Summary: Home prices across Oregon have risen over the past year, but what will the market do for the rest of 2020. This article will explain.
In recent years, home prices in Oregon have seen above-average gains. This was largely due to the still-lingering imbalance between supply and demand. (Lots of buyers, not enough homes for sale.)
However, the Oregon housing market slowed down somewhat to a more “normal” rate of price growth over the recent past. Right now, the average price for a home in Oregon is $372,800. Prices have gone up 3.5% over the past 12 months.
Low Inventory Continues in Oregon
Oregon is currently experiencing some of the shortest housing inventory in the entire country. Right now, Oregon has less than a 3-month supply of housing inventory to supply the demand among buyers. That’s a far cry from the 5- to 6-month supply that characterizes a balanced market. So, buyers don’t have a lot to choose from when it comes to buying a home in Oregon.
Home Prices Uncertain Amidst the Current Health Crisis
While prices in Oregon have increased over the past year, it’s difficult to say what they’ll do over the next 12 months as economic uncertainty remains. The coronavirus pandemic wreaked havoc on the real estate market across the country, but buyers are coming out of the woodworks.
May saw a huge spike in the number of listings on the market in Oregon from the month before, though the numbers are still much lower than the same time last year. There is also speculation that the summer will see a surge in listings and sales as buyers who have been on the sidelines are increasingly ready to get into the market.
Oregon’s Housing Market is Still Strong Despite COVID-19
While COVID-19 has shaken the economy across the state and the country, the real estate market in Oregon is still relatively strong, considering what’s been happening. Typically, the housing market sees an uptick in the spring season as more buyers begin looking for homes. Perhaps that trend is a little late this year, with a strong summer anticipated.
Home prices may remain flat throughout the year as threats of the virus and ongoing unemployment risks hamper demand among buyers. But that demand isn’t necessarily snuffed out. In fact, it’s still relatively strong, and we may be seeing a slight uptick in sales over the coming months.
The coronavirus pandemic has also prompted buyers to rethink their needs. As stay-at-home orders have forced people to stay indoors, living in smaller spaces with no yard space has proven to be difficult. As such, many people are starting to consider living quarters that offer more in terms of interior space and backyard space. Having quick access to the outdoors without having to cram into an elevator with others seems more appealing, and these needs will likely benefit the suburbs in Oregon.
People who live in congested centers like NYC are looking at places like Portland and other Oregon cities. This could lead to an influx of buyers and residents to Oregon while allowing buyers to take advantage of relatively affordable home prices.
Disclaimer: This article includes forecasts and predictions relating to the Oregon real estate market in 2018 and beyond. Such statements were provided by third parties not associated with our company. We have curated and compiled them here as an educational service to our readers.
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