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Summary: Are you planning to buy a home in Portland in 2020? If so, there are certain trends in the market you should know about. This article will provide more details about Portland’s housing outlook.
What will the rest of 2020 look like for Portland, Oregon’s real estate market?
1. Home prices may remain stagnant over the next few months.
If you live in the Portland area, you’ve probably already seen headlines relating to home prices in recent years. However, home prices have not made much traction over the past year. According to Zillow, the average home price in Portland increased just 0.6%. Today, the average home price is $467,600.
Looking forward, experts are not entirely certain what home prices will do over the next 12 months, as the coronavirus pandemic has caused a lot of uncertainty over what the housing market will do, and therefore where prices will be a few months from now.
So, that’s the first prediction for Portland’s housing market. Home prices might slow down a bit over the months ahead and may remain stagnant until the health crisis lifts.
2. Summer sales in Portland may boom this summer.
Last month, the number of listings in Portland spiked as the economy started openikgn up amidst the COVID-19 pandemic. And with unemployment rates falling and optimism brewing, there is some thought that this summer might see a boom in more listings and sales as buyers come out of the woodworks.
The health crisis might not be very predictable, but forecasts for the real estate market in Portland could be. Even though many more listings have popped up and may continue to spring over the next few months, there is still a low number of residential homes for sale in Portland, and in Oregon as a whole. In fact, the state is currently experiencing the largest shortage in housing in the country.
Right now, there is barely a 2.4-month supply. And with so much built-up demand among buyers to get back into the swing of things, experts suggest that this summer could see a surge in listings and transactions.
Home buyers would be well-advised to be prepared. Among other things, this means having your financing pre-arranged before you start shopping for homes. If you’re going to use a mortgage loan to finance your purchase, you can benefit from getting pre-approved before entering the real estate market.
3. Mortgage rates will remain low throughout the rest of the year.
Mortgage rates have been incredibly low this year, with a steady decline beginning about a year and a half ago. Today, rates have hit their all-time lows. In fact, it’s the third time within the last few months that rates had hit such records. Today, the interest rate for a 30-year fixed-rate mortgage is 3.13%.
While rising home values have been a big concern for home buyers in the area, the low mortgage interest rates are offsetting this expense.
The Mortgage Bankers Association (MBA) routinely issues forecasts for a variety of economic indicators. Their “finance forecast” also includes an outlook for 30-year mortgage rates. In their latest report, the industry group predicted that the average rate for a 30-year fixed home loan would remain well under 4.0% for the rest of this year.
Disclaimer: This article includes housing market predictions for Portland, Oregon that were curated from various third-party sources not associated with our company. We have presented them here as an educational service to help home buyers be better prepared.
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