Portland Real Estate Trends and Housing Market Forecast 2022

Published:
November 30, 2021
Last updated:
January 14, 2022
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The Portland real estate market is a healthy one right now. Home prices have been on the rise, large in part due to the high demand for homes and the continued influx of new residents.

What exactly has been happening in the real estate market in Portland up to now, and where are things expected to go in the coming months and into the new year?

Let’s go over some of the current trends and future Portland housing market forecast 2022 to help you make a more informed buying decision in the months ahead.

Portland Real Estate Trends: What Has Been Happening?

The Portland real estate market has been hot over the past year and continues to be healthy as we round off the year. While the economy took a hit as a result of the health crisis, that didn’t really have much of an effect on real estate in Portland. 

According to RedFin, 1,061 homes were sold in December 2021 in Portland, down slightly from 1,138 during the same month last year.

The average home sells for approximately 2% over listing price and goes pending in about 10 days. Hot properties can sell in as little as 5 days and go as high as 6% over the listing price. 

About 48% of homes sold over asking, which is 4.1% higher than the same time last year. The sale-to-list price in December was 101.2%, a slight increase of 0.1% over last year.

The tight inventory continues to be an issue. Currently, Portland has a 1-month supply of available homes for sale to meet buyer demand. That’s much lower than the 5- to 6-month supply that’s characteristic of a balanced market.

It certainly still is a seller’s market in Portland, as there are still more buyers actively looking for a home for sale versus the supply of homes available. But it also seems as though things have slowed just a little.

Portland OR Real Estate Market: Where Are Home Prices?

According to Zillow, the average home price in the Portland Metropolitan Area is $558,008 That’s a healthy 13% increase from the same time last year.

Having said that, the month-to-month price increases are on the decline. According to the Regional Multiple Listing Service (RMLS), the median sale price in the Portland Metropolitan Area dipped $17,000 from July to September.

That’s a good thing for Portland homebuyers as there may not be as much competition among other buyers and therefore not as many offers compared to where things stood at the beginning of the year. But that doesn’t mean competition doesn’t still exist.

Given the figures from RedFin, it’s still quite competitive out there for homebuyers looking to make a purchase in Portland and surrounding areas.

Low mortgage interest rates have also helped incentivize buyers to get into the Portland real estate market. As of right now, the rate for a 30-year fixed-rate mortgage is 3.11%.

Rates have been hovering around the 3.0% mark for much of the year, though they started off slightly lower at 2.65%. Still, today’s rate is still very low and makes homebuying much more affordable.

Portland Housing Market Forecast 2022: What Is the Outlook?

It’s expected that the housing market in Portland and across much of the US will likely slow down somewhat over the course of 2022 compared to how things went in 2021. Home prices in Portland are not expected to rise as quickly as they have over the past few months next year, though they are still expected to keep up a healthy pace of increase.

According to Zillow, home prices are expected to rise 15.2% over the next year. While that’s a hefty increase, it’s not quite as much as the 20% price increase that homes in Portland saw this year.

Home price increases and sales may slow somewhat over the first half of 2022, then pick up the pace into the latter half of the year.

As the economy continues to improve following the health crisis, employment rates could also improve and wages may increase. This will strengthen consumer spending and subsequently increase buyer demand, which will drive home prices.

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Real Estate Forecast, Portland, Oregon: What Happens Next?

What will the Portland housing market 2022 look like?

Home Prices May Rise

In terms of home prices, they’re expected to continue on an upward trajectory, though they may not jump as sharply in 2022 as they did last year.

Foreclosures May Not Take Off Like What Was Initially Feared

Interestingly, some real estate experts thought that foreclosures would soar after the pandemic hit in early 2020. But that didn’t happen, and experts don’t believe we’ll see a marked increase in foreclosures going forward based on the drop in mortgage forbearance.

Mortgage Interest Rates Could Increase

While mortgage interest rates remain low, there is some speculation about what they’ll do in 2022. The current interest rate environment is helping to keep home buying buzzing, though many expect rates to continue on their ascent into the next year.

If rates continue to increase in 2022, that could deter some homebuyers from getting into the market. According to the Mortgage Bankers Association (MBA), rates are expected to average around 3.6% in 2022. While this is still quite low, it’s still an increase from where things are tight and is about 1.0% higher than where rates were at the beginning of this year.

Larger Centers Like Portland May Not See as Much of a Price Hike

Although the average home price in Portland will increase at a healthy rate, it won’t see as much of an increase as smaller real estate markets. Major cities across Oregon and the entire country have seen incredible gains over recent months and years. But it will be the smaller cities that will shine as some of the hottest markets in 2022.

Are You Ready To Buy a Home In Portland? The Time Is Now!

If you’re ready to get into the housing market in Portland, OR, then now may be the perfect time to do so. With home prices still on the rise and mortgage rates still relatively low, you’ll want to get in sooner rather than later to take advantage of these perks before prices and rates continue to rise.

To ensure you’re fully prepared for your home buying endeavors, we’ve put together a helpful Guide to the Portland Housing Market. Check it out before you embark on your home buying journey!

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Why Choose Sammamish Mortgage?

At Sammamish Mortgage, our loan officers are waiting and ready to help you navigate buying a home in Portland, OR. You deserve the best loan for your specific situation, not the biggest one we can sell you. That’s why we pay all of our LOs a generous salary instead of commissions, so they put your best interests first.

Sammamish Mortgage has been in business since 1992, and has assisted many homebuyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help you get pre-approved. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon, and Washington.

Contact a loan officer if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.

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