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With a growing population and a bustling real estate market, this is currently a hot topic among residents. Let’s look at some of the factors that would influence your decision to buy a home in Portland throughout 2024.
In many ways, now is a good time to buy a home in Portland, Oregon. This is true whether you’re a first-time or repeat buyer. But there are some things you need to know about the local real estate market before moving forward.
The first thing home buyers need to realize is that house prices in Portland have risen steadily in recent years. According to the real estate information company Zillow, home prices have increased over the last 12 month period. Zillow forecasts that the Portland market will see another increase during the upcoming 12 month period as well.
According to Zillow, the median home value in Portland, Oregon is $581,593 as of September 30, 2024. That’s an increase of 5,4% from the year before.
This period of increases was actually foreseen by Zillow’s analysts in the past. Zillow predicted that the market would heat up. In previous years, Portland’s market had shown rapid gains as well.
The market tends to be cyclical, and so current trends can be seen as an expected dip. The market will likely rebound in the near future.
From a market perspective, a case could be made for buying sooner rather than later. Zillow characterizes the Portland market as a “seller’s market” at the moment, but this won’t last forever. If you’re interested in buying a home in Portland, you should consider getting into the market before prices really start to take off.
Home buyers in Portland should also know that the local real estate market is still very competitive right now.
Housing inventory is particularly tight in the “starter home” price range.
According to an analysis from Freddie Mac, Oregon has the biggest shortage of housing of any state in the country, and housing inventory is tight in the Portland metro area, too. At the same time, the population is steadily growing.
Portland home buyers need to enter the market with a realistic expectation of what they can get for the money and a willingness to move swiftly when the right property comes along.
It’s also important to have your financing squared away before you enter the real estate market – as much as possible, anyway. Cash buyers should have the money in the bank with statements to prove it.
Portland home buyers who use mortgage loans (which is most buyers) would be wise to get pre-approved for a loan before house-hunting. Expect the sellers to ask about your financing.
Mortgage rates started off the year at historical lows under 3%, but are now tipping 7%, thanks to repeated raises of the basis point rate by the Federal reserve in an attempt to slow the nation’s inflation.
With mortgage rates rising, home values may begin to slow in their growth, meaning more inventory will open up and Portland won’t be quite the seller’s market that it was.
Here’s a Portland real estate market prediction for 2024 that’s almost sure to come true: Low housing inventory will continue to fuel competition between buyers, and the market will experience a modest increase in median home values.
The latest readings of the Portland, Oregon real estate market suggest that tight inventory will continue to be a factor throughout 2024. We should expect to see an increase in median home values. Here are the latest predictions for the Portland real estate market through as of year-end 2024.
In September 2024, the real estate research firm Zillow reported that the median sales price for homes in Portland was $581,593.
Home values across the metro area have climbed steadily over the last few years, largely due to an imbalance between real estate supply and demand.
The Portland area attracts residents from elsewhere in the country, but there aren’t enough homes to go around. This has caused home prices to steadily increase in recent years. New predictions suggest modest increases in the next 12 months, but this follows impressive gains in previous years.
Zillow does still characterize the Portland market as hot at the moment. The current market is competitive, so buyers should still expect a fair level of competition considering present levels of supply and demand.
As a result of these trends, home buyers should be well prepared, with their financing lined up ahead of time. It’s also important to be realistic with regard to your wish lists and expectations. Being flexible and open-minded goes a long way in a hot real estate market like Portland.
Homes are currently selling at a fast pace within the Portland metro-area housing market. According to Redfin, Portland properties listed for sale in September 2024 spent a median of 23 days on the market before going under contract.
This statistic illustrates the high level of demand and limited inventory in the area.
Also according to Redfin “hot homes” in the Portland real estate market can sell particularly fast. Hot homes tend to go pending in about 6 days. When such homes do go pending, they tend to sell for above list price (around 2% higher, on average). This is more compelling evidence that the Portland market is still robust and will likely remain competitive well into the future.
