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The Portland, Oregon real estate market has generated a steady stream of headlines over the last couple of years, mainly due to rapidly rising home prices in the area.
What might we expect from the Portland housing market in 2021? What will be some influencing factors that will shape the market this year? Here are some current trends that could shape the real estate scene this year, affecting both buyers and sellers.
Let’s start with an update on home prices. According to recent real estate reports, the median sales price for Portland, Oregon was $497,589 in January 2021. That was the most recent data available at the time of publication.
That number is up from the same time the year before, and forecasts suggest that prices are expected to rise in Portland by 10.4% over the next 12 months. These trends foreshadow what the Portland real estate market might be like in 2021.
There are a few things driving prices up in Portland, and a growing population is one of them. Right now, Portland is the second-largest city in the Pacific Northwest behind Seattle with a population of about 2.5 million. Over the past decade. the city’s population has been almost double the national rate.
People are moving into Portland from all over, especially from very expensive markets like California. Given this trend, it’s possible that this increase in population will continue into the near future, which could be a driver of home prices with heightened demand.
Many people are also flocking to Portland because of its thriving economy. The labor force is strong, and people appreciate a place with relatively affordable home prices along with employment opportunities.
Right now, the unemployment rate in Portland is 8.0% because of the current health crisis. While that may seem high, it’s actually lower than where it was earlier in the year. The labor market is anticipated to improve over the next few years as the economy recovers from the current crisis.
Inventory is another important factor that’s driving the current housing market. A shortage of housing supply has affected the area over the last couple of years, and it will likely be an issue for the Portland real estate market in 2021 as well. So it’s still a sellers’ market.
Recent reports show that Portland had roughly a 2-month supply of homes for sale as of January 2021. That’s up a bit from the low of 1.3 months in spring of 2017, but it is roughly the same as the national average.
A balanced real estate market has around five to six months worth of supply, according to economists. So by that definition, the housing situation in Portland is still very constrained. This will be another influencing factor for the Portland housing market in 2021.
The bottom line is that we are starting to see some changes with regard to home prices and available supply. Still, the Portland real estate market will remain highly competitive in 2021, as it has been over the last few years. Strong demand and short supply will continue to put upward pressure on home prices, though they appear to be slowing down a bit.
Are you looking to buy a home in Portland in 2021 and need to apply for a mortgage to finance your purchase? We’re here to help. Sammamish Mortgage has been providing mortgage programs to borrowers all across the Pacific Northwest since 1992, including Washington State, Colorado, Idaho, and Oregon. Get in touch with us today if you have questions about applying for a home loan.
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