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The Portland real estate market is a relatively healthy one right now. Home prices have been on the rise, large in part due to the high demand for homes and the continued influx of new residents.
What exactly has been happening in the real estate market in Portland up to now, and where are things expected to go in the coming months and into the new year?
Let’s go over some of the current trends and future Portland housing market forecast 2024 to help you make a more informed buying decision in the months ahead.
The Portland real estate market has been hot over the past year and continues to be healthy as we round off the year. While the economy took a hit as a result of the health crisis, that didn’t really have much of an effect on real estate in Portland.
According to RedFin, 486 homes were sold in December 2023 in Portland, down 10.5% from the same month last year.
The average home sits on the market for 35 days before selling, which is 3 days less than December 2023.
The tight inventory continues to be an issue. Currently, Portland has a 1-month supply of available homes for sale to meet buyer demand. That’s much lower than the 5- to 6-month supply that’s characteristic of a balanced market.
It certainly still is a seller’s market in Portland, as there are still more buyers actively looking for a home for sale versus the supply of homes available. But it also seems as though things have slowed just a little.
According to Zillow, the average home price in Portland is $515,001. That’s a 1.9% decrease from the same time last year.
That’s a good thing for Portland home buyers as there may be an opportunity to buy a home for less than what buyers paid last year, while expecting price appreciation over the foreseeable future. But competition still exists.
Given the figures from RedFin, it’s still quite competitive out there for home buyers looking to make a purchase in Portland and surrounding areas.
It’s expected that the housing market in Portland and across much of the US will likely remain modest but healthy over the course of 2024 compared to how things went last year. Home prices in Portland are not expected to rise as quickly as they have over the past few years, though they are still expected to keep up a healthy pace of increase.
High mortgage interest rates have also kept many buyers out of the Portland real estate market due to affordability issues. As of right now, the rate for a 30-year fixed-rate mortgage is 6.6%.
However, experts agree that rates are on the decline and are expected to dip down to 6% by the end of 2024.
Home price increases and sales may slow somewhat over the first half of 2024, then pick up the pace into the latter half of the year.
As the economy continues to improve, employment rates could also improve and wages may increase. This will strengthen consumer spending and subsequently increase buyer demand, which will drive home prices.
What will the Portland housing market 2024 look like?
In terms of home prices, they’re expected to continue on an upward trajectory, though they may not jump as sharply as in previous years.
While mortgage interest rates remain high, there is some speculation about what they’ll do in 2024. The current interest rate environment is helping to keep home buying buzzing, though many expect rates to continue declining into this year.
If rates continue to decrease in 2024, that could encourage more home buyers to get into the market. According to the Mortgage Bankers Association (MBA), rates are expected to average around 6% in 2024. While this is still quite high, it’s still lower than where they were just a few months earlier.
Although the average home price in Portland will increase at a healthy rate, it won’t see as much of an increase as smaller real estate markets. Major cities across Oregon and the entire country have seen incredible gains over recent months and years. But it will be the smaller cities that will shine as some of the hottest markets in 2024.
If you’re ready to get into the housing market in Portland, OR, then now may be the perfect time to do so. With home prices still on the rise and mortgage rates still relatively low, you’ll want to get in sooner rather than later to take advantage of these perks before prices and rates continue to rise.
To ensure you’re fully prepared for your home buying endeavors, we’ve put together a helpful Guide to the Portland Housing Market. Check it out before you embark on your home buying journey!
At Sammamish Mortgage, our loan officers are waiting and ready to help you navigate buying a home in Portland, OR. You deserve the best loan for your specific situation, not the biggest one we can sell you. That’s why we pay all of our LOs a generous salary instead of commissions, so they put your best interests first.
Sammamish Mortgage has been in business since 1992, and has assisted many home buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help you get pre-approved. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon, and Washington.
Contact a loan officer if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.