Portland’s real estate market has remained active this summer. Home sales in June increased slightly more than 4% from last year. In fact, it was the strongest June in Portland since 2007. There is currently just 2.8 months of unsold inventory in the Portland Metro Area with some popular close-in eastside neighborhoods fewer than a month.
Click here and read my summary below for an update on Portland Home Values.
The most compelling news is an 8.7% rise in the average sales price of a Portland home this year. This is combined with a 34% increase in the average sales price since the market hit its lowest point in 2011-12. The average priced Portland home right now is about $329,000. A median priced home is $303,000 (a median value represents a mid-point with an equal number of houses priced above and below this number).
An average home sold in 2011 of about $245,000 would be worth $329,000 today. This is great testimony to the rewards of home ownership. It is also a great time to sell!
Has a new housing bubble formed in Portland? Perhaps not. According to Lawrence Yun, Chief Economist for the National Association of Realtors. The acceleration in home prices has slowed in comparison to last year. This is viewed as a positive and more healthy trend. This is also good news for first time home buyers who have struggled to enter the market. There are significant differences right now, compared to 2005-06. Borrowing standards are much tighter. People who get mortgages are meeting very strict standards. Second, there are large cash purchases. People are cashing in stock options and property investors are coming in with all cash. Any time there are cash transactions and higher down payments, the risk of decline is reduced. Lawrence suggests prices have not set new highs yet, and that the market is still in recovery mode.
How are homes selling in your neighborhood?
Close-in neighborhoods in North, Northeast, and Southeast Portland continue to be popular with houses selling quickly. Inner-SE prices lead the pack at 14.6% this year! The inventory of homes for sale is about one-month, while the Portland Metro Area is 2.8 months.
Southwest and Northwest Portland, Beaverton, Aloha, and Hillsboro remain active. Beaverton and Aloha prices have risen almost 13% this year.
Area’s more rural East and Southeast like Gresham, Troutdale, Oregon City, and Milwaukie have seen their best price increases since 2006. Gresham and Troutdale continue to be the most affordable with a median priced home of $227,000. Milwaukie home prices have risen almost 13% this past year with a median price of almost $284,000.
Interest Rates are about 4.25%.
Please call me when it’s time to buy or sell a home. I’ll work hard for you!
Darin Provost, Broker
Vintage Real Estate
And call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy. You’ll be very happy with Brent’s experience and commitment to serving his clients.