowers across the Pacific Northwest for about 28 years, including Washington State, Colorado, Idaho, and Oregon. We offer many different mortgage programs to suit the needs of every borrower. Get in touch with us today if you have questions about applying for a home loan.