Here’s a Portland real estate market prediction for 2018 that’s almost sure to come true. Low housing inventory will continue to push home prices north and fuel competition among buyers. In other words, more of the same.
The latest readings of the Portland, Oregon real estate market suggest that tight inventory will continue to be a factor through the end of 2017 and into 2008. 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 in 2018.
Here are the latest predictions for the Portland real estate market through summer of 2018.
Tight Supply Is (Still) Pushing Prices North
In May 2017, the national real estate brokerage Redfin reported that the median sales price for homes in Portland had risen to $433,000.
Home values across the metro area have climbed steadily over the last few years, largely due to an imbalance between real estate supply and demand.
The Portland area attracts residents from elsewhere in the country, but there aren’t enough homes to go around. This has driven prices north at a steady pace, and recent predictions for the Portland real estate market suggest it will continue to some degree into 2018.
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. In May, housing reports showed that Portland had only 1.4 months of supply. So we are talking about a strong sellers’ market here, with a shortage of available inventory.
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.
Homes Are Selling Fast
Homes are currently selling quickly within the Portland metro-area housing market. According to Redfin, properties listed for sale in May spent a median of eight days on the market, before going under contract.
The national median number of days on market was 37 during that same period. This statistic illustrates the high level of demand and limited inventory in the area.
Here’s another telling statistic regarding the Portland real estate market. In May, the percentage of homes that sold above the list price was 54%. That means in more than half of all real estate transactions, people are paying more than the original list price. This is often the result of bidding wars between multiple buyers.
Nationally, only 26% of homes sold above the list price during that month.
Predictions for Portland Real Estate Market Through 2018
Housing analysts at Zillow recently offered a 12-month prediction for the Portland, Oregon real estate market, extending into July of 2018.
The company predicted that the median home value in Portland would rise by 3.7% over the next 12 months (July 2017 – July 2018). House values rose by 8.1% over the previous 12 months, by their estimation.
This prediction more closely reflects the national outlook, and suggests that home-price appreciation in the city is beginning to slow to a more “normal” pace.
At first glance, an outlook calling for smaller price gains might be viewed as a negative indicator. But it’s not. Home values in the Portland area have been rising at a largely unsustainable pace over the last couple of years. They’ve outpaced wages and incomes, creating affordability issues for many.
What we are seeing now could be viewed as a market correction. One could argue that real estate predictions calling for historically average price growth in the Portland are a positive indicator, from an economic standpoint.
Disclaimer: This article includes projections and predictions for the Portland, Oregon real estate market through summer of 2018. Such outlooks were provided by third parties not associated with our company. We have compiled them here as an educational service to our readers.