Summary: Buyers want to know how much they can expect to pay for homes and what kid of competition they face, while sellers want to know what their homes are worth and how much they can sell their homes for. Here’s look at the Portland real estate prediction for 2020: low housing inventory will push home prices slightly higher throughout the year.
The latest readings of the Portland, Oregon real estate market suggest that tight inventory will continue to be a factor through the remainder of 2020 and possibly into 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 modestly in 2020.
Here are the latest predictions for the Portland real estate market over the coming months.
Tight Supply Is (Still) Pushing Prices North
In April 2020, the national real estate brokerage Redfin reported that the median sales price for homes in Portland had risen to $450,000.
Over the past couple of years, home values across the metro area have remained rather stagnant and haven’t really gone anywhere. In fact, Zillow recorded a slight dip of 0.2% in home prices over the last 12 months. The market in Portland remained cool over these months, but things are expected to warm up a little and prices are expected to climb back up over the next year in Portland.
The Portland area attracts residents from elsewhere in the country, but there aren’t enough homes to go around. This situation is expected to push prices north at a steady pace, and recent predictions for the Portland real estate market suggest it will continue to some degree into 2021.
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 2020, housing reports showed that Portland had about 2 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 currently selling at a decent pace within the Portland metro-area housing market. According to Redfin, properties listed for sale in April spent a median of 29 days on the market, before going under contract. But hot properties go pending in about 5 days and sell for about 2% over their listing price
This statistic illustrates the relatively high level of demand and limited inventory in the area.
Predictions for Portland Real Estate Market Through 2020/2021
Housing analysts at Zillow recently offered a 12-month prediction for the Portland, Oregon real estate market, extending into April 2021.
The company predicted that the median home value in Portland would rise by 2.8% over the next 12 months (April 2020 – April 2021). That’s a change in price direction over the previous 12 months, when home prices dipped 0.2%.
Portland’s real estate market isn’t as warm as the entire state of Oregon just yet. Average home prices in Oregon increased 3.0% over the last year and are expected to increase 3.9% YOY into April 2021.
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 over the next 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 2021. 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.