The process of buying a house can be stressful and emotionally draining. To find the perfect house, you will likely spend several weeks looking at properties and filling out dozens of forms.
Start the process early to make it easier to buy a house. Portland’s housing inventory, mortgage rates, and market trends change from month to month.
Last year, for example, Oregon’s home listings were at their lowest price in April. Homes were, on average, $39,076 cheaper. The average listing price for homes in November, the most expensive month, was $47,155 less than the annual average.
The best time to buy a house depends on your priorities. Find out when you can get the best deals and have the most options for buying a Portland home.
Preapproval by a licensed lender is the first step to buying a house. Shopping around for lower rates is a good idea, even if you are already preapproved. This will pay off over the loan’s life.
Portland’s current real estate market
Portland homebuyers should be aware that the real estate market in Portland is still highly competitive. The “starter home” price bracket is the most crowded. That doesn’t mean that you can’t or shouldn’t buy. It just means that you and your Realtor may have your work cut out for you.
Recent Data
A Freddie Mac analysis found that Oregon is the most housing-deficient state. The inventory of housing in Portland is also very tight. In addition, the population is still growing.
Portland home buyers should have a realistic expectation about what they can get for their money, and be willing to move quickly if the right property becomes available.
Also, it is important to get your financing in order before you go into the real estate market. Cash buyers must have proof of funds and statements.
Days on Market (DOM), Portland, OR
Check the median number of days a property has been on the market before it goes to sell. This will give you an idea of the competition in that market. This is known as the “days on Market”.
The median DOM in a hot market may be very short. According to RedFin, the national average days on market in the US (DOM) is currently 30 days. This is more than twice as long as Portland’s average of 16 days.
The real estate market in Portland is booming!
This is quite low but it is not surprising considering Portland’s current competitive market. It would indicate that the market is a seller’s market. This means that buyers are likely to face strong competition, making it more difficult to enter the market without having to compete with a lot of other buyers.
Portland real estate market prediction for 2022
Here is a Portland realty market prediction for 2022 that’s likely to hold up. Low housing inventory will continue fueling competition among buyers and the market will see a slight increase in median home prices.
Zillow’s housing analysts recently provided a 12-month forecast for Portland’s real estate market. This prediction will continue into December 2022.
According to the company, the median Portland home value would increase over the next 12 months. According to their estimates, house values rose by 13% in the past 12 months. This prediction is in line with real estate trends overall and indicates a rapid appreciation.
Best time of the year to buy in Portland
Western markets are becoming more attractive for home buyers. The median Portland home sale price fell in January for the first time since 2012. Buyers rejoice! The median home sale price in Portland fell 1.3% from last year.
The Portland market has seen dramatic price increases in the past two years, an average of 10% per year, and this is not the first time. The average home today is worth $384,900. However, during peak selling months, it might see a slight increase.
If price-conscious buyers are looking to buy a home, waiting until the fall and winter can help sellers be more open to negotiating their asking price. It is usually due to their inability to sell their home during the “slow season,” which may result in fewer offers. This can be a great opportunity for a home buyer to make a fair offer.
Best places to buy a home in Portland, OR
According to the 2016 Census, Portland’s population was 632,309. Since 2010, it has experienced a steady increase of approximately 10,000 annually. The increase is due to the growth in the local labor market and the reasonable cost of living.
These neighborhoods are popular, close-knit places to live if a busy city is not your ideal place to call home. This data was compiled using statistics from the FBI, U.S. Census, and other reliable sources.
Eastmoreland
Eastmoreland is located just outside Portland. It has high-rated elementary and secondary schools, historic architecture, and a station that allows you to take the Portland-Milwaukie Light Rail. The majority of properties are built in the 1930s-1940s, and they list at a median price of $496,000.
Bethany
Bethany is home to 228,19 residents. It employs more than 10,000 people. The Bethany job market thrives in Advanced Manufacturing, Healthcare & Social Assistance, and Tech Services industries. The median household income in Bethany is $117,056, which is significantly higher than the $55,322 national average.
Northwest Heights
This hilltop community offers residents beautiful views and easy access to downtown Portland. It also has low crime rates. This area is home to highly-rated public schools, from elementary through collegiate levels. It also borders Forest Park, which offers many family-friendly activities.
Hillside
Hillside is the ideal place for those who want a rural lifestyle but still have easy access to major metropolitan amenities. The area offers a stunning view of downtown Portland, a neighborhood that has a median home price of $694,964, high-rated education facilities, as well as a stellar safety rating.
Healy Heights
Healy Heights is ranked #1 in the Best Neighborhoods in Portland to Raise a Family. It offers excellent education for elementary and high school students. This area is home to many large, custom-built homes that are pleasing to multiple buyers. It also has a wide range of architectural styles which make the real estate market an attractive place to resell or retain profit.
Here are 4 steps to buying a Portland home
Because each market is unique, it can be difficult to know exactly how timing affects your home purchase. Local experts can help you streamline the home-buying process and negotiate the best deals.
Get a Portland, OR real estate agent
A local agent can help you with your house hunting. Local knowledge gives them insight into the property’s market, the seller’s urgency, and how long it has been on the market.
Without knowing all the details that affect a deal, home buyers are at a disadvantage. A professional will guide you through the buying process and offer benefits that independent buyers can’t.
Consider your needs and plan your goals
Be clear about what you want from a property before you start the walkthrough process. You should be open about your timeline, budget, and desired location.
After you have outlined your needs, a local real estate agent can create a custom home-buying experience.
Find a lender and secure financing
A mortgage is required unless you intend to purchase your home with cash. Current mortgage rates are a major factor for most Portland homebuyers. It is possible to save thousands of dollars by doing some upfront research and comparing rates so you can find the best one.
A typical Oregon house is valued at $386,000. If you put 20% down and take out a 30-year mortgage at 3.5% interest, your monthly payment will be $1,387. If you shop around for a 3% mortgage, your monthly payments would be approximately $1,302.
Negotiate the best price
After deciding on the property you want to own, the next step can often be the most important and sometimes stressful. Once the negotiation process begins, your real estate agent will consider required home repairs, seasonal fluctuation, and comparable costs of similar homes to sway a seller into accepting your offer and moving toward closing.