Each quarter we pool our knowledge and experience to evaluate the latest real estate market data. We provide our thoughts here to give you an insider’s look at what’s going on in Portland.
The Portland real estate market has been going strong for several years now with home values consistently trending upward. Based on the quarterly market data, the latest data that we have pulled for 2017 so far, and our observation, this will continue to be the case for the near future.
You can see on the “Inventory in Months” chart below that inventory in the Portland area remains low (3-6 months of inventory is considered normal). This, combined with the higher than usual buyer activity so far this year, has put added pressure on the Portland market heading into spring. Because of the low inventory, sellers that list their homes prior to ~ May 1st are the most likely to experience the shortest number of days on the market in 2017.
There has been a consistent trend the past 3 years that you can see on the “Active Residential Listings” graph below. Historically, January and February have some of the lowest inventory available but a decent increase is expected in spring and summer. This same pattern will likely occur in 2017.
The current data is for the quarterly period ending December 31st, 2016.
What's in store for 2017 and beyond?
There are many factors to consider when trying to anticipate what will happen to the Portland real estate market in 2017 and beyond, especially when trying to predict whether or not there will be any major changes. Two factors to keep an eye on are interest rates and the economy.
Home loan rates did see an increase toward the end of 2016 but remain very low. If the rates rise significantly in 2017, it could affect buyer activity. The economy is always a big factor when it comes to housing. New state and federal policies and policy changes may promote uncertainty. Locally, there is some fear that our strong seller’s market may not be sustainable for much longer.
These and other factors could result in more people deciding that 2017 is the year to list their home(s) for sale. Look for the possibility of 2017 being the year that inventory begins to swing upward. Keep an eye on current inventory by visiting our featured listings page. You can also visit our search for available homes page to see what's on the market. If you'd like to receive listings based on your search criteria be sure to sign up!