2020 was a tough year for Portland, Oregon in a lot of ways. However, the city is resilient and it's beautiful state continues to attract transplants. Now, as 2021 keeps rolling, let's look at the latest real estate trends in this busy city.
Quick Facts:
- U.S. News indicated that Portland belongs to the best places to live. In fact, as of July 13, 2021, the city ranks #10.
- The metro population of Portland, OR, is 2,417,931.
- The median listing price is $515,360.
- Portland's cost of living is 29% higher than the national average.
- Currently, Portland, Oregon, is a seller's market.
Portland, Oregon, in a nutshell
The city can be a perfect hub for real estate investments. Norada Real Estate Investments said that the best neighborhoods are:
- Portland's Downtown (For investing)
- University Park (For students)
- Pearl District (High-end area)
- St. Johns (For nature lovers)
Weather
In Portland, the average high and low temperature is 63.1F/45.6F. Thus, during summers, it is usually sunny and warm, with 67.4F average. While winters don't last long (40.9F), and when it snows, it's typically gone after a few hours.
How's the economy?
Work-life balance is very important for people in Portland. In fact, it's one of the reasons why many people want to move to the city. Employment is solid, and the job market grows quickly.
Moreover, the tech industry and medical careers have been in demand in Portland, Oregon. The unemployment rate is low, and most workers receive higher salaries than the national average.
Public Schools
The city hosts 119 public schools and 238 private schools. Listed below are some of the best public schools, according to Realtor.com:
- Riverdale Grade School
- Winterhaven School
- Grant High School
- Lincoln High School
Real Estate In Portland, Oregon
(Data from July 7, 2021)
In the past couple of months, Portland real estate saw positive changes in its home values and rental rates. With that said, Zillow predicts that in the coming months - until May 2022 - home prices will increase up to 18.3%. So, experts suggest that home sellers should start taking advantage and preparing for this trend.
However, the rise in home prices was due to the low inventory. From November 2020, real estate experts in Portland, Oregon, saw a low stock. Up until now, the city experienced no changes. That is to say, the area is still under an extreme shortage of available homes for sale.
The current real estate market favors the sellers. Hence, it is very ideal for them because the sale-to-list price ratio is 100%.
Real Estate Market
The median home prices in Portland, Oregon, continues to increase. As a result, sellers were able to enjoy most of the benefits. Here's a timeline:
According to Norada Real Estate Investment, the median sale price in May 2021 rosed to $490,000, increasing to $5,300 from April 2021. After that, in June 2021, the median list price went up to $530K, trending up 11.6% year-over-year. During that time, most homes stay in the market for 39 days.
And now, in July 2021, the median listing home price is $515,360. Houses only go pending for 22 days - which is shorter than in May 2021. Lastly, the median price per square foot in May-July stays around $302.
Real Estate Trends
Portland, Oregon, is a hot place for millennials. They want to buy a home that would fit their needs - family-friendly and a house in a cultural city. James Young, director of the University of Washington Center for Real Estate Research, has a say on this trend.
Moreover, there are many students in the city. As a result, house renting has become in demand too. The average rent as of June 29, 2021, is $1,395 monthly.
Now that Portland, Oregon, is a seller's market but buyers' advantage is the low mortgage rate. As of June this year, the mortgage rate is at 2.93%.
Final Thoughts
The real estate market in Portland, Oregon, has some concerns because of low inventory. Nonetheless, Zillow sees a very good projection in the remaining half of 2021 and the beginning of 2022.
Experts also say that the ongoing low inventory market will soon come to an end. Portland, Oregon, will be a balanced market soon. With all that said, living and investing in this beautiful city is still the top recommendation of most agents.
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