Portland Housing Market Report – November 2017
Despite the housing market slowdown, home prices are still strong. Normally, the median home prices drop quite a bit in the winter but November has not dropped much. The median sold home prices for November 2017 is $401,500, which is a 4.8% increase from $382,500 in November 2016. However, when it comes to single family homes, the increase is 9% since 12 months ago. The median sold price of detached houses in November 2017 is $418,000. Condos and town homes did not appreciate as much.
Average days on the market is becoming longer as the number of transactions slow down. This November had about 12% higher number of inventories compared to 12 months ago and this could only mean that there are less buyers out there. To support that theory, sold units are also less than last November’s sold units despite more listings on the market. So where are the buyers? More home buyers do not seem to be in such a hurry as they were last year when things were hot. We are no longer seeing multiple offers unless it’s a killer deal. There are more choices on the market and buyers are becoming choosier with what they are buying. The mortgage rate is still staying low for the moment although this is expected to increase quite a bit by the end of 2018 according to my 2018 Portland housing market forecast. There may be a surge of home buying before the increase happens while the market is not so competitive anymore.
The home values have appreciated quite a bit in the last few years and this did in fact push some buyers out of the Portland market. Suburb markets such as Beaverton and Hillsboro are still hot due to its relatively affordable housing market. In Portland, although affordable and up-and-coming neighborhoods still do exist, the median sold home prices are in the solid low $400K range in 2017. In 2016, the median was in the high $300K with peak spring and summer months going over $400K but 2017 has shown the median home values in the solid low $400K all year since March. According to the forecast, Portland market will still increase about 5% next year and it’s safe to say the days of the $300K median home prices are over as of now. Experts are not foreseeing any housing crash or recession anytime soon. In fact the housing market is so healthy that if there is any sort of recession around 2019, the housing market is an element that can bring the US economy out of its recession as it’s forecasted to be more likely caused by a geopolitical crisis.
Portland’s overall economy is very healthy now and although growth may slow down with the market adding more jobs, more people are working in Oregon than ever before since the last recession. People are still moving in and lots of millennials are forming families requiring housing so the demand will continue to stay strong so long as the housing market doesn’t become way too unaffordable. The good news is that the growth is expected to slow down considerably from now.