Portland Housing Market Report – August 2017
So, what has been happening in Portland real estate market in August 2017? RMLS data suggests that the market trend is very similar to August 2016 in terms of number of listings, sold homes, and the average days on the market. 24 days on the market suggests that the market is still hot and homes are selling relatively quickly. It’s important to notice that the Portland housing market is bit of a mixed bag right now. Each neighborhood is different in terms of how quickly inventories are sold as expensive markets are slowing down quite a bit compared to mid-range markets and below. Mid-range or below markets are very hot as there is a big demand for housing. The mortgage rate is still low allowing more home buyers to get into the game. Last year around this time of the year, economists suggested the mortgage rates will increase many times but luckily it hasn’t happened yet.
The average home price increased 4.7% since 12 months ago, which is a moderate increase given the double digit increase in the past. Most of the increase has happened in more up-and-coming areas where prices are appreciating more quickly in those areas once stagnant with demand. Lots of developments are taking place east of 82nd and East Portland homes are now attractive options for lots of home buyers looking for a nicer home with larger lots in safe pockets for half the price as they would be in some inner Portland neighborhoods. More and more neighborhoods east of 205 are being revitalized and safe and clean residential pockets have increased quite a bit.
Even though the days of double digit increase in Portland are gone, the domino effect is still happening throughout the region and prices in once affordable neighborhoods are going up more rapidly than any other places. As with the national real estate forecast, next five years will be a steady and slow appreciation in home prices in Portland and the metro area. This winter housing market of 2017 in Portland is also expected to slow down similar to last year and that will allow some buyers to negotiate better with sellers on pricing and repair items.