Summary: Timing your home purchase right can be highly beneficial. Depending on when you buy, you could save yourself quite a bit of money. The question is, should you buy a home in Portland, OR in 2020 or 2021? This article will provide some insightful information to help answer your pressing questions and help you make the right decision
“Should I buy a home in Portland, Oregon? Is 2020 or 2021 a good time to buy? Is a house a good investment right now?”
These are the kinds of questions Portland home buyers are asking themselves. And they’re certainly great questions to ask. Below, we have gathered some information to help you answer these and other real estate-related questions.
Should I Buy a Home in Portland, Oregon Right Now?
For many residents, buying a home in Portland, Oregon makes a lot of sense right now. The local housing market is rather cool, with prices relaxing, though the market still remains strong. Even though home prices posted solid gains over the last few years, prices have cooled, making this a potentially prime time to enter the market.
Not only that, but home prices are expected to climb back up again over the next year – albeit modestly – which means buyers can get in the market before prices start to take off, saving them money and allowing them to realize quick equity.
The job market has also steadily improved since the recession, with unemployment now below 4%. In a strong and stable market like Portland, buying a home is a fairly sound investment.
Of course, these are all external market factors. From a market perspective, one could argue that now is a good time to buy a home in Portland, Oregon. But you have to make sure it’s a good time for you personally.
Questions to ask include:
- Do you plan to stay in the Portland area for at least the next few years? If so, buying might make sense for you.
- Do you have stable employment and income right now, with a reasonable expectation for continued employment? If so, you can put another check mark in the “buy” column.
- Would owning a home improve your quality of life in some way?
If you answered yes to these questions, then buying a home in Portland might be a good move for you in 2019 or 2020.
Is it a Buyers’ or Sellers’ Market Right Now?
As we head into the second quarter of 2020, Portland is still favoring sellers, even though the market has cooled over recent months. That’s because there’s a lot of housing demand, but not enough inventory to satisfy it. In other words, there are more buyers in the market than homes for sale.
This was the story for a long time, and most analysts expect the trend to continue over the near future. Even though the Portland housing market has cooled over the past few months, it is still somewhat competitive. According to Redfin, homes in Portland sell after 40 days on the market and typically only need one offer before selling. Homes sell for about 1% under listing price, so sellers are getting pretty close to what they’re asking for. Hot properties can sell for about 1% over listing price and go pending in as little as 7 days.
Housing inventory in the city has increased very slightly over the recent past, but not nearly enough to shift the market. In fact, there is only a roughly 2-months supply of inventory in Portland, which is well below what is considered a balanced market.
Anyone planning to buy a home in the metro area in 2020 or 2021 should be prepared for a high level of competition from other buyers. In this context, being prepared means having your financing lined up ahead of time, and making a strong first offer on a home.
Will Portland Home Prices Rise in 2020 or 2021?
According to real estate research firm Zillow, Portland home prices are expected to increase 2.8% over the next 12 months. Zillow recently reported a 0.2% dip in prices over the last 12 months from March 2019 to March 2020.
At the time this article was published, the median home value in Portland, Oregon sits at around $462,300.
As a Homebuyer, How Can I Improve My Chance For Success?
There is still a lot of competition among homebuyers in Portland, Oregon, even though the local market has slightly cooled. Still, there are things you can do to improve your chance for success. Here are some ways to tip the scales in your favor.
- Have your financing squared away. If you’re a cash buyer, you should be prepared to show the seller bank statements or some other “proof of funds.” If you’re using a mortgage loan to buy a house in Portland, get pre-approved before you enter the market.
- Know the market, and move swiftly. Efficiency is key when operating in a competitive real estate market, and a little research goes a long way. Do your homework in advance to find out which neighborhoods and homes fall within your budget. Narrow your search to these realistic targets.
- Make a strong first offer. Portland is a competitive real estate market right now. To succeed in such a market, you’ll want to make a strong purchase offer backed up by recent sales prices. This will make the seller more inclined to accept your offer.
- Don’t quibble over nickels and dimes. If you find a home that meets most of your needs and falls within your budget, it’s probably time to seal the deal. You can be sure there are other buyers who want that same property. Keep this in mind as you negotiate with the seller. Focus on the big picture, not the “nickels and dimes.”
So, should you buy a home in Portland in 2020 or 2021? That’s a question only you can answer. But hopefully, we’ve given you enough information to reach that conclusion.
Need a Home Loan in Portland, OR?
If you’re in the market to buy a home in Portland, Oregon, Sammamish Mortgage is available to help. We offer a wide variety of mortgage programs and tools with flexible qualification criteria. We’ve been helping buyers obtain the mortgages they need in Oregon, Washington, Colorado, and Idaho since 1992, and we’d love to help you too. Please contact us today to get started.