The 2017 Portland Real Estate Market Report is a treasure-trove of insights concerning what’s happening in terms of home sales in the city. The report belies the claims of news stories early in the year that buyers were scrambling to buy new homes and were willing to accept a price of as much as 75 of the actual market value of the property. What appears to be happening is that the incredible appreciation was more the exception rather than the rule.
So now, for the actualities. The average home for sale in the city takes just a little more than two months before the said house passes ownership. By far, the biggest appreciation comes from North Portland and Portland Metro where it will be safe to say that the length of time it takes to sell a home is just a little below two months and well over a month, respectively.
The best time to sell your house this year is still May in line with traditional forecasts year after year. Of course, there are as many seasonal reasons for this scenario to happen along with hard statistics culled from census data. To illustrate, the vast majority of credible home as well as real estate associations is predicting the national average rise in home prices at around 6.
Accordingly, Portland’s rise will be higher than the USA-wide average because there are way lesser new homes being constructed in the state of Oregon. Another reason is the projected increase in new jobs. In addition, the national average when it comes to unemployment has been projected to go down between 5 and 4.5.
This resulting increase in buying power will certainly have a significant impact on Oregon which is already being touted as the second best go-to state in the entire country. More than half of the crossover population is projected to consider buying a new home as opposed to paying rent. In fact, for 2017, the average price for a Portland home for sale has been pegged at between 350,000 to 400,000.
Having Washington and California as neighbors will continue to be a blessing to Portland inasmuch as the two states are known hubs for real estate activity. However, experts are predicting that the 2012 increase in new home prices by as much as 15–isn’t likely to occur again.
What’s more likely to happen is a modest increase of as much as 7 in real estate prices. As you can see, the prevailing market projections are based on the law of supply and demand. In a way, it has become a blessing for homeowners that there has not been any dramatic increases in new home construction in the state of Oregon. With the supply side being fairly static, the resulting increase in demand for new homes has emerged as sustainable.
Two key areas in the Portland landscape that show the most promise are the north side and the Beaverton suburb. In other words, these locales will be the two places where homeowners can realize the most significant demand for what they have to sell. At the same time, the promise of the Trump administration for more job creation is beginning to take shape–leading to the increasing purchasing power of the average household although still to a moderate extent.