Portland housing market wrap 2017
RMLS has just released a wrap of the Portland housing market for 2017.
The actual numbers may surprise some of you since affordability in this area has shown a remarkable rise as compared to just a few years ago. The biggest factor affecting rising prices has been low inventory, and that has not changed for several years. We have a very low inventory of distressed properties and almost no short sales on the market anymore; so those bargains have all but disappeared.
We closed out 2017 with an inventory in the metro area of only 1.6 months (the number of months it would take to sell all homes on the market if there were no new listings.)
Average home prices rose 8.5% during the period from December 2016 – December 2017 from $395,000 to $428,700. In the same comparison, the median sale price rose 9.5% from $347,000 to $379,900. Please check out the graph below (courtesy of RMLS) that shows how prices have risen since 2009.
It is important to note that average price increases are just that. There are neighborhoods where values rose more, and even a few higher priced neighborhoods where values have stabilized with very little increase over the last year. For the most part the fastest rising valuations are in lower cost neighborhoods.
Forecast for 2018 Portland metro area housing market
The consensus is that housing prices will continue to rise in 2018, but the rate of inflation is forecast to slow. As long as Portland remains one of the fastest growing cities in the country and is the second most popular area for re-locations, we are likely to continue to have a higher rate of inflation than most of the country.
Unfortunately, as can be seen by average and median prices, finding a home priced below $200,000 is extremely rare; and when found is most likely either a tiny house or a major fixer. Additionally buyers should know that if and when these homes can be found, they are at best small outdated 2 bedroom, 1 bath houses. Buyers should expect to pay closer to $300,000 and up for a starter home.
Portland named as one of top nine real estate markets to watch for 2018
According to an article in Curbed Portland has been named one of the 9 real estate markets most likely to be active in 2018. According to author Patrick Sisson, “Curbed consulted a number of experts—representing the Urban Land Institute (ULI), RCLCO Real Estate Advisors, Zillow, Trulia, and Realtor.com—to find markets tapped to be fast-growing and most dynamic in 2018. It’s notable that many traditionally top markets, especially in the Northeast, didn’t make the cut. While each city has different strengths and upsides, they all present unique opportunities.” Portland was included in the list due to major expansion and development of our beautiful waterfront where plans are to construct 2,200 residential units, 1.5 million square feet of office space, three parks, and a public plaza and waterfront by 2020.