The median home value in Portland is expected to continue increasing over the next 12 months. House values increased by 5.4% over the previous 12 months. This prediction is consistent with general real estate trends, and suggests the period of rapid appreciation is over, and home price growth will continue to slow going into 2024.
Disclaimer: This section includes projections and predictions for the Portland, Oregon real estate market through year-end 2024. Such outlooks were provided by third parties not associated with our company. We have compiled them here as an educational service to our readers.
A lot of home buyers in the Portland metro area are already looking ahead to 2024 and beyond. And many of them have the same question: Does it make sense to buy a house in Portland right now, or would I be better off waiting until next year?
Answering this kind of question requires equal parts soul-searching and market research. To help you with the market aspects, we’ve compiled some recent stats and trends. The following information will help you weigh the pros and cons of buying a home in Portland in 2024, versus waiting until 2025.
The Portland metro area has been drawing in new people from all over the nation, especially those in higher-priced centers like California. People are looking for more affordable housing while still taking advantage of the perks that come with big-city living. And Portland is a great option for many.
The current metro area population of Portland in 2024 is 2,197,000, a 1.06% increase from 2021. That, coupled with the ongoing squeeze in housing inventory, drove up demand, which increased housing prices in Portland over the past 24 months.
Unfortunately, no one can predict future home-price trends with complete accuracy. But with the current supply and demand situation in the Portland real estate market, it seems likely that house values will continue to increase through early 2024, but the market will slowly become less competitive. Whether you buy now or late will depend on your needs.
Housing analysts and economists predicted an increase for the Portland real estate market over the past year or so. The general consensus is that home values in the area will start to pick up. They were right, and there is still a high level of demand and competition within the Portland real estate market.
However, home prices in the area have risen much faster than wages and incomes, and this kind of trend is generally unsustainable over the long term. The real estate market seems poised to “self correct” in the form of a decline in prices over the coming year.
There is still something of an inventory shortage in the area, and this will affect those buying a home in Portland in 2024 but this could change heading into 2025.
The city is attracting new residents from all over the country, particularly those who are fleeing the exorbitant home prices in California. The resulting population growth has boosted demand for housing, putting upward pressure on house values.
Mortgage rates are another big consideration for those who are considering buying a home in Portland in 2024 or 2025. The question on everyone’s mind is, will mortgage rates continue to rise over the next year?
Interest rates are even harder to predict than home prices. But that doesn’t stop people from trying.
Each month, the Mortgage Bankers Association (MBA) publishes a finance forecast that includes a variety of economic indicators. According to their latest forecast, the industry group expects the average rate for a 30-year mortgage loan to remain low over the coming months. They predicted that rates will hit 4% by the end of 2024. As of November 2024, 30-year mortgage rates were hovering around 7.09%.
Here’s the bottom line to all of this: Nobody can predict future mortgage rates or home prices with total accuracy. But current market conditions suggest that housing costs in Portland, Oregon will likely remain low over the coming months. So a case could be made for buying a home in 2024 versus 2025 — at least where costs are concerned. Home buying costs in Oregon are expected to continue rising through 2024 if home prices continue to increase and mortgage rates continue to rise. So waiting until the following year might cost you.
Anyone who is “on the fence” about buying a home in Oregon should pay close attention to these real estate trends. Obviously, you should never buy a house until you’re fully ready to do so. Homeownership should align with your long-term plans, your lifestyle, and your financial goals.
With that being said, a strong case could be made for buying sooner rather than later, due to the competitive market and the high rental costs we are seeing in Oregon. Ultimately your decision will be based on your specific needs.
Most home buyers in Oregon use mortgage loans to help finance their purchases.
So mortgage interest rates are another important consideration. They’re a component of your home buying costs.
Rates are rising fast right now, so buying today can help you lock in the current rate, which can help save you tens of thousands of dollars – or more – over the life of your loan. If you wait too long and rates rise much higher, it will cost you.
The bottom line to all of this is that housing costs across the state will likely continue to rise for the foreseeable future.
Do you have questions about home loans or refinancing? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire Colorado state, including Boulder, and its many amazing neighborhoods like Whittier, Mapleton Hill, Foothills, and Longmont. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.