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Portland’s Real Estate Market Has Been Healthy in Early 2021

Published:
November 8, 2017
Last updated:
November 24, 2021
Portlands Real Estate Market

Despite the coronavirus pandemic, the Portland housing market is still healthy.

Listings tend to pop up quick quickly and in droves over the spring season as homeowners often wait until the winter season is over. And even though last spring saw a slowdown as buyers and sellers feared the pandemic, things quickly picked up from there. In fact, the year 2020 ended off very well for the Portland housing market. And the trend appears to be continuing into 2021.

In This Article

Low mortgage rates make now a great time for buyers to get into the market and take advantage of major savings. And homeowners may also want to consider refinancing their mortgages in an effort to lock in at a much lower interest rate than what they have now and save tens of thousands of dollars over the life of their mortgage.

Of course, all things are relative when it comes to real estate. Zillow predicts that the average home price will increase 10.4% over the next year, after seeing an increase of 8.5% over the past 12 months.

Related: Cost of buying a home in Portland, OR

Portland, Oregon a Healthy Market in Early 2021

COVID-19 certainly had an effect on markets across the country in the spring of 2020, including in Portland, Oregon. Sellers were more hesitant to list their homes for sale because they don’t like the idea of strangers walking throughout their homes.

And sellers that did list their homes were forgoing open houses in an effort to keep up with social distancing and avoid having germs left behind after visitors leave.

Other sellers may have held off on selling because of the loss they may have suffered as a result of stock market drops. They may have preferred to wait until their IRAs or 401(k)s were back up to par.

But such is not the case in early 2021. In fact, the Portland housing market is very healthy right now, and picked up shortly after the initial spring 2020 lull. Since then, the real estate market across the city and the state of Oregon has been hot. Sellers are fetching high prices for their homes, and buyers are facing stiff competition amongst each other.

Low Rates Make Today is a Great Time For Buyers and Homeowners Looking to Refinance

Having said that, now is a fantastic time to buy or refinance. Mortgage rates have plummeted and are expected to remain low over the short-term, allowing buyers and homeowners to save a ton of money in interest.

Rates are so low right now that buyers and homeowners may want to look into applying for a new mortgage or a refinance program to take advantage of these rates. Buyers have more purchasing power because of these low rates, allowing them to buy more expensive homes than they may otherwise have not been qualified to purchase at higher rates.

Related: Why 2020 Could Be a Great Time to Buy a Home in Portland, Oregon

Live Portland Mortgage Rates

Tight Housing Inventory Continues

The local supply-and-demand situation in Portland can be summed up with a single word: shortage. There just aren’t enough homes for sale in the local real estate market to satisfy the level of demand from buyers. This is putting upward pressure on home prices and making things very competitive for buyers seeking a house to purchase.

Right now, the Portland area has about a 2-month supply of homes available for sale, which is much lower than what is considered to be a balanced market at 5- 6-months supply.

Meanwhile, the city and the broader metro area continue to attract new residents from elsewhere in the state, and from across the country. A strong local economy, natural beauty, and other factors are boosting the city’s population and bringing more home buyers into the local real estate market. And all of this at a time when inventory is constrained.

What Will Mortgage Rates Do in 2021?

On a positive note, mortgage rates for Portland home buyers remain attractive, as we move further into 2021.

According to the weekly mortgage industry survey conducted by Freddie Mac, the average rate for a 30-year fixed home loan is 2.65% and has been on a steady decline over the past couple of years. This is good news for Portland home buyers, especially when you consider that home prices in the area have been rising steadily and continue to do so. Further, experts agree that rates will remain under 3% for the rest of the year.

Disclaimer: This article includes data and commentary provided by third parties not associated with our company. We have compiled them here as an educational service to our readers.

Get an Instant Mortgage Rate Quote Today

Need a Mortgage Loan in Portland, OR?

If you are looking to buy a home in Portland, OR, you’ll want to work with a seasoned mortgage specialist to help. Sammamish Mortgage has been helping borrowers across the Pacific Northwest since 1992, including Washington, Oregon, Colorado, and Idaho. We offer competitive rates on a variety of mortgage programs. Please contact us if you have financing-related questions or would like to receive a rate quote.

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