Portland Real Estate Market Report – February 2017
Today is the first day of spring in 2017 and the Portland housing market is slowly waking up to a busy spring real estate market this year. Like the long and cold winter of 2016-2017, the market has been slow going with homes staying on the market for many more days compared to the previous year. In past February, things didn’t improve a whole lot with 45 average days on the market, which is same as January of 2017. Buyers are out there still, however, lurking around for a great deal and bidding wars still happen as I have been personally involved in a few already this year.
Inventories are still very low in the Portland market. There are even fewer inventories in Portland this year than 2016. Due to this low supply, buyers are still waiting for more homes to pop up in the spring. More millennial are jumping into home buying as their job experience has become stable and thus now qualifying for mortgages. I am waiting to see what the numbers look like in March and April because I want to see how things are playing out in real life compared to the Portland housing forecast for 2017 I have written.
As far as home prices, there has been a 12% increase since February 2016. 2016 has been a hot market and the difference is the median sold homes shows just that. 2017 will probably not going to be as hot of a year as 2016 with the rising mortgage rates although the low amount of home supplies in Portland will nevertheless push the prices up. New constructions are only happening in suburb areas especially out in Hillsboro and Damascus. As much as many people love new construction homes, it is not affordable to most people if one was to be built in Portland or areas closer to downtown Portland.
What about the increasing population and the demand for homes? Did the snow and freezing rain slow down the influx of migration to the Portland metro? Despite the unusually cold weather, our housing prices in Portland is much cheaper than that of other West Coast cities and that will still be a reason to move for some people.