What is the current state of the real estate market in Portland, Oregon? What trends should I expect?
Portland, Oregon, has become a hotspot for young professionals looking to live near urban centers. The city boasts a thriving arts scene, great food, and abundant outdoor recreation. The median home price in Portland is $350,000.
Recently, Portland was ranked #1 for millennial job growth. In addition, the unemployment rate dropped from 4% to 2.6% this year. This means that the demand for housing is high. This article will detail some of the most significant trends in the Portland metro area real estate market in 2022.
2022 Portland House Prices
The average house price in Portland is projected to increase by 9.2 percent by 2022. This is faster than the national average of 5.8%.
This forecast assumes an annual appreciation rate of 3.4% over the next five years. For example, if you purchase a home today, it would cost you about $7,500 more than what the home costs today.
Home prices are expected to rise because of increased demand. Millennials are moving into the region at a rapid pace. They prefer to live close to downtown areas. As a result, there is a shortage of homes for sale.
In addition, Portland’s economy is growing at a healthy clip. The unemployment rate is currently 2.6%, lower than the national average of 4.3%.
2022 Portland Housing Trends
Portland is one of the fastest-growing cities in America. It is also one of the safest places to raise a family.
As a result, we expect to see continued population growth. There is already a shortage of available homes. To meet this demand, builders have begun building new multifamily units.
Many millennials choose to move to Portland because they want to be closer to their jobs. These workers tend to work in tech or healthcare industries.
This trend is likely to continue as these companies expand their operations in the region.
2022 Portland Home Sales
We expect to see strong demand for single-family houses. Portland is known as a “city with a soul.” Its residents enjoy living in walkable communities where they can easily access public transportation.
We anticipate that many homeowners will choose to sell their existing homes before purchasing another property. This may occur due to financial reasons or simply because they don’t need additional space.
There are several factors driving home sales in Portland. First, the city has excellent schools. Second, the median income is higher than the national average. Finally, the cost of living is relatively low.
Property Taxes in Portland
Oregon has some of the lowest property taxes in the country. Property taxes are based on assessed value. The average homeowner pays about $1,300 per year in property taxes. This number includes both local and county taxes.
It is important to note that property tax rates vary throughout the state. Some counties charge significantly less than others.
If you plan to buy a home in Portland, check out your potential neighborhood. You should consider how much money you will pay in property taxes.
Real Estate Trends in Portland, Oregon
Single-family houses are in demand in Portland. However, buyers must be willing to pay a premium for them.
The average price of a single-family home in Portland is currently $543,000. That means the typical buyer is paying almost $100,000 above its current market value.
The supply of single-family homes is limited. Inventory levels are at a 10-year low. This is causing house hunters to bid up the asking price.
Another factor contributing to high housing prices is rising land values. Landowners are charging more than ever before.
The average price per square foot of land in Portland is now over $600. If you’re looking to build a new home, it might be worth buying an undeveloped lot instead.
Homes for Sale in Portland, OR
In 2022, we expect to see a steady increase in new listings. We estimate that there will be around 17,500 properties listed for sale.
That’s an increase of only about 3 percent from 2019. This is primarily due to the lack of available homes.
In addition, we expect to see fewer foreclosures. There were 1,200 foreclosure filings in Portland last year. This was down by nearly 50 percent compared to 2021.
Portland Housing Market Outlook
As long as job growth continues, we expect to see continued demand for housing in Portland.
However, the Portland real estate market is not immune to economic downturns. For example, the Great Recession caused a significant drop in home sales between 2007 and 2009.
This led to a significant decrease in the overall population of Portland. It also created a shortage of affordable housing.
We believe this trend could repeat itself if the economy turns for the worse. Therefore, it is essential to have a solid strategy for protecting yourself against such events.
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