OREGON - When you're looking to make money in the Portland real estate market, it's important to look at the recent trends. One of the major trends is the migration of homeowners from the city to the suburbs. This is good news for Portland real estate investors, but it also means that vacancies in the city are increasing. As a result, investors are turning to long-term rental properties. As a result, the housing market is now catering more to rehabbers and landlords than to flippers.
The housing market in Portland has reflected the national trend in that supply and demand have both increased. Despite the inventory shortage, home prices in Portland have increased faster than the national average. The current housing supply in the city is only 4.6 weeks, which has led to increased competition and higher asking prices.
However, the housing market is beginning to cool off. This is likely due to a lack of expansion. The shortage of housing inventory has been one of the primary factors driving prices in the last decade. However, despite the lack of growth, incomes in the city are still rising. This means that Portland real estate prices are set to remain stable for the next few years.
While the Portland real estate market continues to rise, prices in other parts of the state will likely slow down. For example, prices in Corvallis, OR, will increase 3.6% in 2023, while those in Hermiston-Pendleton will increase by 3.5%. Home prices will also rise in Grants Pass, OR.
While the Portland housing market is in a transition phase, it is still a strong market for home buyers. Prices are still a bit lower than last year, but these trends bode well for those planning to move into Portland. The shifts in supply and demand will give buyers more leverage to negotiate prices.
The Portland housing market is becoming more tenant-friendly. As a result, landlords with only one home will easily find tenants. In addition to this, Portland's housing market has a low supply of homes and a high demand for rentals. In the meantime, rents will continue to rise faster than the median home value.
In 2023, a projected 200,000 more Millennials will turn age 32. This will help fuel home prices, especially in neighborhoods aimed at first-time home buyers. In addition, this demographic group is particularly strong in the counties surrounding major cities. While home prices will likely continue to rise, there is a chance that the housing market will begin to slow as a new president is elected.
According to Zillow, the median home price in Oregon is $524,718. While this is a yearly average, it's still a huge increase compared to the last couple of years. However, in August 2023, housing market conditions will shift slightly in favor of buyers.