Housing inventories are low all throughout the country, and the State of Oregon is no exception. There are more buyers than sellers in the real estate market and although that can make finding the right home difficult for buyers, it has helped sellers close the deal fast and get their preferred final sale price as buyers compete for their homes.
In the State of Oregon however, the housing inventory is low, yet real estate experts do not expect that to have the same impact on sales as it has in other states.
What to Expect from the Oregon Housing Market in 2018
In Portland, there are fewer houses on the market, and fewer multiple offers for homes expected. This means that the decline in available homes will not have the same positive effect on Portland’s seller’s market.
Currently, Portland is producing around half of the number of housing options than needed to meet the demand of the growing population. It is estimated that close to 111 people move to the area daily.
Rick Sadie, a Realtor from The Sadie Home Selling Team says that it is still a seller’s market. “With the amount of equity and appreciation that people have built, we’re back beyond where we were in 2007 and 2008. So, you’d think people would be taking that equity and moving now.” However, that’s not happening as more homeowners are choosing to remain in their homes and in Portland.
Contributing to the housing inventory problem is the fact that baby boomers are choosing to remain in their family homes instead of relocating closer to families or moving into a smaller residence.
Over the past few years, if there were multiple offers on a single property from potential buyers, there would be at least 20 or more offers. Today, that number has decreased to around two or three multiple offers because of the high demand for homes in the area.
Sadie says that the outlook for first-time home buyers is not as bleak as it seems. Popular towns such as Beaverton and Canby are excellent spots to look for affordable, entry-level homes.
Are There Limits for Oregon’s Current Housing Market?
The sales prices for homes in 2017 may have set records, but the prosperous market has raised some questions about limits for the Oregon housing market.
The state had a long-running seller’s market for a while and that contributed to the record-breaking real for real estate in Oregon’s major cities. Local realtors expected the 2018 year to follow the same path, however, there were some who predicted that home sales would not reach the same heights as the previous year.
While it may continue to be a seller’s market, it is not as strong as it was in 2017. Therefore, it is a great time for potential buyers to move into the area and buy a home, especially if they are a first-time home buyer.
We are seeing the same real estate trends not only in Oregon but all throughout the country. The average sales price for a home in Lane County went up 9.6% between 2016 and 2017, with an average of $287,900. Last year, the average sales price exceeded the long-standing record of $265,300 that was set back in 2007.
The average sales price for a home in the Florence, Oregon area rose up 6% to $242,700. Most real estate experts state that they don’t expect the average price of home sales to rise beyond 9% for 2018. However, if they do, it would be difficult to continue to have affordable housing for buyers.
Lane County has seen an increase in their housing market ever since the Recession that occurred in 2012. For the last 5 years, prices for homes have been on the rise.
Today, homes that are priced between $200,000 and $350,000 are in high demand. Buyers are advised to be preapproved for financing when shopping for a home and be prepared to make a quick decision when they find a home they are happy with.
The Oregon Housing Market for 2018
Based on statistics taken from Zillow and compiled in February 2018, the average value of a home in Oregon is $334,305. The value of homes has gone up as much as 8.8% since 2017 and Zillow predicts that home values will continue to rise as much as 3.3% before 2019.
The average list price per square foot in Oregon is currently at $203, which is much higher than the average for many other states.
In December 2011, the average price per square foot was much lower at $113.
Oregon’s Market Health score from Zillow is 7.9 out of 10, and it is expected to rise in the coming months. Homes spent an average of 88 days on the market. The cities with the most expensive home sales include Portland, Bend, Beaverton, Hillsboro, and Gresham. Fortunately, there are also some good options for entry-level homes in towns such as Springfield and Salem.