2017 is set to be another exciting year for the housing marketing in Portland. As job opportunities are created in the area, many are moving here to find secure work, which means an increased need for housing. That’s why just about every aspect of the Portland housing market is on an upward trend, with no signs of letting up.
Meeting the Growing Demand for Housing in Portland
According to estimates, upwards of 40,000 new residents could move into Portland and the suburbs of the city during 2017, and the city simply isn’t building new homes fast enough to accommodate that many people. The result is an estimated 5.5% increase in home prices according to Zillow. The same company predicts a mere 3.2% rise in home prices across the country on average. VeroForcast predicts price appreciation of 11.1% for Portland in 2017.
Strong Price Increases Forecasted for Homes in Portland
Because Portland is attracting educated professionals to work at high paying jobs, people moving to the area are unlikely to shy away from increased housing prices. It’s no wonder the median sale price has climbed from just over $160,000 back in 2000 to well over $340,000 in 2016. Due to the lack of supply, the projections show those figures continuing to increase this year. With the average cost of a new home being approximately $400,000, purchasing existing properties may prove to be the more cost-effective option.
Portland and Other Western US Cities Show Biggest Sales and Price Increases
According to research released on Realtor.com®, five of the top 10 growing markets are on the west coast, and Portland is one of those five (along with Tucson, AZ and three California cities). Not only does the site forecast a 5.8% price increase for these areas, but also a 4.7% sales increase, making this a prime time to sell for Oregon homeowners looking to make a change.
Homes Needed More than Apartments
While new apartments are likely to be popular in less expensive suburban areas, the urban apartment market is the only sector seeing signs of potentially cooling off. Lots of new apartments are available in the city and rents are very high, driving many to the suburbs or to look for a home rather than an apartment. As a result, what Portland is really finding itself short on right now is houses to meet the growing demand.
The Housing Shortage Makes It a Seller’s Market in Portland
If you notice the Portland Metropolitan Statistical Area (MSA) Housing Inventory chart, you’ll see that while housing inventory was at a high back in 2008, it reached a low in 2016 with just a little over 4,000 homes available. With 40,000 move-ins expected during 2017, 4,000 is just a fraction of the available homes needed to accommodate the influx. Since new construction alone can’t make up the difference, it is predicted that Oregon homes will sell at a premium in 2017
Why Now is the Time to Sell…Not Spring!
Many homeowners hold off on putting their homes on the market until the spring-buying season. That may not be a good strategy for 2017. The National Association of Realtors (NAR) recently published the months that most people listed their homes for sale in 2016 as noted in red. With Portland job growth and the mortgage interest rates projected to rise later this year, buyers do not want to wait until spring – they are showing up early this year! Realtor.com revealed January 2017 as the quickest start to the year on record, with homes selling four days faster than last year. It may make more sense to list your home today to beat the rush of housing inventory that is sure to enter the market in the spring. Waiting until spring to list your home means you will have greater competition.
What Is Your Portland Home Worth in 2017?
If you are wondering what these figures mean for the value of your home, you can get started by heading over to this FREE home valuation tool – . Enter your home address to find out what your home is currently worth. If you’d like to receive and even better estimate of your home’s true value, give me a call at (503) 320.5141. I can assist with determining the optimum price your home could sell for now and how quickly it could sell.
If you have any questions about how you can take advantage of the current market, simply give me a call at (503) 320.5141 or email me at Michelle@ParkPlacePDX.com. I’d love to hear from you!
Michelle Johnson | Licensed Oregon Realtor® | Park Place Real Estate | Website