Portland Housing Market Report – July 2017
The Portland real estate sales statistics for July 2017 are out! As a quick summary of what’s happening in Portland in July, you will find that the numbers are about the same as July of 2016. Median sales price is $430K, which is same as last month and this is only up 2.4% from July 2016. This doesn’t mean your home value only went up that much compared to last year. We need to average values for each month and also for your specific neighborhood in order to get an accurate figure. For this, you will need to contact me and I will be happy to send you specific data on your home value in your neighborhood. The average days on the market still suggests buyers are quick to grab hot deals.
In last month, I mentioned in the June Housing Market Report that things are slowing down in certain neighborhoods where prices are way above the median value. However, in markets where the median sales price is around $350K, the market is still very hot. East Portland and St. Johns are still really hot and a nice 3 bedroom 2 bath house in a good pocket is being sold very quickly and over asking prices.
In a bigger picture, the Portland market is starting to plateau because the housing market prices have gone up so much in the last few years and the economic fundamentals need to catch up. There are way more Oregonian families around the Portland area who can afford around $400K or less than those who can afford over $600K homes. Therefore, the demand is still great for the median or below housing inventories. Portland’s job market is still strong and more people are employed than ever. This for the most part means that there are more people earning in the median salary range who need to buy a house to start saving equity.
In the next coming years, I do believe that the market will continue to expand at a slow rate and currently affordable neighborhoods will have more appreciation than more expensive markets. Overall, the appreciation will be slow and steady. The international economy is still not very good compared to the US economy, holding back any fast growth. I’m certainly not an economist and this is a complicated area but home buying is still worth it when the 30-year mortgage rates are still right under 4% as of today. If you are considering to sell your house, it may be a good time to sell given that you could do better than 4-5% potential gain in the next 12 months. Certainly the fast train of home appreciation has left the station at this point.