Portland Housing Market Report – June 2017
Portland housing market report is out for June 2017. To describe the June housing market in a very simple way, it’s hot but not as hot as June 2016 but the rates are going down! Listings in the city limit had the record high number of listings that hit the market in June 2017 since 2011. 1,415 new listings came on the market this past month. The second highest number of listings goes back to June 2014. May, June and July usually have a high number of listings because of the nice weather and spring and summer is the official home buying season nationally. So what is happening with this high number of listings this June? Is the market slowing down? Maybe. However homes still stayed on the market for average 21 days, which indicates that it’s still hot and is a seller’s market. To give you a point of reference, in July 2011, the average days on the market was 68 days!
According to the Portland housing market forecast for 2017, it is expected to slow down and so far there is no real surprise except it may still be a little hotter than expected with average 21 days of homes being on the market. That is still 2016 hot in terms of days. I have been working with buyers in Portland as a buyer’s agent and there are still multiple offers. Not 10 other offers like 2016 but more like 3-4 other offers.
So the median sold value for June 2017 is $430,000, which is $10,000 less than May 2017. I would not interpret this decrease as a slowdown but rather a normal fluctuation of median prices caused by more expensive listings being sold earlier in the spring season. July and August median price may go up another 10 to 20K and there will be another drop in September. Overall market seems to have increased about 6% since 2016 so far looking at median sold prices according to the RMLS records.
Mortgage rates have been actually going down lately. As of June 29, 2017, 30 year mortgage rate is at 3.88%, down from 4.05% from May 11, 2017 according to YCharts.com. The rates are probably going to increase at some point but it seems like the world economy is lagging behind despite the US economy being very strong, keeping the rates low. This will continue to be a good news for home buyers in the US and especially for millennials who are entering into the housing market in big numbers. I’ve helped with lots of millennials in the Portland market find their first home and lots of them have solid jobs with a good work history by now. Renting is becoming a very expensive proposition in Portland. Millennials are now thinking, “Why not buy a house and start building equity for the same amount of rent into mortgage payments?”
The City of Portland is still very unaffordable for most home buyers unless you go east of 205. Many are choosing suburban markets such as Beaverton, Hillsboro, Milwaukie, Gresham, Gladstone, and Oregon City where you can find bigger and safer neighborhoods with “some” coolness in the local entertainment market. I hope the interest rate stays low to help more home buyers catch up in the Portland market. It’s turning out to be still a good time to buy a home in 2017.