Portland home buyers have faced affordability constraints since early 2013, due to steep appreciation and fierce buyer competition, as the market rebounded from the recession. Fortunately, buying real estate in Portland has recently become more achievable!
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What Is Driving This New Affordability?
The abundance of new construction throughout the Portland Metro Area has provided buyers with more inventory to select from. In Washington County, 31% of 2019 home sales thus far have been new construction, and in Clark County a whopping 46% of home sales are attributed to new construction! With more homes on the market, buyers don’t have to compete so heavily against one another.
Slower Job Growth
Portland has experienced a period of rapid job growth since 2012. The peak of job growth was in 2015 and in the last 18 months job growth has been flat. This has contributed to the slowdown of people moving here and has influenced the slowdown in home price growth. For the first time since the recession, Oregon’s home price growth has dropped below the national average appreciation rates.
Declining Population Growth
With migration into Portland slowing, simultaneously many baby boomer Oregonians are heading to the state of Washington (often because taxes are lower). A decrease in migration into Portland means fewer buyers to compete with. An increase in migration out of Portland, means more homes are hitting the market. As property values are moderating, many of these sellers have a sense of urgency to sell sooner than later.
Remarkable Interest Rates
As seen in our last blog segment, Hot Topic: Low Interest Rates – Don’t Miss This Unexpected Opportunity , today’s record low interest rates have produced an incredible opportunity for home buyers. Couple this amazing circumstance with the fact that Portland home appreciation is slowing, and you’ve got yourself a golden opportunity to purchase your dream home!
The Carey Hughes Homes team recently visited with a local Economist and were thrilled to hear this trusted resource say, “Now is the best time to buy real estate in Portland. Inventory is higher and prices are either lower than last year or stable.” We couldn’t agree more with this statement. We are seeing the changes in the market and encourage people to take advantage of this opportunity NOW.
The Carey Hughes Homes team would be honored to advise you, a friend or family member in today’s real estate climate. Don’t hesitate to contact us with any questions regarding the buying process, the value of your home, or anything else involving real estate!