There are several important factors you should consider before you refinance your mortgage this year, including current rates and your financial situation.
Buyers want to know how much they can expect to pay for homes and what kind of competition they face, while sellers want to know what their homes are worth and how much they can sell their homes for.
Thus, here is a look at the Portland real estate prediction for 2021: continued low housing inventory will push home prices slightly higher throughout the year.
In This Article:
- Tight Supply Is (Still) Pushing Prices North
- Homes Are Selling at a Healthy Pace
- Predictions for Portland Real Estate Market Throughout the Rest of 2021
The latest readings of the Portland, Oregon real estate market suggest that tight inventory will continue to be a factor through much of 2021. While we might not see the above-average price gains of the last year, experts agree that home values in Portland will almost certainly continue to rise throughout the rest of the year.
That said, here are the latest predictions for the Portland real estate market for the rest of 2021.
Tight Supply Is (Still) Pushing Prices North
In April 2021, the real estate research firm Zillow reported that the median sales price for homes in Portland had risen to $511,587.
Over the past couple of years, home values across the metro area have increased sharply over the past year. Over the past 12 months, Zillow recorded an uptick in home prices of 10.6%. Moreover, it appears the market in Portland is quite hot. Analysts predict that people can expect to see very strong home price gains.
The Portland area attracts residents from elsewhere in the country, but there aren’t enough homes to go around at present. Consequently, home prices are expected to continue pushing north at a steady pace, and all signs indicate that they will continue to go up for the Portland real estate market for the foreseeable future.
How tight is the housing supply in Portland? Consider this…
A “balanced” real estate market is considered to have five to six months’ worth of supply. As of early 2021, housing reports indicate that Portland had one months’ worth of supply.
The entire state of Oregon is currently in an inventory crunch, recording the biggest housing supply deficit, according to the research team at Freddie Mac.
As a result of these trends, home buyers should be well prepared, with their financing lined up ahead of time. It’s also important to be realistic with regard to your wish-lists and expectations. Being flexible and open-minded goes a long way in a hot real estate market like Portland.
Related: Check out our Portland buyer guides
Homes Are Selling at a Moderate Pace
Homes are selling at a decent pace within the Portland metro-area housing market. According to Redfin, properties listed for sale in April 2021 spent a median of 7 days on the market before going under contract.
This statistic illustrates the relatively high level of demand and limited inventory in the area.
Predictions for Portland Real Estate Market Throughout the Rest of 2021
Housing analysts predict that the median home value in Portland would rise throughout the rest of 2021.
Average home prices in Oregon also increased 10.9% over the last year and are expected to increase throughout the remainder of the year.
At first glance, an outlook calling for smaller price gains compared to the state of Oregon might be viewed as a negative indicator. But it’s not. Home values in the Portland area are expected to rise at a more sustainable pace this year. That’s a better scenario than where price gains were a few years ago when they outpaced wages and incomes, creating affordability issues for many.
One could argue that real estate predictions calling for historically average price growth in Portland are a positive indicator from an economic standpoint.
Disclaimer: This article includes projections and predictions for the Portland, Oregon real estate market through the spring of 2022. Such outlooks were provided by third parties not associated with our company. We have compiled them here as an educational service to our readers.
Have Questions About Mortgages in Portland?
Are you ready to apply for a mortgage in Portland? If so, Sammamish Mortgage is ready to help you. We are a local, family-owned company based in Bellevue, Washington. We currently lend in all of Washington, Oregon, Idaho, and Colorado and offer many mortgage programs for qualified borrowers. Please contact us if you have mortgage-related questions.