How Much is the Average Priced Home in Portland?
If you are moving to the Portland real estate market you probably want to know what the home prices are like. But the median and average price are different. Let's step back into middle school for a minute and discuss the differences between median and average: the median is the price of the home right in the middle of all the houses. So if there were 100 homes for sale the median would be the price of house #50. The average or the mean is the number when you add up all 100 homes and divided in half. The median home price gives you a better idea of what the majority of homes cost in a particular area. The average can skew the information dramatically, especially if there's a home that's only $20,000 versus a home that's over $2 million.
In a recent article from Oregon live.com, the average homeowner would need to make about $61,000 a year in order to afford the median home price in the Portland metro area. The median home price is currently $288,900 according to HSH.com. This company calculated the numbers including principal, interest, taxes and insurance on a house priced at the median list price and determined it would take about $61,000 of income in order to afford this monthly cost. However, this median price can vary from website to website so the actual dollar amount is really unknown. Other real estate websites showed the current median as $307,700.
The website ranks 27 metropolitan areas and least Portland 19th in terms of affordability. Affordability technically is all relative meaning that no more than 30% of your income should go to housing costs.
The average price also varies greatly as according to several real estate websites the average listing price is over $500,000, but that's the list price and not the sales price.
All in all, Portland still remains an affordable option for homeownership. If you're interested in learning more about the Portland real estate market, homes and neighborhoods in the surrounding metro communities feel free to browse the website or contact me for a personalized list of homes that meet your search criteria.