Status of the Portland Real Estate Market in 2017
2017 was another hot year for the Portland real estate market, which has been enjoying a tremendous run over the last few years and has emerged one of the strongest markets in the country. However, a report by PDX Listed reveals that sales activity has been cooling in certain areas, even though home values are still 7.31% higher than they were in 2016. The slowdown occurred in neighborhoods such as Sunnyside, Hillsdale, Rose City Park and Irvington among others, with home appreciation occasionally dipping (by less than 1% in most cases) over certain months, although at the end of the year each found positive gains in their home values, even if they were lower than in previous years. Some neighborhoods had their home prices rise dramatically, including Lents, St. Johns, Powellhurst-Gilbert and Hazelwood.
Demographics in Portland
Portland has emerged as one of the most desired places for millennials to live in the nation. “Keep Portland Weird” has become a catch-phrase for those that have flocked there, with the rationale being that soaring home prices in California has led to an exodus in the young working class, who’ve found plenty in Portland to make them feel at home. Many people work in the tech area, although the service industry also contributes in a big way, with flourishing breweries and start-up coffee shops, food trucks, restaurants and more contributing to the city’s culture. It’s also one of the cities most responsible for the increasing power of millennials over the market. However, that shift seems to be in danger, with worries of housing affordability becoming a community concern, as is the influx of wealthy newcomers, leading a crisis of affordability. Meanwhile, baby boomers have also found Portland to be a desirable location for their retirement years, with its emphasis on clean leaving and comparatively low home prices, at least compared to California.
Average prices of housing in the Portland Real Estate Market
The median sale price for a home in Portland stands at $407,000 according to Zillow, while rent is an average of $1,895 a month.
Reasons for growth and outlook for 2018
The Portland real estate market is expected to stay hot in 2018, with Zillow predicting overall home values will go up another 4.4%, although some speculators say it could be much higher. However, the increasing price of homes, along with the higher cost of living has affected the population growth, which, while still among the highest in the country, slowed considerably in 2017. The overall employment rate remains high, but while job growth is steady, average income hasn’t kept pace. First-time home-buyers are particularly affected by the high prices and lack of inventory, with more mixed-income appropriate housing a priority to keep this a balanced market. However, for those already owning property, home values remain high, and that’s not expected to change in the year ahead, although the worry is that if the prices spike too much Portland could stop attracting the diverse population it has become known for.