Summary: What would typically be a very busy spring real estate season in Portland has slowed down somewhat as a result of coronavirus fears. This article will go over the current temperature of the market in Portland and how it may affect buyers looking to purchase a home in Portland in 2020.
Listings tend to pop up quick quickly and in droves over the spring season as homeowners often wait until the winter season is over. But this year, spring in Portland is not as busy in the real estate market, largely as a result of the coronavirus pandemic sweeping the nation.
However, 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. This doesn’t mean the Portland housing market will be “cold” in 2020. It just means that it’s cooling down, compared to the last couple of years. In fact, Zillow predicts that the average home price will increase 2.8% over the next year, after seeing a slight dip in prices over the past 12 months.
Portland, Oregon a Cooler Market in Spring 2020
This time of year is traditionally one of the busiest times for real estate under normal circumstances. But COVID-19 is certainly having an effect on markets across the country, including in Portland, Oregon. Sellers appear to be more hesitant to list their homes for sale because they don’t like the idea of strangers walking throughout their homes right now.
And sellers that do list their homes are forgoing open houses in an effort to keep up with social distancing and avoid having germs left behind after visitors leave.
Other sellers may be holding off on selling because of the loss they may have suffered as a result of stock market drops. They may prefer to wait until their IRAs or 401(k)s are back up to par after the coronavirus pandemic slows down before selling.
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.
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 2020?
On a positive note, mortgage rates for Portland home buyers remain attractive, as we move further into 2020.
According to the weekly mortgage industry survey conducted by Freddie Mac, the average rate for a 30-year fixed home loan is 3.65% and has been on a steady decline over the past year and a half. 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 4% 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.
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.