In the past few years, the Portland housing market has become a seller’s dream. That is because the population growth is driving the demand for housing. That is in addition to pulling the real estate market out of recession.
Unfortunately, it has not been as great for those seeking to buy Portland modern homes. Bidding wars and cash buyers are driving up home prices.
Will 2017 see more of the same or is growth likely to taper off? Should homeowners sell while the market is hot? What about those looking to buy, or to upgrade to another property? Is now the time to sell Portland condos and upgrade to houses. How about adding rental properties to your plan?
Here’s what you need to know.
Population Growth is Expected
Estimates of anticipated population growth in Portland are high. Over the next 20 years, it ranges from over a quarter of a million to just under half a million. However, according to the recent Comprehensive Plan from the Portland City Council, the city is planning for a 42% increase in population by 2035. That equates to about 260,000 residents.
These people will need housing. This is great news for sellers. Conversely, the unknown factor is how fast housing development will keep up. Chances are housing in Portland neighborhoods closest to the city center will continue to gain value in the coming years.
Multi-Unit Dwellings are Increasing
In 2015, Portland saw the development of 3,700 new apartment units. Nearly double that number was planned for 2016. It was an attempt to keep up with the influx of new residents.
This could have an impact on the housing market. Portland residents are biding their time by renting. They are waiting for developments in the housing market to catch up. This, in turn, will bring greater opportunities to buy.
Housing Prices are Expected to Slow
Pundits predict that a rapid rise in housing prices in Portland. It has increased by roughly 15% in 2016, according to home site Zillow. Though, it is expected to start to slow in 2017 due to rising interest rates.
However, the relatively rapid development of Portland lofts and apartments for rent has not been mirrored in housing developments for purchase. The growing millennial population is more interested in buying than renting.
Early estimates anticipate growth in home prices in the 5-10% range in 2017. That averages out to roughly half of the growth seen in 2016. This is still good news for sellers. However, it may also indicate that this is a good time to sell. It’s also a great occasion to buy up. That’s if you can find available property fitting your needs.